Small-Market Marvels: Oklahoma City Thunder and Indiana Pacers Make History in 2025 NBA Finals
The Oklahoma City Thunder and Indiana Pacers have made history by reaching the 2025 NBA Finals, becoming the first teams to do so without paying the luxury tax. This achievement is a testament to the success of small-market franchises in the NBA, as both teams have built their rosters with a focus on young talent and reasonable contracts. Both teams finished off their conference finals opponents in brisk fashion, with the Pacers defeating the New York Knicks on Saturday night. According to Spotrac, the Pacers ranked 18th in the NBA in payroll this season with a figure of $169,149,491, while the Thunder ranked 25th with $165,601,091. Meanwhile, the Knicks were fourth with $188,877,651, while the Minnesota Timberwolves, whom the Thunder beat in the Western Conference finals, were second at $202,790,231. The luxury tax was instituted in 2002 and has been a staple of the NBA since then. However, every NBA Finals has reportedly featured at least one luxury-tax team, with 26 out of 44 teams reaching the Finals being taxpayers. The non-taxpayers include the 2006 Miami Heat, 2014 San Antonio Spurs, 2015 Golden State Warriors, 2017 Warriors (somehow) and 2020 Los Angeles Lakers. The Thunder and Pacers have reached the NBA Finals with similar strategies. Both teams feature a pair of sizable contracts for their point guards and top big men, with the rest of the roster filled out with reasonable veteran deals and rookie contracts. The Thunder signed Shai Gilgeous-Alexander to a five-year, $172 million maximum rookie extension in 2021 and center Isaiah Hartenstein to a three-year, $87 million deal in free agency last offseason. Meanwhile, Pacers stars Tyrese Haliburton and Pascal Siakam are both making $42,176,400 this season on very similar max extensions. With some of the best young talent in the NBA on such cheap deals, both teams have been able to build their cores with smart moves like Hartenstein and Alex Caruso for the Thunder, and key trades like Haliburton-Domantas Sabonis and Siakam for the Pacers. Both teams have shown a long-term plan coming to fruition, with no albatross contracts in sight. However, it's important to note that these teams are relatively cheap for now. Every single young player on the Thunder is going to have an enormous pay raise coming, with Gilgeous-Alexander eligible for a record five-year, $380 million supermax deal in 2026 and Holmgren and Williams eligible for $592 million in rookie max extensions. The Thunder have made clear they intend to pay up for Gilgeous-Alexander at least, but roster building would be a bit harder if they have those three deals in addition to Hartenstein on the books. The same cannot be said about the Pacers, who have Myles Turner hitting free agency and in line for a major raise. In conclusion, the Oklahoma City Thunder and Indiana Pacers have made history by reaching the 2025 NBA Finals without paying
