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Walsh's business-related roles were given to co-owner Herbert Simon and Jim Morris, who was promoted to President of Pacers Sports & Entertainment.2008 offseasonOn July 9, 2008, the Pacers traded Jermaine O'Neal and the rights to Nathan Jawai to the Toronto Raptors for T.J.Ford, Rasho Nesterovic, Maceo Baston, and the rights to Roy Hibbert.On the same day the Pacers acquired Jarrett Jack, Josh McRoberts, and the rights to Brandon Rush from the Portland Trail Blazers in return for Ike Diogu and the rights to Jerryd Bayless.

However, the Pacers dealt Los Angeles their worst playoff defeat up to that time by a margin of 33 points in Game Five.2000–01The offseason brought sweeping changes to the Pacers' lineup, as Rik Smits and coach Larry Bird retired, Chris Mullin returned to his old Golden State Warriors team, Mark Jackson signed a long-term contract with Toronto, and Dale Davis was traded to Portland for Jermaine O'Neal, who went on to average 12.9 points per game in his first year as a starter.

Various Pacers, including Jermaine O'Neal, soon denounced him, as O'Neal did not want to talk about it.

This was one of the few highlights of the Pacers' first 13 years in the league—a time in which they had but one winning season and just two playoff appearances.1977–80A lack of year-to-year continuity became the norm for most of the next decade, as they traded away Knight and Buse before the 1977–78 season even started.

They were 5th-worst in the NBA during the 2008-09 season in points allowed.

Despite this, and a 36–46 record, the Pacers had a very strong finish to the season, which included a desperate attempt to steal the 8th seed from the Atlanta Hawks, and dramatic improvement in forwards Danny Granger and Mike Dunleavy.

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