For the 2008–09 season, Tinsley was replaced in the starting lineup by point guard T. J. Ford. O'Brien and Pacers' President of Basketball Operations Larry Bird told Tinsley he would not play for the Pacers again and would be traded as soon as possible, then shipped his personal items to Tinsley's home in Atlanta. Tinsley then requested a contract buyout through his agent. Because of the situation where Indiana's insistence on trading and not outright waiving Tinsley meant that no other team offered Indiana anything of value to acquire him (knowing that the Pacers would eventually have to part ways with Tinsley and then he could be picked up at no cost), the NBA Players Association filed a grievance against the Pacers on Tinsley's behalf on February 11, 2009. On July 22, 2009, the Pacers waived Tinsley.