NBA Trade Report: Paolo Banchero signs five-year $239 million extension with the Orlando Magic

The Orlando Magic have locked in one of their star forwards and key players, Paolo Banchero, who has committed to the team for the foreseeable future by agreeing to a five-year maximum-salary contract extension worth $239 million.

According to reports, Banchero’s deal is the most expensive in Magic franchise history. The contract will begin in the 2026–27 season and run through the 2030–31 season, including a player option for the final year.

Orlando’s President of Basketball Operations, Jeff Weltman, confirmed the development in a statement to the media:

“We are thrilled to keep Paolo (Banchero) in a Magic uniform for years to come. At just 22, he has won NBA Rookie of the Year, been named an NBA All-Star and is widely regarded as one of our league’s brightest young stars.

This commitment reflects our belief in Paolo’s talent,… pic.twitter.com/gaWUFC5Vj1

— Orlando Magic (@OrlandoMagic) July 8, 2025

“We are thrilled to keep Paolo Banchero in a Magic uniform for years to come. At just 22, he has won NBA Rookie of the Year, been named an NBA All-Star, and is widely regarded as one of our league’s brightest young stars. This commitment reflects our belief in Paolo’s talent, character, and desire to win at the highest level. It also reflects Paolo’s belief in our organization, our fans, and the city of Orlando. We are excited to continue this journey together.”

The contract includes incentives that could raise its value to $287 million if Banchero wins the NBA Most Valuable Player (MVP) award, Defensive Player of the Year, or is named to any of the All-NBA teams (First, Second, or Third) during the 2025–26 season.

Since being drafted by the Magic as the first overall pick in the 2022 NBA Draft, Banchero has established himself as the franchise cornerstone. He averaged 25.9 points, 7.5 rebounds, and 4.8 assists per game in 46 appearances last season, despite missing two months due to an oblique injury. The star forward elevated his game in the playoffs, posting averages of 29.4 points and 8.4 rebounds per game, though the Magic were eliminated in the first round.

Banchero joins elite company as one of only three players—alongside LeBron James and Luka Dončić—to record at least 4,000 points, 1,300 rebounds, and 900 assists before turning 23.

With this extension, the Magic have solidified their young core, which includes Franz Wagner, Jalen Suggs, and Desmond Bane, all under contract through at least the 2028–29 season.

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