Indiana Pacers President Donnie Walsh is stepping down following several years of dust-ups involving players, and faltering team performance.

Larry Bird, president of basketball operations, is staying on to operate the franchise.

The announcement came this afternoon in a news conference at Conseco Fieldhouse attended by co-owner Herb Simon.

The 67-year-old Walsh has been president since 1988. He arrived two years earlier as general manager.

Indiana is last in the NBA in attendance for 2008, with an average of about 12,000 fans for home games. More fans watch Pacers games when the team hits the road; the team’s road-attendance average is more than 17,000.

This story will be updated at www.ibj.com.