Examining Magic's Salary Cap, Decisions for 2025 NBA Free Agency After Celtics Loss

The Orlando Magic made the postseason for the second straight year. While Orlando's campaign didn't end the way the team had hoped, Jamahl Mosley's squad navigated an injury-plagued season well enough to see some playoff basketball.

Paolo Banchero, Franz Wagner and Jalen Suggs all missed time this season, and Suggs underwent season-ending knee surgery in early March. Largely because of those injuries, Orlando never felt like a serious threat in the Eastern Conference.

Now that the Magic's season is officially over, it's time for Mosley and general manager Anthony Parker to start preparing for the looming offseason. While Orlando can certainly hope to have a healthier roster next year, it has roster issues to address too.

Here, we'll examine Orlando's salary cap situation, top contract decisions and potential targets for 2025 free agency, which will officially open on July 6.

Unfortunately for Mosley, Parker and team president Jeff Weltman, the Magic won't have as much financial flexibility as in past years. The extensions of Suggs and Wagner are set to kick in this summer, which will raise Orlando's payroll significantly.

The Magic are currently projected to be $3.4 million over the first luxury-tax apron and only $8.5 million below the second apron. If Orlando can't stay below the second apron, it will face significant restrictions, like the inability to aggregate contracts in a trade or take back more salary than it sends in a trade.

The good news is that Orlando is set to have most of its players under contract, including Suggs, Wagner, Banchero, Kentavious Caldwell-Pope, Cole Anthony and Wendall Carter Jr.

The Magic also have a little wiggle room under the second apron, though that could quickly change, depending on the in-house contract decisions that are made in the coming months.

The Magic don't have any players scheduled to become unrestricted free agents, and two-way player Mac McClung is the team's only impending restricted free agent.

However, Orlando has upcoming team options with Moritz Wagner, Cory Joseph and Caleb Houston. Additionally, the Magic may need to navigate a new deal with Banchero, who will be extension-eligible this offseason. His next deal should be a large one.

The first overall pick in the 2022 draft, Banchero was the Rookie of the Year in his first season and an All-Star in his second. While hampered by injuries this season, he's remained a top-tier player when healthy.

Bleacher Report's Eric Pincus predicted a five-year, $246.7 extension for Banchero back in September.

The trio of Franz Wagner, Suggs and Banchero is about to be very expensive, though the Magic are far more likely to retain their centerpiece players than trade away a star for cap relief—it's just too hard to envision a balanced return.

Expect Orlando to make tweaks to the fringes of its roster rather than its core.

Fans probably shouldn't expect Orlando to go star-chasing in free agency this offseason. The Magic's cap situation is less than ideal, and this isn't perceived as a particularly strong FA class.

Bleacher Report's Eric Pincus compiled a list of the top 30 projected free agents back in February. Of his top 10 players, only Myles Turner and Brook Lopez are set to be fully unrestricted free agents—restricted free agents and those with player or team options dominate the top of the list.

Orlando could use a quality ball-handler in its point-guard rotation, and it desperately needs to improve its range shooting. However, making a run at Kyrie Irving or James Harden—both have player options—probably isn't realistic.

Phoenix Suns point guard Tyus Jones is probably the top realistic target for the Magic. Emerging 22-year-old star Josh Giddey is another option, though he's set to be a restricted free agent and will likely be retained by the Chicago Bulls.

For pure shooting help, Orlando will likely want to target more budget-friendly options like Malik Beasley or Dennis Schröder.

With an already full roster, the Magic will probably make few free-agent or trade additions. Orlando is far more likely to add a role player or two and use its four 2025 draft picks to further augment the depth chart.

*Cap and contract information via Spotrac.