Report: Orlando Magic, Paolo Banchero agree to five-year extension, could reach $287 million

Orlando Magic forward Paolo Banchero has agreed to a five-year maximum rookie contract extension that “could reach $287 million,” according to ESPN’s Shams Charania. The includes a player option for the 2030-31 season — the first for a max rookie extension since 2021.

“This cements the Magic core of Banchero, Franz Wagner and Jalen Suggs now all under contract for the next five years,” Charania wrote on X. Both Wagner and Suggs signed his contract ahead of the 2024-25 season. The Magic appear all-in on winning now.

With this core, Orlando finished 41-41, making the play-in and eventually fitting in as the No. 7 seed in the Eastern Conference playoff picture. However, their season ended after suffering defeat in five games to the then-defending NBA champions, Boston Celtics.

Banchero’s extension is the latest move for Orlando this offseason, who last month traded for Desmond Bane while offloading Kentavious Caldwell-Pope, Cole Anthony, four unprotected first-round picks and one first-round pick swap to the Memphis Grizzlies. They later selected Jase Richardson from Michigan State with the No. 25 overall pick in the 2025 NBA Draft.

This past season, Banchero averaged a career-best 25.9 points per game, including 7.5 rebounds and 4.8 assists on average. He played his best basketball after the All-Star break, inflating his scoring average to 29.0 points per game.

The 2024-25 season was Banchero’s third since joining the NBA as the Magic’s No. 1 overall pick in 2022. While he’s only been with the organization for a short period of time — the former Duke star has made his mark on the team’s history books.

In three seasons, Banchero has logged 4,432 career points. That’s third-best all-time in Orlando history behind Shaquille O’Neil and Penny Hardaway. He’s also a former rookie of the year and earned his first NBA All-Star bid in 2024. Now, he has a contract to match his accolades.

Banchero’s maximum extension includes a player option, which is the first for an NBA rookie deal since both Trae Young and Luka Doncic agreed to contract extensions for the Atlanta Hawks and Dallas Mavericks during the 2021 offseason.

The future appears to be bright in Orlando for Banchero and company as the team appears to be a legitimate threat in a wide-open Eastern Conference next season. With their young stars locked down with long-term deals, the Magic have reset public expectations for their organization. Only time will tell how that pans out.