Low budget, big results: The Pacers and Thunder stat that sets them apart from other NBA finalists

Take a quick glance behind the velvet curtain of modern sport and you’ll find, for the most part, innumerable scrambling officials rushing to produce “Everything Is OK” signs on pieces of cardboard. These are held up center stage to reassure nervous yet demanding fans in the seats below: things are most definitely under control.

Of course, that’s not true. The hair of NBA accountants is being swept off the floor as it continuously falls out like strands from a Play-Doh hair salon, while anti-earthquake prevention systems are deployed across the board to stop the nervous clattering of teeth.

But sometimes, they get it right—very right. And that’s certainly the case with both teams in the NBA 2025 Finals.

The Pacers and the Thunder have, for the first time in history, created an NBA Finals match-up in which both teams are below the luxury tax threshold.

Set up in 2002, the luxury tax system penalizes teams that exceed a yearly payroll limit, which is set at $170.8 million for the 2024–25 season. It’s designed to curb ultra-aggressive spending that could lead to financial instability down the line.

In general terms, teams must pay from $1.50 to $5.00 for every dollar spent above the luxury tax line, depending on how far and how often they exceed it. Go more than $6 million over the tax line and teams enter what is called “The First Apron”, which triggers additional restrictions on roster moves. There’s also a “Second Apron” threshold, introduced in the 2023 CBA, which imposes even stricter penalties for exceeding the tax by roughly $17.5 million or more.

From there, the money collected is redistributed. Half of the total tax revenue is divided among teams that stayed under the tax line, while the other half funds various NBA programs. This both punishes the over-spenders and rewards teams that managed their payrolls wisely.

Looking down the payroll list, one has to scroll quite a bit to find this year’s finalists: the Pacers rank 18th in payroll for 2025 at $169.1 million, while the Thunder sit even lower at 25th with $165.6 million.

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For comparison, the New York Knicks and Minnesota Timberwolves—both eliminated earlier—have payrolls of $188.8 million and $202.7 million, respectively.

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