In 2000, Isiah became the head coach of the Indiana Pacers despite never having coached or assistent coached anywhere at any level (continuing his tradition of doing things he had no training for). The year before he arrived, the Pacers reached the NBA Eastern Conference Finals, losing in Game 7 on the final play of the game. In Thomas' 3 years as coach, the Pacers never made it out of the 1st round of the playoffs, and when Larry Bird returned as President in 2003, his first act was firing Thomas as head coach.

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