According to ESPN

The salary cap as been set at $57.7 million, which is about a million lower than last year ($58.68M). The luxary tax line dropped to $69.92 million, which is over a million less than last year ($71.2M). This sets the Mid Level Exception to be $5.85 million a year. This actually happened even though the NBA made 2.5% more money last year. Odd.

So what does this mean for the Indiana Pacers?

Well using the numbers found at HoopsHype, the Pacers have $55,744,996 in salary IF we lose both Jack and the "Bearded One" to free agency. As we know, both are restricted free agents and both have been offered the qualifying offer ($2,899,798 and $1,000,497 respectively). If both take the qualifying offer, we will have $59,645,291 in salary.

There is no way in hell the Pacers pay the luxary tax. Not when the brothers are losing money and not when the team isn't any good. We are not the New York Knicks. However, this does give us roughtly $10M to play with before we cross that line this off season (if Jack and McRoberts just except the qualifying offer).

This news will also scare other teams from spending money and/or giving the free agents this year crazy amounts of money. Gives us a better chance of finding the bargains with are looking for.

I can definitely see McRoberts just getting the qualifying offer or something similiar for multiple years. I am against paying him the million as we could use it elsewhere and he is behind Murphy and Hansbrough on the depth chart, but he has looked awesome this summer league so I am warming up to it. Jack will likely cost us more than 3 million.