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Surveying Orlando Magic’s cap room for 2017

By Philip Rossman-Reich

May 23, 2016; Orlando, FL, USA; Orlando Magic Head coach Frank Vogel and general manager Rob Hennigan pose for a photo during the press conference at Amway Arena. Mandatory Credit: Kim Klement-USA TODAY Sports
May 23, 2016; Orlando, FL, USA; Orlando Magic Head coach Frank Vogel and general manager Rob Hennigan pose for a photo during the press conference at Amway Arena. Mandatory Credit: Kim Klement-USA TODAY Sports /
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The Orlando Magic spent a lot this summer hoping to reform the team and make the Playoffs. In 2017, they maintained flexibility no matter what happens.

The NBA is a game of chess.

What happens on the court is paramount, but there is always an eye toward the future in some way. How teams approach the season and build their teams is dependent on their needs. Not every team can go all in on the season to win a title. There remains an eye toward the future.

The Magic are in a weird spot. They are trying to win this year. It is perfectly and abundantly clear they are pushing all in to make the Playoffs in 2017. But not completely all in.

Orlando has said throughout these four years that it is trying to build a sustainable winning team. That means keeping flexibility to make major moves, dealing out shrewd contracts the team can easily get out of or are bargains that can return some value. The Magic have been smart with how they manage the cap in many ways. Their misses — like the front-loaded Channing Frye contract — were not killers. There was always an out.

The Magic’s strategy changed a bit this summer. The desire to make the Playoffs took over and the team began clearing cap room to transform the team in free agency. An opportunity to take a trade by cashing in a core member of the Magic’s team built through the draft came around and the Magic took the chance.

Orlando saw an opportunity and had an extreme desire to jump up from 35 wins into true Playoff contention. But the team could not commit fully to it. The team had to keep some flexibility to get better. Getting into the playoffs is not the end goal, just a short-term stop along the way.

The Magic spent their money. They are over the $94 million salary this year by about $10 million. Orlando is not paying the luxury tax. But the Magic will be over next year’s projected cap of $102 million if they keep everyone.

But they still have some flexibility. The Magic have roughly $38.7 million in expiring contracts and partially guaranteed deals they could clear without making any additional moves (not including cap hold).

In terms of real cap room, Eric Pincus of Basketball Insiders projects the Magic to be able to clear a maximum of $29.3 million in cap room next year. With $54.5 million in guaranteed salary for the 2018 season, and then adding in the $18.4 million cap hold for Serge Ibaka, the Magic’s cap number for the summer of 2017 is $72.9 million. This is where the $29.3 million in room comes in.

That would be enough cap space to sign a max free agent if the salary cap projections remain in place.

Orlando could be another big player in free agency next summer. And if the team makes the Playoffs and shows promise that could make the Magic players again — never mind that Elfrid Payton and Aaron Gordon both become restricted free agents following the 2018 season.

And the Magic can still use a lot of those expiring contracts — along with Nikola Vucevic or some other player on the roster that might have value — in trades during the season to improve the team.

This flexibility is important to keep in mind and to have.

The Magic pushed all in to make the Playoffs this season with their free agency moves. But they have kept themselves open for another pivot in the future. There was no scorched earth.

If the Magic make the Playoffs in 2017, they will have the ability to add to the roster. If the Magic need to add pieces and players before the trade deadline, they have some movable contracts to do that.

If the Magic fail to make the Playoffs in 2017, regardless of what the team does with the front office, they can still pivot quickly. They should not be stuck with a bad roster. There will still be opportunities to improve the roster and make another Playoff push in 2018.

Next: Serge Ibaka, Orlando Magic can help each other

That all may seem too far into the future. The 2017 season has not even taken place yet. But that financial flexibility will be key for the Magic as they try to build that sustainable winner they are seeking. Regardless of how the 2017 season plays out.