The 2025 NBA Finals between the Oklahoma City Thunder and Indiana Pacers is historic for multiple reasons. Not only are these two of the youngest teams to ever reach the Finals, but they are also the first pair of finalists in over two decades to avoid paying the luxury tax.
This unique matchup highlights the effectiveness of smart drafting, strategic acquisitions, and financial discipline, all of which align with the NBA’s Collective Bargaining Agreement (CBA) goals.
Ahead of the Finals, I had the chance to speak with NBA Deputy Commissioner and COO Mark Tatum, who provided insight into how the rise of these two teams reflects the league’s vision for roster construction and financial strategy.
The Oklahoma City Thunder have become the youngest team to reach the NBA Finals since the 1977 Portland Trail Blazers. With an average age of 24.7 years, the Thunder have built their roster through the draft Jalen Williams, and Chet Holmgren, while supplementing their core with key acquisitions like Shai Gilgeous-Alexander, Alex Caruso and Isaiah Hartenstein.
The Indiana Pacers, while slightly older, still boast a youthful core with Tyrese Haliburton, Andrew Nembhard, and Bennedict Mathurin, alongside established stars like Pascal Siakam and Myles Turner. Their roster construction reflects a balanced approach, combining draft picks, trades, and free agency signings to build a competitive team.
During a media call, I asked Mark Tatum about the significance of having two young teams reach the Finals without paying the luxury tax.
Len Werle of OpenCourt-Basketball: “This Thunder team is the youngest to reach the Finals since the 1977 Blazers. The Pacers are relatively young themselves, and neither team is a luxury tax team, marking a first. From a league perspective, how does that shape the narrative around development, the draft, and front office vision?
Mark Tatum: “Well, it’s a great question, Len. Good to see you, too. I think what it does, and again, this is one of the goals of our CBA, is to make sure that if a team was managed well, that they could compete for a championship, regardless of market size. And what we’ve seen is there are different ways that a team can construct themselves to win a championship.”
Tatum pointed out that the Thunder’s ability to build through the draft while also making strategic acquisitions represents the ideal model for roster construction.
“I think with the case of the Oklahoma City Thunder, they’ve done it not just by drafting well, but by also going out and getting some great acquisitions, right? Alex Caruso, Hartenstein, right? These were acquisitions that they put together in free agency and through trades with the combination of drafting well, of drafting a Chet Holmgren, as an example. And so that’s what we want.”
He continued by emphasizing the intent behind the latest CBA, ensuring teams have the flexibility to build their rosters in multiple ways.
“We want to be able to create, and that’s what our goal was in the CBA, is to give teams various tools to be able to construct teams in different ways. So what you’re seeing is these teams have been put together in those ways—a combination of draft picks, a combination of trades, and a combination of free agency acquisition. So what you’re seeing is two teams have done it well to construct their team, and that was the goal of the last CBA that we did.”
NBA Debuty Commissioner Mark Tatum says the 2025 NBA Finals are a testament to smart team building and the CBA‘s impact. 👀 pic.twitter.com/K668RrlY4l
— OpenCourt-Basketball (@OpenCourtFB) June 4, 2025
Tatum’s comments underscore a shift in front office strategies across the league. Historically, 14 of the last 18 NBA champions paid the luxury tax, reinforcing the belief that spending big was necessary to win. However, this year’s Finals challenge that notion.
Both the Thunder and Pacers have maximized their cap flexibility while retaining key players. The Thunder’s payroll sits at $165.6 million (25th in the NBA), while the Pacers rank 18th with $169.1 million, both below the $170.8 million luxury tax threshold. This financial discipline has allowed them to remain competitive without compromising future roster flexibility.
The success of Oklahoma City and Indiana could reshape team-building philosophies across the league. The idea that teams must exceed the luxury tax to win is now being challenged.
The 2025 NBA Finals serve as a blueprint for sustainable success, demonstrating that young, well-constructed teams can thrive without financial excess. Whether this marks a permanent shift in team-building philosophy or remains an anomaly, one thing is clear—the Thunder and Pacers have set a new precedent for how championship teams can be built.
