Tyrese Haliburton’s Injury Impact on the Indiana Pacers
In a significant setback for the Indiana Pacers, Tyrese Haliburton, their standout point guard, will be sidelined for the entire 2025-26 NBA season after suffering a torn Achilles tendon during the NBA Finals. This injury poses a substantial challenge for the Pacers, who just secured a spot in the Eastern Conference championship, especially as they also navigate the loss of free agent center Myles Turner.
Financial Mitigation Through Insurance
Fortunately for the organization, insurance will mitigate some of the financial impact of Haliburton’s absence. The NBA’s temporary total disability (TTD) insurance program will cover up to $18.2 million of Haliburton’s substantial $45.6 million guaranteed salary for the season. This program is specifically designed to assist teams financially when top players face long-term injuries.
Under this system, teams are mandated to insure at least four of their highest-paid athletes—either based on the current season’s pay or remaining salary—and have options to cover further players. The insurance payouts commence after a player has missed 41 consecutive regular-season games. Depending on the tier of coverage chosen, benefits can range from 50% to 80% of a player’s salary, with higher tiers requiring more substantial annual premiums. Last season, the maximum payout per game reached approximately $492,000 for clubs selecting the premium option.
The TTD program had previously allowed teams to cover five players, with payouts starting lower at $175,000 per game before increasing to $275,000 as player salaries rose.
Similar Challenges for Other Teams
Amidst these developments, the Boston Celtics are facing a similar predicament with Jayson Tatum. Following his Achilles injury during the Eastern Conference semifinals against the New York Knicks, Tatum, who ranks among the highest earners in the league with a $54.1 million salary for the upcoming season, is also expected to miss a significant portion, if not the entirety, of the 2025-26 season. The Celtics could secure a little over $20 million through the TTD insurance based on maximum coverage.
Other prominent figures such as Kyrie Irving and Dejounte Murray are also anticipated to be out for a considerable period while recovering from injuries that hindered their performance in the preceding season. Irving, who missed the last 20 games for the Dallas Mavericks due to an ACL tear, has a salary of $36.6 million, and Murray will miss time as he recuperates from an Achilles rupture that sidelined him for the New Orleans Pelicans’ last 33 games of the prior season, with his salary standing at $26.8 million.
Additional Developments in the League
Additionally, the Milwaukee Bucks recently waived Damian Lillard, who also encountered an Achilles injury during the 2025 playoffs. The Bucks opted to “stretch” Lillard’s remaining $112.6 million contract over five years, although it remains uncertain if the insurance will factor into any payments related to his deal, as representatives chose not to comment on the situation.
NBA’s Disabled Player Exception Policy
To alleviate the blow of injuries, the NBA has a disabled player exception (DPE) policy, allowing teams to bring in a replacement player when a star suffers a season-ending injury. The salary for this replacement can be up to 50% of the injured player’s pay or the non-tax mid-level exception limit, which stands at $14.1 million for the upcoming season. Additionally, teams can trade for players while maintaining certain salary cap considerations, including a bonus of $100,000.
As the league navigates such challenges, teams will look to adapt and replace their star talent while managing the financial implications of these high-stakes decisions.
