The Road to the NBA Finals 2025
In a remarkable turn of events, the Oklahoma City Thunder and the Indiana Pacers have advanced to the NBA Finals for 2025, marking the first time in league history that both teams competing for the championship have done so without exceeding the luxury tax threshold.
Playoff Success
Their respective playoff runs have been impressive:
- Indiana clinched its spot by defeating the New York Knicks over the weekend.
- The Thunder secured their Finals berth by overcoming the Minnesota Timberwolves in the Western Conference Finals.
Financial Overview
This year, the Pacers ended the season with a payroll of around $169 million, placing them 18th overall in the NBA, while the Thunder’s payroll reached approximately $166 million, ranking 25th. In stark contrast, the Knicks and Timberwolves had payrolls of $188 million and $202 million, making them significant taxpayers this season.
The luxury tax threshold was set at $170 million, with 11 teams surpassing this limit, seven of which made the playoffs. Historically, since the luxury tax was introduced in 2002, every Finals has featured at least one team paying this tax, with exceptions in 2002 and 2005 due to a lack of basketball-related income.
“Out of the 44 teams that have made it to the Finals, only 18 have done so without being taxable, and among those, just five have claimed the championship, including the 2006 Miami Heat and the 2014 San Antonio Spurs.”
Team Strategies and Roster Structures
The path for both the Thunder and Pacers to reach the Finals has been guided by distinct strategies, yet their roster structures show similarities.
The Thunder’s cornerstone players include Shai Gilgeous-Alexander, who secured a lucrative five-year extension in 2021, and center Isaiah Hartenstein, who was signed last offseason. Complementing them are veterans like Lu Dort and promising young players Chet Holmgren and Jalen Williams, both currently on rookie contracts.
The Pacers have also built their roster around key figures like Tyrese Haliburton and Pascal Siakam, each making similar salaries due to their max deals. Additional contributors include Myles Turner and Aaron Nesmith, with Obi Toppin as a productive bench player earning over $10 million.
Both franchises have crafted rosters that blend seasoned players with budding talent, eschewing burdensome contracts that could hinder long-term success.
Future Challenges
While both teams have found success operating with relatively low payrolls, they will face challenges moving forward regarding roster management:
- The Thunder will soon need to address massive potential contracts for their promising young players, including Gilgeous-Alexander and rookies Holmgren and Williams.
- The Pacers need to navigate Turner’s impending free agency, which could lead to a big financial decision.
As the Finals approach, it remains to be seen how these two teams will leverage their current financial flexibility while preparing for a future with heftier price tags.
