Potential $350 Million Bill Awaits Orlando Magic Following Desmond Bane Trade: Luxury Tax, Salary And More

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. 

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.