The Century's Most Affordable, Youthful NBA Finals Occurring Due to Collective Bargaining Agreement
The Unprecedented Youth of the 2025 NBA Finals
The 2025 NBA showdown between the youthful Oklahoma City Thunder and the Indiana Pacers is a spectacle like no other in nearly half a century. The team that emerges victorious will snatch the title of the youngest NBA champion since 1980, depicting a significant shift in the league landscape.
This isn't a mere stroke of luck. It's the fruit of the league's collective bargaining agreement that dictates players' earnings at various stages of their careers. In 2020, a second apron rule was introduced, complicating the pursuit of dynasties for teams with veteran cores. The youthful dynamism of the Thunder and Pacers has a direct impact on their financial planning.
Here are some critical figures that shed light on the age and financial status of both teams:
24.7 - The Thunder's average age, weighted by playoff minutes, as per Basketball Reference (ages are as of February 1 for apples-to-apples comparisons across seasons). The Portland Trail Blazers of 1977 were a tad younger at 24.5 years, but the only other champion since the NBA/ABA merger younger than the Thunder or the 2025 Pacers (26.2) was the 1980 Los Angeles Lakers (25.7).
$169.1 million - The total payroll for the 2025 Pacers, making them the 18th highest-paying team in the NBA and below the luxury tax threshold of $170.8 million. The Thunder's payroll was $165.6 million, ranking them 25th, and they too remained beneath the threshold.
Typically, a high payroll has been associated with winning, but it's noteworthy that neither team paid the luxury tax for this season, and the majority of the champions from the last 18 years did pay some tax. This marks the first NBA Finals in the past two decades featuring two teams that have managed to win without breaking the bank.
Both finalists rely heavily on players under affordable rookie deals. All-Star Jalen Williams of the Thunder earned only $4.8 million this year, while fellow starter Chet Holmgren, who is a bargain at $10.9 million, also falls under this category. For the Pacers, Andrew Nembhard, the third-leading player in playoff minutes, was paid a mere $2 million.
$42.2 million - The combined salary for Indiana's Pascal Siakam and Tyrese Haliburton, who are the highest-earners of this series but only rank 19th among all NBA players this season. Oklahoma City's Shai Gilgeous-Alexander, who signed a rookie contract extension in 2020, earned $35.9 million, having reached the maximum allowed by league rules. Both Gilgeous-Alexander and Haliburton signed for 30% of the salary cap, the maximum limit for players in their fifth and seventh seasons, respectively. Only those with at least 10 years of service can be paid up to 35% of the cap.
The financial flexibility granted to Haliburton and Gilgeous-Alexander allows their franchises the room to construct robust rosters without burdening their salary caps. The Pacers, for instance, acquired Siakam during the 2023-24 season and then extended his contract following a successful stint in Indiana. The Thunder offered a free agent contract worth $29 million per year to starting center Isaiah Hartenstein last summer.
The past two NBA champions, the Denver Nuggets and the Boston Celtics, followed a similar pattern of growth, achieving titles in the years preceding significant salary hikes for key players. In 2023, the Nuggets won the title when Nikola Jokic's salary was only $47.6 million, and the Celtics clinched victory in 2024 before Jaylen Brown's cap hit soared to $49.2 million under his new supermax contract.
$380 million - The rumored value of the record-breaking five-year extension that Gilgeous-Alexander is eligible to sign in 2026. Williams and Holmgren, on the other hand, will be up for rookie extension negotiations this offseason.
Both teams' owners will savor the low payrolls while they last. Indiana may become a taxpayer as early as next season if they re-sign Myles Turner.
$3.74 billion - Sportico's valuation for the Pacers, which ranks 21st in the NBA and surpasses the Thunder's $3.55 billion (24th). This is the first year since at least 1991 that the Finals have showcased two of the league's ten least valuable franchises, according to Forbes' valuations for seasons prior to 2020.
Valuations are highly associated with market size, and both Indianapolis and Oklahoma City rank among the NBA's smaller markets.
0 - The number of NBA championships won by Indiana and Oklahoma City. One of these two cities will witness its maiden championship parade later this month.
## Bonus Read: The Durable Structure of the Thunder-Pacers NBA Finals
The 2025 NBA Finals can maintain their stand for low TV ratings, given the relatively low market size of both cities and the youthful, cost-effective rosters of both teams. The compelling competition on the court, however, is sure to captivate basketball enthusiasts worldwide.
In the context of the 2025 NBA Finals, the collective bargaining agreement has played a significant role in the financial planning of both the Oklahoma City Thunder and the Indiana Pacers, as they depend heavily on affordable rookie deals, such as for Jalen Williams, Chet Holmgren, Andrew Nembhard, Pascal Siakam, Tyrese Haliburton, and Shai Gilgeous-Alexander. The financial flexibility granted to these players allows their franchises to construct robust rosters without overburdening their salary caps.
