Pacers, Thunder Reach First Luxury Tax-Free NBA Finals

The 2025 NBA Finals between the Indiana Pacers and Oklahoma City Thunder is historic for featuring two small-market teams that both remain below the luxury tax threshold, a first since the luxury tax system began in 2002. The Pacers, making their first Finals appearance since 2000, and the Thunder, returning after 2012, have built competitive rosters through financial discipline and strategic roster construction, avoiding the high payrolls common among other playoff teams. Both teams utilize young, high-performing players on manageable salaries, with the Thunder benefiting from the Paul George trade that brought in key talent on rookie deals. This Finals matchup is also the smallest market NBA Finals in the modern era, with neither team based in a top-20 media market, signaling a shift away from the dominance of large-market franchises. The Pacers’ jersey sponsorship includes an innovative QR code patch by local startup Spokenote, highlighting their commitment to technology and fan engagement. Overall, this series represents a new model of competitive success that balances fiscal prudence with on-court performance.