INDIANAPOLIS – The Indiana Pacers plan to trade their 2025 first-round draft pick to the New Orleans Pelicans for a 2026 first-round pick.

The selection the Pacers are sending to New Orleans is 23rd overall in next week’s draft. The draft rights to Mojave King, a player Indiana chose 47th overall in the 2023 NBA Draft, is also heading to the Pelicans. In exchange, Indiana is receiving its own pick back in the 2026 draft, which they previously sent away in a trade to acquire Pascal Siakam.

The Pacers 2026 first rounder that they are receiving was dealt from Toronto to New Orleans in February as a part of a deal involving Brandon Ingram. It was originally protected for selections 1-4 in 2026, and had the Pacers kept the pick, it would have become a 2027 first-round pick. That was also protected 1-4, and had Indiana not conveyed a pick in either 2026 or 2027, then New Orleans would have received two second round picks. Now, the Pelicans guarantee themselves a first-round pick in 2025 while the Pacers get back in control of their own draft capital.

That’s the main appeal of this trade for the Pacers. The Stepien Rule makes it so that teams aren’t able to have two consecutive future drafts without a first-round selection. Because Indiana didn’t have a first-round pick in 2026, they weren’t able to trade their 2027 first rounder. And the protections on the 2027 portion of their outgoing picks meant they would have needed to wait a year to send that pick away in deals. Now, they have no restrictions.

That means by draft night, the Pacers will be able to trade first-round picks in 2026, 2028, 2030, and 2032 all in one deal, for example. They could also opt to package their own picks in 2027, 2029, and 2031. Previously, the 2026 and 2027 portions of those trades would have been unavailable.

Additionally, the Pacers need for a prospect via a first-round pick in the near term is fairly low. They already have a deep roster, and young talent like Bennedict Mathurin, Jarace Walker, and Johnny Furphy are all reserves. Mathurin plays every night, but Walker and Furphy are still waiting for consistent opportunities. Add in 2023 first-round choice Ben Sheppard, and it’s clear the Pacers don’t have room to add another younger player who wouldn’t be in the mix for immediate minutes.

The 23rd pick would likely have carried a cap hit of roughly $3.2 million in 2025-26. For the Pacers, who will be thinking about their spending carefully with a luxury tax bill potentially coming their way, moving off of that salary has some value. The team still has to fill out their roster, so the savings may be negligible. But every dollar counts.

Between Stepien restrictions, playing time concerns, and salary considerations, it already made sense for the Pacers to move off of their 2025 first-round pick in order to get one in either 2026 or 2027. By getting their own pick back, they gain a ton of flexibility and put their future roster and draft pick outlook in a more favorable position. It’s smart business for a team currently in the NBA Finals. They have to think about winning now more than winning in the future via draft selections.

Losing King is a small price to pay to make that happen. He played for the Pacers G League affiliate, the then Indiana Mad Ants, in 2023-24 before playing for the New Zealand Breakers this past season. The Pelicans will now figure out his long-term outlook.

The Pacers now only own the 54th selection in the upcoming NBA Draft. That could be used on a player that would carry a low cap hit in year one via the second-round pick exception or on a player that would get a two-way contract. They could opt for another draft-and-stash, too, but cheap contributors will be meaningful for the Pacers next year.

The true value of this trade won’t be known for Indiana until time passes, but creating financial flexibility in the short term while adding short and long term optionality with transactions is forward-thinking business. Now, the Pacers will focus on the NBA Finals until they are done playing. The 2025 NBA Draft begins next Wednesday.