George sustained a compound leg fracture in a Team USA scrimmage on Aug. 1.
The exception is worth $5.3 million, potentially allowing the Pacers to spend more on a free agent to help replace George this season. But the team is currently just $1.7 million below the luxury tax threshold, and Pacers president Larry Bird said Tuesday that Indiana won't cross that threshold in any potential free agent signing.
George is expected to make a full recovery.
- Ben Estes