Myles Turner remains a key player for the Indiana Pacers. However, his contract situation complicates the team’s financial flexibility. Due to a prior contract extension that increased his salary by more than 10%, Turner had to wait three years before signing another extension. However, he signed a two-year extension that started running in 2023. This means he will become an unrestricted free agent this offseason. To keep Myles Turner, the Pacers will have to lose TJ McConnell.

Despite injuries, the Pacers have maintained a top-four position in the Eastern Conference. The front office recognizes this core’s potential but faces tough decisions to retain key players. According to Brian Windhorst, sources confirm that the Pacers want to keep Turner, who is nearing his 700th game with the franchise. However, keeping him will require careful financial maneuvering.

The Pacers are projected to be $22 million below next season’s luxury tax ($187.9 million) without Turner’s contract. However, Turner will likely demand a raise from his current $19.9 million salary. Indiana has avoided paying the luxury tax since 2005 and does not plan to exceed it next season. Keeping Turner will require negotiating a team-friendly deal while staying under budget.

Tim Bontemps points out that the center market remains weak, limiting Turner’s leverage. Few teams have significant cap space, and none seem willing to pay big money for a veteran center. Turner’s best alternative may be signing for the full midlevel exception with another team, which would still be a pay cut. This gives Indiana some leverage in negotiations but does not eliminate the challenge of managing their salary cap.

Beyond Turner, the Pacers must decide on Isaiah Jackson’s future. Jackson has spent most of his time recovering from an Achilles injury, which weakens his negotiating position. The Pacers need reliable backup bigs, evident from their trade for Thomas Bryant this season.

The team holds full Bird Rights on Jackson, allowing them to offer him the most money in free agency. However, doing so could push Indiana into the luxury tax. Historically, Pacers ownership has been pragmatic and risk-averse in financial decisions. The last time the team faced a rising payroll, they re-signed key players but later traded them to cut costs.

Given Indiana’s financial constraints, TJ McConnell’s contract appears to be the most expendable. The McConnell extension that kicks in the 2025-26 season is a four-year, $44.8 million deal, with $26.2 million guaranteed. He remains a valuable veteran, but Indiana has younger guards in Tyrese Haliburton, Andrew Nembhard, and Ben Sheppard under contract.

The Pacers must also prepare for Bennedict Mathurin’s designated rookie extension. Mathurin has emerged as the team’s third option and could command a deal worth over $30 million per season. Recent contracts for Jalen Suggs ($30.1 million AAV) and Immanuel Quickley ($32.5 million AAV) set the market for young guards.

With McConnell carrying a $10.2 million cap hit, the team may need to move on from him to create financial flexibility. The Pacers operate in a small market and must make financially responsible decisions. Keeping Turner and securing Mathurin’s future outweighs retaining McConnell.

Indiana faces a tough offseason balancing roster continuity and financial constraints. Keeping Turner and Mathurin requires sacrifices, and McConnell’s contract stands out as a likely casualty. The Pacers must make difficult but strategic moves to maintain competitiveness without exceeding the luxury tax.