Struggling Indiana Pacers Gain Two Disability Waivers for Injured Players, What's Next?
INDIANAPOLIS — The Indiana Pacers have been given two Injury Hardship Exemplifications thanks to two prolonged player absences the team is experiencing. Bobby Marks of ESPN was the first to announce that Indiana now possesses these two salary cap exemptions.
An Injury Hardship Exemplification (IHE) is a resource NBA teams can request in certain circumstances. If a player appears to be out for the remainder of the season — usually due to injury — their team can request an IHE. Upon request, an NBA-designated physician is put in charge of determining if the incapacitated player "would be unable to play beyond June 15 the following year," according to the league's Collective Bargaining Agreement.
In the Pacers' situation, the two players that have been handed an IHE are Isaiah Jackson and James Wiseman. Both players, who are both centers, sustained a torn Achilles early in the season — Wiseman tore his on opening night and Jackson did so on the first day of November**. "We'll be playing with smaller lineups at times until we get some reinforcements. Hopefully, a situation like that occurs and we acquire another big man," Pacers head coach Rick Carlisle said earlier this season.
Although the Pacers didn't confirm whether either big man would be out for the season, the fact that they have been granted two salary cap exemptions suggests Wiseman and Jackson likely won't play again in 2024-25.
What are Injury Hardship Exemplifications and how can the Pacers utilize them?
IHEs allow a team to enlist a replacement player. This replacement player — whether acquired via waivers, a signing, or a trade — can have a salary that reaches the lesser of 50% of the salary of the player they are replacing or the Non-Taxpayer Mid-Level Salary Exception. For Indiana, this translates to an $2.218 million IHE for Jackson's absence and a $1.119 million IHE for Wiseman's injury.
Both exemptions will expire if they remain unused by March 10 of the following year. The Pacers, as previously mentioned, can use it to recruit a player via trade, signing, or waiver provided that the added player's contract expires after the 2024-25 season and fits into the exception (+$100k in the case of trades).
The Pacers now have another salary cap option to bring in talent if the occasion arises. Regrettably, locating that ideal scenario is difficult. Utilizing an IHE necessitates an open roster position, and presently, the blue and gold have a full roster with 15 players. To bring in someone using an IHE, they would have to drop or trade a current team member.
Furthermore, players signed with the exception count toward the salary cap. The Pacers are almost at the luxury tax (about $500k at present) and can barely add more money to the pot before free agent contracts decimate totals.
Later in the season, should the Pacers have an open roster spot, they might potentially utilize the IHE granted by Jackson's injury to sign a free agent to a contract marginally above the minimum salary. They may need to create some tax room before doing so, however, and they would require an open roster space together. In total, that's a difficult task for a moderately priced team wrestling with numerous injuries.
The Pacers' present financial standing and full roster make utilizing their new exemptions a challenging endeavor without a trade or waiver. Nevertheless, having roster-building tools available is preferable to nothing, and the blue and gold now have an additional method to bring in talent later in the season if they so decide. Of course, having Jackson or Wiseman would be preferable, but Indiana now possesses the provided means to proceed in their absence.
The Indiana Pacers, following NBA free agency, could potentially make use of Isaiah Jackson and James Wiseman's Injury Hardship Exemplifications (IHEs) to recruit a new player. If they choose to utilize these exemptions, they can sign, trade for, or claim a player via waivers, as long as the player's contract expires after the 2024-25 season and fits into the exception's salary limit.
Despite having a full roster and being close to the luxury tax, the Pacers now have another salary cap option to bring in talent if an opportunity arises. This additional tool becomes particularly valuable in the context of the team's numerous injuries, although utilizing the IHEs might require creating some tax room and freeing up a roster spot.
