The Orlando Magic gave Paolo Banchero the Rose Rule escalator in his max extension after the Pistons gifted it to Cade Cunningham last year. They felt the need to match the deal Detroit gave to the 2021 first overall selection, but Orlando may regret it if it adds millions to an already sticky financial situation. If Banchero makes third-team All-NBA this season, his contract goes from 25 to 30 percent of the salary cap in the 2026-27 campaign. It could add $48 million to the contract over the five years, which the Magic simply don’t have.
Orlando is projected to be over the second apron with Banchero making just 25 percent of the cap. The Magic haven’t paid the luxury tax since 2010 and have only done it three times since 2002. They face a massive bill for this roster, and it grows even more if their star gets a massive raise.
Banchero is worth every penny of his max contract. The All-Star forward should be even better with Desmond Bane in town, but the Magic need a talented roster around him to contend. That could quickly become problematic as their spending rises.
The Pistons screwed the Magic by giving Cade the Rose Rule escalator
Cunningham had a breakout fourth season where he earned third-team All-NBA and got the bonus. Banchero has arguably been better in his first three years, so the Magic were in no position to deny their star this request. The Pistons set the precedent, and Orlando was forced to match.
The Magic made their own bed by overpaying Franz Wagner and Jalen Suggs in their extensions. Every penny matters in this new apron era. Handing out a max to Franz and giving Suggs $150.5 million put a squeeze on the franchise’s spending. Banchero is the team’s best player, so they were in no position to negotiate now.
Banchero is a top-15 player in the NBA and would have been firmly in the All-NBA mix if he played 65 games last season. Expect him to make one of the three teams in 2026 and earn the extra money. This will force the Magic to cut a hefty salary from their books to stay under the second apron. Banchero deserves the money, but keeping his salary down like the Thunder did with Jalen Williams was the ideal scenario for the franchise.
The Orlando Magic had no leverage after Cade Cunningham got the bump from the Pistons last year. The two number one overall picks will forever be linked, and Orlando has had more success in Banchero’s first three seasons. They had no choice but to pay the freight, and it could create some serious pain in 2026. Such is the price of having a superstar in the NBA.