The Indiana Pacers and New York Knicks, two storied franchises with a history of intense playoff clashes, are once again at the center of attention in the NBA. Their latest postseason matchup in the 2025 Eastern Conference Finals has not only revived their legendary rivalry but may also signal a dramatic shift in the Eastern Conference’s balance of power.
Longtime fans recall Reggie Miller’s infamous choke gesture from the 1994 East Finals and the intense, often hostile battles of the ’90s. Last season, the Pacers eliminated the Knicks in a decisive Game 7 at Madison Square Garden. This year, both teams have returned stronger, despite not being preseason favorites. With top contenders like the Boston Celtics and Cleveland Cavaliers already eliminated, Indiana and New York are seizing the moment and may be setting the tone for the Eastern Conference for years to come.
Indiana’s Window Opens Amid Roster and Spending Shifts
The Knicks vs. Pacers are on the cusp of a new chapter. Traditionally known for their contrasting approaches—New York embracing big-market spending while Indiana maintains a fiscally conservative stance—the Pacers have historically steered clear of the luxury tax. But with owner Herb Simon nearing 91 and new investors onboard, sources suggest the team is prepared to increase spending to retain its core. This includes addressing the future of center Myles Turner, a key two-way player set to become an unrestricted free agent on June 30. Turner is coming off his best three-point shooting season and continues to anchor the Pacers’ defense.
Indiana already has major salary commitments, including $91 million next season for stars Tyrese Haliburton and Pascal Siakam, and a pending pay jump for emerging wing Andrew Nembhard. With the NBA salary cap projected to rise by 30% in the next three years, thanks to a massive $77 billion media rights deal, the Pacers could enter a new financial phase without compromising depth. Their challenge will be maintaining flexibility while keeping Turner and sustaining momentum, something not seen in the franchise since their early 2000s peak.
Knicks Built for Longevity Behind Smart Spending
Knicks vs. Pacers is shaping up to reflect a tale of transformation. While Indiana continues to evolve, New York is finally reaping the rewards of years of rebuilding. For the first time in over a decade, the Knicks are paying the luxury tax, signaling renewed ambition under owner James Dolan. The foundation of their current success lies in Jalen Brunson’s remarkably team-friendly contract, four years for $156 million, which could become a bargain as the cap expands. Even with expensive acquisitions like OG Anunoby and Karl-Anthony Towns, the Knicks remain positioned just below the NBA’s punitive second apron threshold.
However, New York’s roster depth remains a concern after recent trades, forcing Coach Tom Thibodeau to lean on a tight rotation. Fortunately, the Knicks are expected to use the $6 million taxpayer midlevel exception this offseason to add much-needed bench support without disturbing their core.
As rival teams like Boston and Cleveland struggle with cap limitations and roster dilemmas, the Knicks vs. Pacers are emerging as two of the East’s most sustainable contenders. With shrewd financial management and ascending talent, their current playoff duel might just be the beginning of a long-term battle at the top of the conference.
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