Paolo Banchero, Magic Agree to 5-Year Max Rookie Contract Extension Worth Up to $287M

The Orlando Magic made Paolo Banchero their franchise cornerstone when they selected him with the No. 1 overall pick of the 2022 NBA draft, and they further committed to him on Monday with a new contract.

Orlando and the forward agreed to a new five-year max rookie contract that could reach $287 million, agent Mike Miller told ESPN's Shams Charania:

Banchero reacted to the news on social media:

This comes after the Magic previously exercised club options for the 2024-25 and 2025-26 seasons. He was also set for restricted free agency for the 2026-27 campaign prior to this new contract, and the uncertainty that would have come from that situation is now over.

Instead, Banchero and the Magic can focus on contending in the Eastern Conference for years to come with the contract situation taken care of following this development.

And it comes as no surprise that Orlando wanted to keep the Duke product as the focal point of its present and future.

After all, Banchero wasted no time making an impact at the NBA level as the Rookie of the Year in 2022-23. He averaged 20.0 points, 6.9 rebounds and 3.7 assists during that first season and then built on that as a first-time All-Star in his second season.

It set the stage for what figured to be another excellent season in 2024-25, but he missed significant time with an oblique injury and was sidelined for the entirety of November and December before returning for a Jan. 10 game against the Milwaukee Bucks.

Banchero picked up right where he left off and poured in 34 points in that game to set the stage for yet another excellent individual season.

He averaged 25.9 points, 7.5 rebounds and 4.8 assists while shooting 45.2 percent from the field and 32 percent from deep during the 2024-25 campaign. Orlando dealt with a number of injuries throughout the season, but Banchero's return and presence in the lineup helped it reach the playoffs.

Perhaps the best thing about this contract from Orlando's perspective is that Banchero is just 22 years old.

He has already established himself as an All-Star, go-to scorer and elite playmaker through his first three seasons in the league and likely hasn't reached the peak of his potential at this stage of his career.

And now those peak years are far more likely to happen in Orlando after Banchero and the Magic agreed to terms on a new contract.