Key Dates Arriving For Indiana Pacers And Contract Of James Johnson

INDIANAPOLIS — As the Indiana Pacers continue to juggle fielding a full roster with their close spending proximity to the luxury tax line, a key date on the calendar has arrived — and another one is approaching.

James Johnson is the subject of both dates for the blue and gold. The 37-year old forward is currently in his third season with the Pacers, though he has played in just 30 regular games for the franchise. His value primarily comes off the court — he’s a terrific veteran leader and is beloved by his teammates. Johnson has signed seven different contracts with Indiana across the last three seasons, it’s clear the team values what he provides.

“He just has great wisdom in the locker room. He has great respect from all the guys,” Pacers head coach Rick Carlisle said of Johnson during the 2023-24 campaign. “He has a very good way of communicating to guys, particularly in the heat of the moment in games.” Johnson often pops up off the bench to provide advice to teammates, and his role is one that many organizations covet. Taj Gibson, Jeff Green, Garrett Temple, Markieff Morris, Tristan Thompson, and Patty Mills provide similar elements for other teams.

What contract dates are coming for James Johnson and the Pacers?

Johnson signed a new deal with Indiana during the offseason. It’s a one-year, minimum salary deal that is partially guaranteed for $750k. Because Johnson has more than 10 years of experience in the NBA, his actual salary ($3.3 million) and his cap hit for the Pacers ($2.1 million) are much different. The league covers the difference.

Because Johnson is on a minimum deal, his cap hit climbs by a prorated amount every single day of the league year. Each time the calendar flips during the NBA season, that number rises by just under $12k. A similar reality was true for Moses Brown, who was waived from his minimum deal with Indiana earlier this month.

That reality is relevant for Johnson with the blue and gold. On Sunday, the NBA season will hit its 63rd day, and that will bring Johnson’s cap hit for the year to $755,826. His prorated minimum deal has officially reached the guaranteed amount of his contract and will now carry a larger cap hit if he is waived — and the number will grow every day.

The Pacers are flirting with the luxury tax. They currently sit just $126k away from the tax threshold, so they have to be careful with their flexibility and spending. While Johnson’s total cap hit can’t go past his minimum salary, every day he is on the team now comes with some opportunity cost for Indiana. They lose optionality going forward, though they are likely okay with that tradeoff given how valuable Johnson has proven to be.

“To have me back to keep helping these young guys [getting] better is the biggest payment of all,” Johnson said last season after the Pacers signed him to a rest-of-season deal in February. “But you know, when you get those contracts, it really shows how much they appreciate you.”

What makes December 22 an important date for Johnson is that his cap hit now rises with time, but it’s not as important as a date that comes next month. Johnson will charge just under $2.1 million to the Pacers salary ledger if his contract becomes fully guaranteed, and the Pacers have until early January to make that decision.

On January 10, every NBA player still under contract will have their deal become fully guaranteed for the rest of the season. Players must clear waivers before that date to have any non-guaranteed salary cleared from their team’s books, so decisions will be made in advance of that date when it comes to non- or partially-guaranteed deals.

That includes Johnson and his reality with the blue and gold. If Johnson is waived on or before January 7, his cap hit for Indiana would be the prorated veteran’s minimum amount up through the day he clears waivers — if he makes it all the way until January 7 and then is let go, that number would be just under $972k. If Johnson makes it through January 10 without being released, then his cap hit for the season would be locked in at $2.1 million. Even in that situation, Indiana would still be able to sneak under the luxury tax, but they would lose some flexibility.

Johnson, one of the ten oldest players in the NBA, is averaging 1.3 points and 0.7 rebounds per game this season. He’s appeared in just three games — the value he adds on the hardwood is secondary to his major behind-the-scenes impact. Indiana will have to decide if they want to part with a player like that in the name of luxury tax breathing room — and if they do move on, the front office needs to figure out what they would do with extra breathing room that is more valuable than having Johnson on the roster.

“He’s a great person, great vet,” former Pacers forward Kendall Brown said of Johnson during the most recent season. “He’s going to bring a lot of energy and toughness to the team.”

Last season, Johnson survived the league wide contract guarantee date, but he was later waived to help facilitate a trade. Indiana ended up paying out Johnson’s original deal as well as two 10-day contracts and then a rest-of-season deal. The franchise wanted to have him around. The season prior, something similar happened as Johnson was released to make a trade with the Milwaukee Bucks possible, and he was instantly brought back. There are many directions things could go even if Johnson is waived between now and January 7.

His importance to the team is immense, which is why the front office and coaching staff gush about his role. But as of Sunday, the Pacers will see Johnson’s accrued cap hit rise every day. And with an important date coming that could allow Indiana to free up over $1 million in luxury tax breathing room, they have to think about what Johnson means to the roster. It may come down to juggling his value and flexibility.