Examining Magic's Salary Cap, Decisions for 2024 NBA Free Agency After Playoff Loss

The Orlando Magic made it back to the postseason for the first time since 2020. While Orlando wasn't exactly loaded with superstars, players like Paolo Banchero, Franz Wagner and Jalen Suggs helped create a strong defensive team with postseason potential and a bright future.

What the Magic didn't do was go all-in at the trade deadline, choosing instead to see how far this group could go. It was a calculated decision by head coach Jamahl Mosley and general manager Anthony Parker, who likely had eyes on the 2024 offseason.

It felt, at the time, like Orlando was building the foundation of a perennial contender but not quite ready to get aggressive in the talent chase. Roster moves should be incoming this summer, though, because the Magic have shown that they're ready to be an Eastern Conference factor.

Now that Orlando's postseason run has ended, Mosley and Parker can get to work planning the next stage of the franchise's development.

Here, we'll examine the Magic's salary cap outlook, top impending contract decisions and some potential top targets for 2024 free agency.

Orlando is in a decent position heading into the offseason, with 11 players under contract, including Banchero, Suggs, Wagner, Jonathan Isaac and Cole Anthony.

The Magic have a club option with forward Joe Ingles.

With $19.1 million in projected practical cap space, the Magic should also have some financial flexibility. Orlando is in no real danger of approaching the luxury tax's second apron, which is a big financial threshold under the new collective bargaining agreement (CBA).

Under terms of the new CBA, teams over the second apron cannot aggregate contracts to trade for a single player, send out cash in trades, use trade exceptions from previous years, or take back more salary than they send in a trade

We'll have to see how aggressive Parker and the Magic get this offseason, but if Orlando wants to pursue talent in the free-agent and trade markets, it can.

One of Orlando's big decisions will involve 2017 first overall pick Markelle Fultz, who was acquired in 2019. Fultz has never quite lived up to his draft status, and he settled into a reserve role after battling a knee injury earlier in the season.

Fultz has flashed promise at times, but the 25-year-old probably won't be a big offseason priority. He earned a base salary of $17 million this past season, and while the injury played a role, he simply didn't provide appropriate value.

Orlando will also have to make a decision on Ingles, who was an effective role player this past season. However, exercising his club option would result in paying a base salary of $11 million. Depending on their free-agent and trade plans, the Magic could value the potential cap savings more than Ingles' contributions.

Wagner and Suggs will also be eligible for contract extensions this summer. Locking up either or both would impact Orlando's future flexibility—and Banchero will be extension-eligible next summer—but it would be logical. The pair aren't bona fide stars yet, but both are developing into cornerstone players for the Magic.

The fact that Orlando's core is both solid and young is why the franchise's future should be considered bright. It's also why the Magic may choose this summer as the time to start adding veteran talent and really chasing a title. The bill for the impending extension will eventually come due.

Along with Fultz, Gary Harris, Goga Bitadze and Bol Bol are set to become unrestricted free agents.

Orlando is poised to be one of the most interesting teams of the 2024 offseason. It has cap space and some notable needs—including those of a playmaking point guard, a high-end center and more shooting help.

Philadelphia 76ers guard Buddy Hield could wind up on Orlando's radar, as he's frequently been linked to teams in need of shooting help over the past few seasons. The Indiana Pacers finally traded Hield in February, and the 31-year-old will be a free agent this summer.

The Magic could also eye Klay Thompson, if the Golden State Warriors decide not to retain him in free agency. Thompson isn't the same player at 34 as he was early in his career—and injuries will remain a concern—but he can still provide valuable range shooting in the right role.

Sacramento Kings shooting guard Malik Monk is another solid shooter to consider, and the 26-year-old might fit better with Orlando's long-term vision.

Finding a high-end starting point guard or center will be more difficult. However, Orlando has the capital to make a strong offer or two, and some quality players will be available.

The list includes Los Angeles Clippers point guard James Harden, Los Angeles Lakers point guard D'Angelo Russell (player option), New Orleans Pelicans center Jonas Valanciunas and New York Knicks center Isaiah Hartenstein.

Orlando will likely intrigue players because of the presence of Banchero, Wagner and Suggs. The Magic's window only just opened, and there exists the potential to become a perennial contender.

Not every NBA team will be in a position to go star-chasing this offseason, but Orlando is. Expect the Magic to make a splash in the coming months.

*Cap and contract information via Spotrac.