Examining Magic's Salary Cap, Decisions for 2026 NBA Free Agency after Pistons Loss
For the third straight season, the Orlando Magic made it to the postseason. For the second straight year, though, they entered as a play-in team.
Orlando entered the season with high expectations and a strong core comprised of Paolo Banchero, Jalen Suggs, Franz Wagner, and offseason addition Desmond Bane. However, injuries were once again an issue for the franchise, and the Magic barely secured one of the top two play-in spots.
While Orlando finished above .500 and had to be taken seriously in the playoffs, it never felt like a legitimate threat in the East.
The Magic did take a 3-1 lead in its best-of-seven series over the No. 1 seed Detroit Pistons in a valiant upset attempt, but the favorites won three straight to take the matchup, capped by a 116-94 win in Game 7.
Now that Magic's postseason has ended, it's time for head coach Jamahl Mosley and general manager Anthony Parker to start preparing for next season. Here, we'll examine Orlando's salary cap situation, top contract decisions, and potential targets for 2026 free agency.
2026 Salary Cap
1 of 3
Fans probably shouldn't expect major changes in Orlando this offseason. The Magic are slated to have 12 players under contract or facing team options, including Banchero, Suggs, Wagner, Bane, and Wendell Carter Jr.
Orlando should largely be looking for fringe contributors, which is a good thing, given its financial situation. The Magic are projected to be $9.4 million over the first luxury tax apron and only $3.6 million below the more restrictive second apron—a threshold they may well hit with a full roster.
If Orlando does go over the second apron, it will be unable to aggregate contracts to trade for a single player, send out cash in trades, use trade exceptions from previous years, or take back more salary than it sends out in a trade.
Barring a significant salary dump, Parker will likely be looking to add minimum contracts while possibly using the taxpayer midlevel exception. He isn't likely to add much, if anything, via the trade market and the draft, as Orlando is slated to have just a single second-round pick.
Top Contract Decisions
2 of 3
Arguably the biggest decision the Magic will need to make this offseason will involve the future of oft-injured forward Jonathan Isaac. The 28-year-old has been a quality contributor, especially on defense, when healthy. However, counting on his availability has been an ussue for Orlando.
Isaac appeared in 52 games during the regular season, which would have triggered additional guarantees on his 2026 contract. According to ESPN's Bobby Marks, however, Orlando and Isaac amended the agreement in March.
According to Marks, the injury protection on Isaac's contract will jump from $6.5 million to $14.5 million if he's on the roster beyond June 28. Orlando will have to decide whether to keep Isaac and hope he can stay on the court or waive him and generate roughly $8 million in cap room.
Additionally, the Magic will need to make decisions on Moritz Wagner, Jett Howard, and Javon Carter, who are set to be unrestricted free agents. Jase Richardson and Colin Castleton will be restricted free agents, while Orlando holds a team option with Jamal Cain.
Free Agents to Pursue
3 of 3
If Orlando doesn't shake up the roster and get well below the luxury-tax apron, it isn't going to be a major player in free agency. Bleacher Report's Zach Buckley recently admitted as much while naming New York Knicks guard Landry Shamet as a "dream" free-agent target for the Magic:
"Capable shooters who won't get destroyed on defense are perpetually placed atop Orlando's wish list. They're also tricky to get for a team that might only have minimum money to offer. That probably isn't enough for Shamet, but you could dream up a scenario where it might be."
Buckley also mentioned Detroit Pistons guard Kevin Huerter and Cameron Payne (recently waived by the 76ers) as possible targets.
Luke Kennard, Gary Trent Jr. (player option), John Collins, and Robert Williams III are other players Orlando may keep tabs on this offseason. Adding frontcourt depth and some bench scoring should be free-agent priorities.
*Cap and contract information via Spotrac.
