When talking with reporters covering the Boston Celtics during the Orlando Magic's first-round playoff series, there was already a sense that this could be their last chance to win a title.
Reporters were pitching me Jrue Holiday trades as they sensed that the Celtics would have to part with the veteran guard. They thought he might fit with the up-and-coming Magic.
It seemed inevitable. The Celtics just had to hope they could get another title before their finances caught up with them.
Their series loss to the New York Knicks and the injury to Jayson Tatum that will likely cost him the entire 2026 season put those financial questions in greater focus for Boston.
The deconstruction of the Boston Celtics began late Monday night with the trade of Jrue Holiday to the Portland Trail Blazers for Anfernee Simons. It continued Tuesday with the trade of Kristaps Porzingis to the Atlanta Hawks as part of a three-team deal.
By some estimates, the Celtics went from a team deep in the second apron, and all of its massive restrictions, to nearly under the luxury tax. By shedding nearly $30 million in salary, Boston saved $196 million in repeater tax payments to the NBA.
Boston might have taken itself out of title contention, but by saving this much money, the team has positioned itself to bounce back when Tatum returns.
It is the kind of gymnastics and somersaults that teams in the second apron must do. It is the reason why the collective bargaining agreement signed in 2023 made everyone expect keeping great teams together would become too difficult and dynasties would be a thing of the past.
It is the same reason the Magic had to make their move for Desmond Bane now. They are about to become expensive enough to flirt with the second apron and all of its restrictions -- not being able to aggregate contracts and the potential for the league to freeze draft picks to prevent further trades.
Orlando is wading into deep waters.
"We put our foot on the gas here," Magic president of basketball operations Jeff Weltman said after acquiring Bane. "That train was coming for everybody, and we probably skipped a station here. I hope that our team is good enough to merit where the finances will take us. The DeVoses are committed to this team. You talk about showing that. The DeVos family wants to give this city a winner so badly. This trade is proof of that."
The Magic are a tax team and more now
The Orlando Magic are almost guaranteed to pay the luxury tax for the first time since 2012. And the team will likely be a tax team for the foreseeable future.
It is almost assured the Magic will be a second-apron team for the 2027 season after Paolo Banchero signs his anticipated max extension.
What the Celtics are doing this offseason could happen to the Magic much sooner than anyone thinks. They just have to hope they win a title before they have to break their team apart.
As things stand entering this season, the Magic have $177.2 million in guaranteed salary for the 2026 season. That does not include team options for Moe Wagner ($11 million) and Caleb Houstan ($2.2 million). It puts the Magic $10.7 million below the $187.9 luxury tax line.
Orlando is expected to do that to gain access to the non-taxpayer mid-level exception or taxpayer mid-level exception to add players in free agency. Using the non-taxpayer mid-level exception would hardcap the Magic at the $195.9 million first apron.
Orlando is walking a very narrow tightrope already.
The Magic will be above the aprons soon
But that does not get into the depth the Orlando Magic will sink into already for the 2027 season.
The Magic have $139.3 million in guaranteed salary for the 2027 season. Paolo Banchero's extension will be worth an estimated $42.5 million if he does not make All-NBA and $51.0 million if he makes All-NBA.
Adding in likely team options for Anthony Black ($10.1 million) and Tristan da Silva ($4.0 million) and the Magic's guaranteed payroll for the 2027 season is already $195.9 million if Banchero does not get the supermax or $204.4 million if he does receive the supermax.
That puts the Magic already over the expected $170.1 million luxury tax line. The first apron is expected to be at $215.5 million next season, and the second apron is expected to be at $228.6 million.
The guaranteed total for the Magic above does not include the salary for the 25th pick in this year's Draft (roughly $3 million) or Jonathan Isaac's $14.5 million guaranteed salary. That alone would take the Magic over the second apron. And that is before adding in any free agents the Magic sign this summer.
The aprons seem unavoidable.
Orlando was clearly willing to dip its toes into this territory to maintain a roster it believes in. The Magic mortgaged all of its draft capital in the next five years, believing in what they were building. The Magic are not likely to abandon this team and this idea any time soon.
But if the Magic are not able to win and win big, they could quickly reset and do what the Celtics have done to cut payroll, cut tax payments and regain flexibility to reset the roster.
Jeff Weltman said the salary cap comes for everyone. The Magic dove headfirst into those waters.