{"id":59551,"date":"2025-06-01T13:13:09","date_gmt":"2025-06-01T12:13:09","guid":{"rendered":"https:\/\/theplayoffs.news\/en\/?p=59551"},"modified":"2025-06-01T13:13:16","modified_gmt":"2025-06-01T12:13:16","slug":"thunder-and-pacers-set-new-nba-milestone-first-finals-without-luxury-tax-teams-since-cap-era-began","status":"publish","type":"post","link":"https:\/\/theplayoffs.news\/en\/thunder-and-pacers-set-new-nba-milestone-first-finals-without-luxury-tax-teams-since-cap-era-began\/","title":{"rendered":"Thunder and Pacers Set New NBA Milestone, First Finals Without Luxury Tax Teams Since Cap Era Began"},"content":{"rendered":"<p>The Indiana Pacers and the OKC Thunder are the two NBA finalists for the 2024-25 season. OKC Thunder have been a dominating force throughout the season, finishing as the first seed in the West while Indiana Pacers have surged late in the NBA Playoffs, surprising everyone with their clutch DNA.<\/p><p>Both teams have a robust roster that they have developed with hard work behind the scenes. Belief in youth, sharp scouting, and elite coaching have driven the Pacers and Thunder to the NBA&rsquo;s grandest stage. They&rsquo;ve done it without bloated contracts or a superstar-centric system.<\/p><p>For the first time since the luxury tax was introduced in the NBA to regulate spending, the Finals has seen two teams who remain below the apron. The Indiana Pacers and the OKC Thunder have both not crossed the luxury tax, but still managed to win their respective conferences.<\/p><figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Oklahoma City Thunder and Indiana Pacers would be the first NBA Finals since the luxury tax was in effect where neither team was a taxpayer.<br><br>At least one team was a taxpayer in every Finals where the luxury tax was in effect (2002 &amp; 2005 did not have luxury taxes due to lack&hellip;<\/p>&mdash; Keith Smith (@KeithSmithNBA) <a href=\"https:\/\/twitter.com\/KeithSmithNBA\/status\/1927917507005878593?ref_src=twsrc%5Etfw\" class=\"trk-cta-link\" data-cta-trk='{\"ctaType\":\"Link\",\"ctaSubType\":\"main\"}'>May 29, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure><p><strong><a href=\"https:\/\/theplayoffs.news\/en\/lebron-james-teams-up-with-luka-doncic-on-explosive-new-podcast\/\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"trk-cta-link\" data-cta-trk='{\"ctaType\":\"Link\",\"ctaSubType\":\"main\"}'>Also Read: LeBron James Teams Up With Luka Doncic on Explosive New Podcast<\/a><\/strong><\/p><p>This while expensive teams like Boston Celtics, Golden State Warriors, Los Angeles Lakers, Minnesota Timberwolves have all failed to even reach the NBA Finals. Phoenix Suns who are second in terms of salary cap are projected to go $25 million above the second apron. Despite such an expensive roster, they haven&rsquo;t even been able to qualify for the NBA Play-In tournament, leave alone the playoffs.<\/p><p>This underlines how exceptional their achievement is in an era ruled by high payrolls. The Thunder are at the 25th spot in terms of roster, spending $165 million with $5 million to spare below the tax line. While the Pacers are at the 20th spot, spending almost $169 million this season.<\/p><h2 class=\"wp-block-heading\">What is the Luxury Tax Cap in the NBA?<\/h2><p>The NBA introduced the luxury tax in the 1980s as the league began transitioning into the modern free agency era. The disparity among the teams was huge in those times when it came to finances. So in order to cap the spending power and bring parity, the NBA instilled a soft cap system.<\/p><p>Once that cap is surpassed by teams, the Luxury tax kicks in. For the 2024-25 season, according to the CBA, the salary cap is set at $140.588 million. While the luxury tax has been set at $170.814 million. Any side that has a roster spending at $170.814 million or more has to pay the special tax to the NBA.<\/p><p>For every dollar spent above the threshold, franchises pay $1.5 to $5 dollars more in tax. The NBA introduced two additional thresholds within the luxury tax system called aprons. The first apron for the 2024&ndash;25 season is set at $178.655 million, and the second apron stands at $189.485 million, per the latest Collective Bargaining Agreement.<\/p><p>Crossing the first apron imposes significant financial restrictions. Teams above this level can&rsquo;t use the full mid-level exception. They also cannot sign buyout players who earned over the mid-level, and face limits on salary aggregation in trades.<\/p><p>If a team crosses the second apron, the restrictions become more aggressive, as they lose access to the taxpayer mid-level exception altogether and can&rsquo;t take back more salary than they send out in trades.<\/p>\n<div class=\"mm-layout mm-layout-type-post mm-layout-slot4\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Low spend, high reward NBA journey for both the Thunder and Pacers<\/p>\n","protected":false},"author":39,"featured_media":59567,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_mux_skip_reasons":[],"footnotes":""},"categories":[4],"tags":[865,4757],"class_list":["post-59551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nba","tag-indiana-pacers","tag-okc-thunder"],"acf":[],"yoast_head":"<!-- This site is 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