By Candace Buckner

candace.buckner@indystar.com

The Indiana Pacers — leading the race for the No. 1 seed in the Eastern Conference and emerging as a showcase team in the league — still have flaws. This observation according to Larry Bird, the team's president of basketball operations.

On the eve of the Pacers' nationally-televised matchup against the New York Knicks, Bird on Wednesday offered his honest assessment about the team that he helped build into a 30-7 contender. Though Indiana has the best record in the NBA as the regular season approaches the midway mark, Bird believes that the team's bad habit of sloppy ball handling could prove costly when the games matter the most.

"Turnovers," said Bird, answering quickly on what the team can still improve. "Turnovers will be their downfall. If they go down this year, it will be because they turn the ball over too much."

The Pacers average 15.8 turnovers per game, which ranks near the bottom of the league, according to the statistical website teamrankings.com. In the last two losses against Atlanta (Jan. 8) and Toronto (Jan. 1), Indiana blew past its average by committing 20 and 23 turnovers, respectively.

New York leads the NBA with the fewest turnovers with 12.6 per game. In spite of their slow start, the Knicks (15-23) have won six of their last 10 games before renewing a once-dormant rivalry with the Pacers that found fresh legs last year when Indiana defeated New York in six games in a Eastern Conference second-round playoff series.

"We've talked about turnovers all the time," Bird said, "and if they're going to get into the playoffs and turn the ball over 20 times, it's going to put them in a big disadvantage."

Beyond taming the turnover gremlin, Bird has also labeled another area for improvement.

"One of the problems with this team, we dribble too much. Guys dribble too much," Bird said. "The pass is always going to get there a lot quicker than dribbling through there, and they haven't really figured it out yet.

"If you're going to win big time in this league, you can't be standing out there pounding that ball, getting the shot clock down to 14 seconds every time."

The Pacers do not run an offense with a traditional point guard and, as a result, several possessions are entrusted to small forward Paul George and shooting guard Lance Stephenson. George ranks among the leaders in the league with an average of 71.5 touches per game, according to NBA.com. Also Stephenson, who razzles and dazzles among the starters but also facilitates from the second unit, leads the Pacers with 5.2 assists per game. While they perform as talented playmakers, Bird believes that both must limit their dribbling.

"Lance does it way too much. He can take a guy off the dribble and make a play for somebody every time. He (doesn't) need to be out there pounding," Bird said. "Paul George pounds it. Get where you're going, make the pass, it'll probably swing back to you then you'll get your pick. You'll be able to get in the lane and make a play."

However, the boss wasn't all critical. As Bird sat in the stands at Bankers Life Fieldhouse on Wednesday, he also expressed how he delights in watching this team.

For every home game, Bird watches from his corner chair in Section 2. He sits near General Manager Kevin Pritchard and Donnie Walsh, now serving as a consultant on the executive staff. Bird rarely reacts to the emotions of the game — no grins or grimaces — but understands that he's witnessing a special season unfold.

"Obviously, I'm happy for this group of guys," Bird said. "That's why I'm probably more happy than anything, and they're having success.

"When I sit up here and when I watch, I pull like hell for them. I get nervous before games and stuff. I've been around this a long time. I expect them to win every night out…"

Then Bird, overhearing a "Brooook-lyn!" chant started by teammates to encourage Lance Stephenson's spot-up 3-point shooting during a post-practice drill, switched his thoughts and once again, surveyed his still unfinished product.

"We're still trying to improve as a team. I do know (and) sense when they might not play well," Bird said. "They're a little loosey goosey today. They have been all day but this game (Thursday) night, the crowd will get them through it because this crowd will be on edge tomorrow night because it's on TNT and Reggie (Miller)'s going to be here. And our fans — when they get on edge, it just brings a little bit more to these guys."

Call Star reporter Candace Buckner at (317) 444-6121. Follow her on Twitter: @CandaceDBuckner