Pacers could make trade to acquire additional first round pick

Financial flexibility gives Indiana some options

Oct 11, 2025; Indianapolis, Indiana, USA; Indiana Pacers forward Isaiah Jackson (22) shoots the ball while Oklahoma City Thunder guard Ajay Mitchell (25) defends in the first half at Gainbridge Fieldhouse. Mandatory Credit: Trevor Ruszkowski-Imagn Images | Trevor Ruszkowski-Imagn Images

The Indiana Pacers currently sit $5.6 million below the luxury tax. While Indiana remains over the salary cap, staying under the tax line provides meaningful financial flexibility—particularly the ability to absorb additional salary in minor-to-moderate trades while acquiring assets in return.

History shows the Pacers have been willing to leverage this flexibility at the trade deadline. Last season, Indiana needed to duck the tax and sent James Wiseman to the Toronto Raptors along with cash in exchange for a 2026 second-round pick, creating a traded player exception in the process.

In 2024, Indiana acquired Cory Joseph from the Golden State Warriors for a 2025 second-round pick (from Charlotte) and cash. The Pacers later used those cash considerations to move up one spot in the draft, swapping with the San Antonio Spurs to select Johnny Furphy.

These types of transactions are common across the league, particularly when strong relationships exist between front offices willing to help one another solve short-term financial constraints. While such moves are often limited to fringe rotation players, Indiana could look to deploy this flexibility in a more meaningful way.

A Potential Opportunity with Oklahoma City

Thunder general manager Sam Presti speaks during an introductory press conference for the 2024 Thunder draft picks at Oklahoma Contemporary Arts Center in Oklahoma City on Saturday, June, 29, 2024. | Sarah Phipps/The Oklahoman/USA TODAY Network / USA TODAY NETWORK via Imagn Images

The Oklahoma City Thunder possess a surplus of 2026 first-round picks, including:

-A top-eight protected pick from Utah Jazz
-An unprotected pick from the Los Angeles Clippers
-A top-five protected pick from the Philadelphia 76ers
-A top-five protected pick from the Houston Rockets

Indiana, by comparison, currently holds only its own 2026 first-round pick and no second-round picks in this upcoming draft. While remaining near the top of the draft would be beneficial, there are few, if any, centers projected to be selected in that range. Acquiring an additional late first-round pick could allow Indiana to invest in a developmental center without sacrificing significant assets.

Oklahoma City, meanwhile, is operating with roughly $1 million of breathing room before crossing into the luxury tax. That creates a potential alignment of interests.

Proposed Trade Framework

Pacers receive
-Isaiah Joe ($12.3 million)
-2026 first-round pick (from Philadelphia, top-five protected)

Thunder receive
-Isaiah Jackson ($7.6 million)
-Indiana’s 2027 first-round pick (top-four protected)

This structure allows Oklahoma City to kick the can down the road on draft capital while clearing $4.8 million in salary, pushing the Thunder nearly $6 million below the tax line. Given OKC’s inability to roster all of its incoming draft picks, consolidating assets is a practical necessity.

Why It Works for Indiana

Jan 27, 2026; Oklahoma City, Oklahoma, USA; Oklahoma City Thunder guard Isaiah Joe (11) gestures after a play against the New Orleans Pelicans during the second quarter at Paycom Center. Mandatory Credit: Alonzo Adams-Imagn Images | Alonzo Adams-Imagn Images

Joe is under contract for two additional seasons, with the final year being a team option. That flexibility is valuable. His salary is nearly $5 million more than Jackson’s, giving Indiana a larger matching number for future trades, allowing the Pacers to absorb more money than they could using Jackson’s contract alone.

Indiana would effectively swap a future first-round pick for an additional selection in the stronger 2026 draft, with the intent of identifying a center to develop. If Tyrese Haliburton regains form and Indiana adds a center upgrade, a top-four protected 2027 first-round pick would likely fall in the bottom third of the draft, an important consideration given early projections that view the 2027 class as weaker than 2026.

Ultimately, Isaiah Jackson has not shown enough to warrant a long-term investment. Turning his contract into a more versatile asset in Joe, while adding draft capital and increasing financial flexibility, represents a pragmatic approach for Indiana. At the same time, the deal provides Oklahoma City with cost relief and future optionality.

It’s the kind of subtle, forward-thinking move that front offices often make at the margins—and one that could quietly pay dividends for both sides.