The Orlando Magic have secured their franchise cornerstone for at least the next half-decade, signing forward Paolo Banchero to a five-year rookie max contract extension that could reach $287 million, according to ESPN’s Shams Charania.
Banchero is the first player to sign a rookie max extension since 2021, when Luka Doncic and Trae Young reached agreements with their respective teams. Banchero can make up to $49.5 million in the first season of the extension, though that number could rise to as much as $65 million during the final year of the deal in 2030-31.
Breaking: Orlando Magic star Paolo Banchero has agreed to a five-year maximum rookie contract extension that could reach $287 million, Mike Miller of LIFT Sports Management tells ESPN. Deal includes a player option; the first for a rookie max since 2021 (Luka Doncic, Trae Young). pic.twitter.com/bwnCrJbnmu
— Shams Charania (@ShamsCharania) July 7, 2025
Rising Superstar, Rising Franchise
Banchero emerged as one of the league’s top scoring threats in 2024-25 despite missing 36 games with an oblique injury, averaging 25.9 points per game in 46 appearances last season. Had Banchero reached the minimum games threshold, his scoring average would have placed him ninth in the league, just ahead of Devin Booker (25.6 points per game) and an eyelash behind eighth-ranked Jalen Brunson’s 26.0 points per game.
Orlando spent the offseason building around Banchero with the expectation that the team will contend for an NBA Finals appearance as soon as this season, especially with two of the most pivotal stars in the Eastern Conference already sidelined with season-ending Achilles injuries in 2025-26
Going For It
Banchero’s contract is not only a commitment to the franchise’s best player, it’s also a commitment to the investment required to be a serious contender. Due to the installation of the NBA’s tiered apron tax system, small-market teams like Orlando are now on a level enough financial playing field to justify the costs of competing for a championship.
Breakdown of the Paolo Banchero rookie max extension pic.twitter.com/Gtr1ScUZuo
— Bobby Marks (@BobbyMarks42) July 7, 2025
The Magic traded Kentavious Caldwell-Pope, Cole Anthony and four first-round picks to Memphis in exchange for a pivotal 3 & D specialist in Desmond Bane in what was still the most pivotal move of the offseason to this point. Orlando also acquired point guard Tyus Jones in free agency and drafted Jase Richardson, Jason’s son, 25th overall in last month’s NBA draft.
Orlando went 41-41 this past season, suffering its second consecutive first-round playoff exit after making the field as the No. 8 seed through the play-in tournament. The Magic earned the fifth seed in the Eastern Conference with a 47-35 record in 2023-24, the team’s best season since they won 52 games in the last full season of the Dwight Howard era in 2010-11.
