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The Indiana Pacers are bracing for a difficult 2025–26 season following the loss of franchise cornerstone Tyrese Haliburton, who suffered a torn Achilles just seven minutes into Game 7 of the NBA Finals. The devastating injury will sideline Haliburton for the entire year, putting Indiana’s championship window on pause, possibly indefinitely.
While there’s no replacing Haliburton, Pacers general manager Chad Buchanan confirmed this week on the Setting the Pace podcast that the team has been granted a disabled player exception (DPE) worth $14.1 million. The DPE provides some flexibility. It allows the Pacers to acquire a player on an expiring contract via trade, waivers, or free agency. But only for a single season.
“We’ve applied for that and been granted that exception, so I don’t know if I’m breaking news there for you guys,” Buchanan said when asked by co-host Alex Golden about the possibility of the team applying for a DPE. “Whether we use it or not depends. Using the full exception would put us into the luxury tax, which we’re not opposed to if it’s the right player.”
Indiana’s front office isn’t rushing to spend the exception. Given that using the full amount would push the team into the luxury tax, a threshold they avoided by not re-signing Myles Turner. But with only two reliable point guards on the roster in Andrew Nembhard and veteran T.J. McConnell, another addition at that position remains a real possibility.
The Pacers will have options at point guard
Rookie Kam Jones, a scoring combo guard from Marquette, and two-way players RayJ Dennis and Quenton Jackson offer potential. But neither project as an immediate Haliburton replacement. Buchanan emphasized confidence in the coaching staff’s ability to develop young talent, while keeping the door open for roster upgrades.
“People will say this is a gap year for the Pacers,” the Pacers general manager said. “We don't view it that way. That's never been how we've operated. We go out there to try to compete to win every season. There are certain seasons when circumstances make it difficult. I'm not saying that's what this year is because I think we have a very good core group of guys returning who want to win and had a great experience last year.”
The Pacers still have their full non-taxpayer mid-level exception available. Both are other tools to help them stay competitive without Haliburton. Whether Indiana ultimately uses the DPE or not, its mere existence gives the team one more lever to pull as it works to remain relevant in a suddenly uncertain season.
