In the NBA, deep playoff runs are often powered by deep pockets. But what if two of the league’s smartest, most balanced teams make it to the grandest stage without paying a dollar in luxury tax?
That’s exactly what could happen if the Oklahoma City Thunder face the Indiana Pacers in the 2025 NBA Finals. The Thunder have already secured their spot, and the Knicks are close behind. If this matchup happens, it would be the first time since the NBA’s luxury tax was introduced that both Finals teams aren’t paying the tax.
How the Thunder and Pacers Could Make NBA Finals History?
Spotrac’s Keith Smith posted about the unique possibility on X and it didn’t take long for NBA nerds and cap junkies to sit up. Since the NBA introduced the luxury tax system, designed to curb overspending, there has never been a Finals where both teams avoided it. Not once in decades.
Keith highlighted the fact on X writing:
“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,” Smith wrote.
“At least one team was a taxpayer in every Finals where the luxury tax was in effect (2002 & 2005 did not have luxury taxes due to lack of BRI.)”
“Since the luxury tax was in effect, 26 of the 44 teams in the NBA Finals have been taxpayers. 16 of the 22 champions since the luxury tax was in effect have been taxpayers.”
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.
At least one team was a taxpayer in every Finals where the luxury tax was in effect (2002 & 2005 did not have luxury taxes due to lack…
— Keith Smith (@KeithSmithNBA) May 29, 2025
Let that sink in. There have been 44 teams in the Finals during that span, 26 were taxpayers. And of the 22 champions crowned during that period, 16 had gone over the cap and paid the penalty.
But this year might just be different. However, the Pacers have to finish the job first. Indiana holds a 3-1 lead over the New York Knicks and heads to Madison Square Garden for Game 5. If they close it out, a rare moment in league history is on the table.
Breaking Down the No-Taxpayer NBA Finals Scenario
OKC’s GM Sam Presti has done a great job building the team by making smart trades and using his assets wisely. With two of their three stars – Chet Holmgren and Jalen Williams – still on rookie contracts, the Thunder have managed to build a powerhouse around MVP Shai Gilgeous-Alexander without splurging.
Their total payroll this season sits around $167 million – safely under the tax line. It’s not just cheap, it’s efficient. Guys like Alex Caruso and Lu Dort provide elite defense. Holmgren is already one of the best two-way bigs in the game. And Williams continues to evolve into a dependable second star.
The Pacers, on the other hand, are paying big to their top guys – Tyrese Haliburton and Pascal Siakam both earn over $47 million. But beyond them, the roster is remarkably balanced. No one else cracks $20 million. Myles Turner comes close, but the rest of the rotation is on smart deals.
That balance has allowed Indiana to remain flexible, even while going toe-to-toe with some of the league’s most expensive squads.
To put it in perspective, 11 teams including the Denver Nuggets, Boston Celtics, and Golden State Warriors are paying the luxury tax this season all but except the New York Knicks are out of the championship race.
Of course, this could be a one-time thing, though. Both teams will have to open their wallets soon. The Thunder will need to extend Williams and Holmgren in the near future. The Pacers, too, have roster decisions coming — especially if they want to stay competitive around their two stars.
As Smith pointed out, only five non-taxpayer teams have won it all in the luxury tax era – the Miami Heat (2006), San Antonio Spurs (2014), Warriors (2015, 2017), and Los Angeles Lakers (2020). In 2025 Pacers or Thunder could soon join that short list.
Five non-taxpayer teams in the years the tax was in effect won the title:
Lakers – 2020
Warriors – 2017
Warriors – 2015
Spurs – 2014
Heat – 2006— Keith Smith (@KeithSmithNBA) May 29, 2025
Anyway, two teams, built not just on talent but on patience, smart scouting, and financial discipline, are breaking the mold in a league where big money usually dominates. It’s rare, refreshing, and above all, worth celebrating.
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