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Report: Larry Bird won't return next season as Pacers president

By Royce Young | NBA writer
Larry Bird has been flirting with stepping down from his post as president and general manager of the Pacers for some time. He appeared to be ready to let go last season, but came back once again to help hire a new coach and continue the rebuild that was underway.

But according to the New York Post, Bird is stepping down after this season.
Larry Bird's head-faking, bed-unmaking, Dwight Howard imitating stretch as Pacers president is coming to a conclusion at season's end regardless of how the 26-18 team finishes, maintains someone very much in the know.

“He has definitely decided not to return,” the source asserted.

Bird was hired by the Pacers six seasons ago to run their front office, after coaching the team at one point for a few years.

Ken Berger of passes this along though:
The idea that Bird would step down at some point has been discussed internally, but Bird has not informed key members of the organization that he's made a decision, according to sources. Bird's future, and the resulting front office structure if he leaves, have always been on the agenda for discussion after the season.
As for a replacement, according to the report, owner Herb Simon is more likely to look at a marquee name like Chris Mullin or even Pacer legend Reggie Miller rather than promote general manager David Moray or personnel director Kevin Pritchard. There is already some speculation Donnie Walsh could have his name in the ring, as he was once the Pacers GM, but isn't as close to Simon anymore, according to the report.
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