A Shams Charania tweet shocked the NBA world on Sunday morning as Desmond Bane was traded to the Orlando Magic for Kentavious Caldwell-Pope, Cole Anthony, four first-round picks, and a pick swap. Following the trade, the Magic now have four players earning more than $30 million in the 2026-27 season.
With Paolo Banchero up for an extension next season, he is expected to sign a max contract and will be earning in the range of $42.5 million to $51 million in 2026-27. In July of 2024, Franz Wagner signed a contract extension and will be earning $41.8 million in 2026-27. Jalen Suggs also signed an extension last season in October and will be earning $32.4 million in the season after the next one. Including Bane’s $39.5 million expected paycheck in Orlando’s salary cap, the Magic are potentially looking at a massive payroll two seasons later.
The Magic aren’t only investing in draft equity. It’s a major investment in their payroll and beyond.
Franz Wagner: $41.8 million
Desmond Bane: $39.5 million
Jalen Suggs: $37.4 million
Paolo Banchero’s expected max: $42.5-$51 million
2026-27 payroll and tax could exceed $350…
— Yossi Gozlan (@YossiGozlan) June 15, 2025
According to Yossi Gozlan of the Third Apron Podcast, the Magic will have a projected payroll of $236,615,617 in the 2026-27 season. This will put them in the second apron. Therefore, the league will look to impose a $91,472,599 luxury tax on the Magic during that season.
Orlando Magic 2026-27 payroll projection if Paolo Banchero gets a maximum extension and hits the criteria for the higher salary worth 30 percent of the salary cap.
They could lower their penalty and get below the second apron by moving off some mid-level salaried players. https://t.co/ycM62YePiN pic.twitter.com/EiVPJgVJeN
— Yossi Gozlan (@YossiGozlan) June 15, 2025
While his estimates suggest a $328,088,216 expense for the Magic in that season, variable factors like the estimated salary of players he included in his computations give room for an error of $15-20 million in both directions. Hence, the Magic may potentially look at a $350 million bill to pay during the 2026-27 season.
Why Orlando Magic Traded Kentavious Caldwell-Pope For Desmond Bane
Last season, after Kentavious Caldwell-Pope opted out of his player option with the Nuggets, the Magic outbid the Nuggets to sign him on a three-year, $66 million deal. However, in his first season with the Magic, the 32-year-old did not play like a player who deserves $22 million a year in the NBA.
Kentavious Caldwell-Pope averaged 8.7 points, 2.2 rebounds, and 1.8 assists in 77 games this regular season. While his defensive skills were still a menace to the opposition, the aging veteran also did not fit the timeline with the rest of the young roster. He is seven years older than the average age of his teammates (25) and thus likely became the first candidate out the door in the Bane deal.
Caldwell-Pope managed to win two championships before arriving in Orlando. He was supposed to be the veteran on this team who teaches the young players what to do. But it seems Caldwell-Pope was unable to do that, neither by words nor by example. What is concerning for the Magic in his absence is that they have now given away the best defender on their team, and Bane is nowhere close to being as good on defense as Caldwell-Pope was. It will be interesting to see what the near future looks like for the Magic next season.
