INDIANAPOLIS — The Indiana Pacers have been granted two Disabled Player Exceptions due to two lengthy player absences the team is dealing with. Bobby Marks of ESPN was first to report that Indiana now has the two salary cap exceptions.
A Disabled Player Exception (DPE) is a tool that NBA teams can apply for in certain situations. If a player is expected to be on the shelf for the remainder of the season — most often due to injury — their team can apply for a DPE. Upon applying, an NBA-assigned physician is tasked with determining if the sidelined player “would be unable to play through the following June 15,” according to the league’s Collective Bargaining Agreement.
In the Pacers case, the two players that they have been granted a DPE for are Isaiah Jackson and James Wiseman. Both players, who are centers, suffered a torn Achilles early in the season — Wiseman did so on opening night and Jackson did on the first day of November. “We’ll be playing smaller at times until we get some help. Hopefully, something like that can happen and we get another big,” Pacers head coach Rick Carlisle said earlier this season.
While the Pacers didn’t confirm if either big man was out for the season, the fact that they were granted two salary exceptions suggests Wiseman and Jackson won’t play again in 2024-25.
What are Disabled Player Exceptions and how can the Pacers use them?
DPEs allow a team to add a replacement player. Said player — whether acquired via waivers, a signing, or a trade — can have a salary that maxes out at the lesser of 50% of the salary of the player they are replacing or the Non-Taxpayer Mid-Level Salary Exception. For Indiana, that nets out to a $2.218 million DPE for Jackson’s absence and a $1.119 million DPE for Wiseman’s injury.
Both exceptions will expire if they go unused by March 10 of next year. The Pacers, as mentioned earlier, can use it to add a piece via trade, signing, or waiver so long as the added player’s contract expires after the 2024-25 season and fits into the exception (+$100k in the case of trades).
ATLANTA, GEORGIA - OCTOBER 08: Zaccharie Risacher #10 of the Atlanta Hawks drives against James ... [+] Wiseman #13 of the Indiana Pacers during the first quarter at State Farm Arena on October 08, 2024 in Atlanta, Georgia. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Kevin C. Cox/Getty Images)Getty Images
The Pacers now have another salary cap tool to add talent in the right scenario. Unfortunately for Indiana, finding that perfect situation is challenging. Using a DPE requires a roster spot, and the blue and gold currently have a full group with 15 players. To bring in someone using a DPE, they would have to cut or trade a member of the team.
Additionally, players signed with the exception count toward the salary cap. The Pacers are so close to the luxury tax (about $500k as of this writing) that they can hardly add more money into the mix until free agent contracts prorate to lower totals.
Later in the season, should the Pacers have a roster spot, perhaps they could use the DPE provided by Jackson’s injury to sign a free agent to a contract that is slightly over the minimum salary. They may have to free up some tax wiggle room before doing so, though, and they would need an open roster together. Altogether, that’s a difficult task for a moderately expensive team that is dealing with numerous injuries.
The Pacers current spending and full roster make using their new exceptions a tough task without a trade or waiver. But it’s better to have roster building tools available than not, and the blue and gold now have another method to add talent later in the season if they want to. Of course, having Jackson or Wiseman would be preferable, but Indiana now has the provided tools at their disposal to move forward in their absence.