In the 2003 offseason, the Pacers managed to re-sign O'Neal for the NBA maximum and inked Reggie Miller to a modest two-year deal, but they couldn't afford to keep their talented center, Brad Miller. He was dealt to the Sacramento Kings in exchange for Scot Pollard, who spent much of the following year watching from the bench and backing up Jeff Foster. But the Pacers signed Larry Bird as team president, and Bird wasted little time in dismissing coach Isiah Thomas and replacing him with Rick Carlisle.

The Pacers responded to Carlisle extremely well, and had a breakthrough 2003-04 season in which they finished 61-21, earning the best record in the NBA. O'Neal and Artest made the All-Star team, and Artest was named the NBA's Defensive Player of the Year.

The Pacers swept the Boston Celtics easily in the first round, and squeezed by a scrappy Miami Heat team in the conference semifinals. But the Detroit Pistons proved an impediment to Indiana's championship aspirations, as they defeated the Pacers in six games on their way to the NBA Championship.

Al Harrington, a small forward who'd established himself as one of the best sixth-men in the NBA, was dealt in the offseason to the Atlanta Hawks in return for Stephen Jackson after Harrington allegedly demanded that the Pacers start him or trade him. Nevertheless, the Pacers started off the 2004-05 season in extremely strong fashion-- until the infamous events of November 19, 2004.

Towards the end of a Pacers victory over the Detroit Pistons at the Palace of Auburn Hills, Ron Artest committed a hard foul against the Pistons' Ben Wallace, which Wallace took exception to. It escalated to a full-scale brawl, with fans and members of both teams taking part. Pistons fan John Green threw a cup of beer at Artest, causing him to charge into the stands. Stephen Jackson and Jermaine O'Neal both got into fights with fans before the Pacers left the floor, and the game was called with 46 seconds left on the clock.

Several of the involved players were suspended by NBA Commissioner David Stern, but the hardest hit were Artest (suspended for the remainder of the regular season and playoffs), Jackson (suspended for 30 games), O'Neal (25 games), Wallace (6 games) and the Pacers' Anthony Johnson (5 games). (O'Neal's suspension was later reduced to 15 games by arbitrator Roger Kaplan, a decision that was upheld by U.S. District Judge George B. Daniels.) O'Neal was charged with two counts of assault and battery, while Artest, Jackson, Johnson and David Harrison were charged with one count each.

The addition of Stephen Jackson gives the Pacers the perimeter scorer they needed to complement Jermaine O’Neal and replace Reggie Miller. However, a player more capable of being a primary scorer was necessary to compliment the lesser O’Neal whose offensive game has plateaued at 20-21 ppg. Nevertheless, Jermaine O’Neal, Ron Artest and Stephen Jackson are a formidable defensive troika that will keep Indiana near the top of the Conference. Ray Allen would have been a perfect fit for this team.