The Indiana Pacers traded their first-round selection in next week's NBA draft -- the No. 23 pick -- to the New Orleans Pelicans and reacquired their own first-round pick in 2026, the teams announced Tuesday.

The Pelicans also received the rights to former Indiana G League player Mojave King, while the reigning Eastern Conference champion Pacers gained additional financial flexibility entering the offseason.

The trade clears out nearly $3.2 million in salary cap space for the Pacers, who now possess their own first-round pick in seven consecutive drafts starting in 2026.

The Pacers are projected to enter the offseason about $20 million below the luxury tax and well beneath both cap aprons.

The Pacers initially sent their 2026 pick to the Raptors last season as part of their trade to acquire Pascal Siakam. Toronto then dealt the pick to New Orleans earlier this season as part of the Brandon Ingram trade.

The Pelicans now own two picks in the first round -- Nos. 7 and 23 -- of the June 25-26 draft.

King, 23, was a second-round pick in 2023 and last played in the G League in 2023-24, when he appeared in 15 games with the Indiana Mad Ants. He played professionally this past season in Puerto Rico and his native New Zealand.

The Pacers, who are playing in the NBA Finals for the first time since 2000, will return most of the core of their current roster with the possible exception of center Myles Turner, who is set to become an unrestricted free agent.

The Pacers trail the Oklahoma City Thunder 3-2 in the best-of-seven NBA Finals. Game 6 is Thursday in Indianapolis.