Orlando Magic's Limited Cap Space Leaves More Questions Than Answers

Many teams around the league feel the financial burdens of a post-season-caliber roster, and the Orlando Magic are no exception. Orlando's successful construction of a talented young core has propelled it into the playoff landscape. Now, the organization's wallet is about to get tighter.

Recently, The Athletic observed Orlando's financial situation. It has the Magic staying below the second apron, but restricted to bird rights and league minimums in free agency.

"Orlando is close to the luxury tax even without counting team options for Moe Wagner and Gary Harris, so the front office faces some tough but manageable problems," the article read. "Paolo Banchero's raise comes in 2026-27, and that makes the Magic significantly more expensive moving forward. Do not expect a ton of new long-term commitments unless they take a big swing trying to add an offensive difference-maker after a disappointing season."

With an expectation of a 10 percent increase in the salary cap, other thresholds such as the luxury-tax line, the first apron threshold and the second apron will also increase slightly.

Orlando will have to sacrifice a key member of its young core to take a big swing in free agency. President of Basketball Operations Jeff Weltman is in a "win-now" mindset, but is the front office willing to part with an integral piece of the roster?

Chances are that Paolo Banchero is untouchable, but what about Franz Wagner and Jalen Suggs? Regardless of the result, the organization has decisions to make this summer.

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