Magic, Franz Wagner agree to five-year maximum contract extension worth at least $224 million, per reports

Franz Wagner and the Orlando Magic have agreed to a five-year contract extension, per ESPN and The Athletic. The extension will pay Wagner approximately $224 million, and that number could be even higher if he takes a leap forward next season. If Wagner makes an All-NBA team in 2024-25, then the extension will start at 30% of the following season’s salary cap and pay him a projected $269 million over five years, according to ESPN.

This is a similar structure to the contract extension that Toronto Raptors forward Scottie Barnes agreed to last week. Barnes, notably, agreed to a deal that did not include a player option on the fifth season; presumably, Wagner did the same.

Unlike Barnes, Wagner has yet to make an All-Star team. And his 3-point percentage dropped from 36.1% in his second season to 28.1% in 2023-24, so a $51 million salary in 2029-30 (presuming he doesn’t make All-NBA) might seem exorbitant. If the Magic believe the shooting will bounce back, though, this isn’t necessarily that much of a stretch. 

No, Wagner hasn’t proven that he’s a traditional “max” player, but, starting next offseason, the NBA’s salary cap is expected to increase by 10% for several consecutive years as a result of the league’s new media-rights deal. Since Wagner’s year-over-year raises are limited to 8% of his salary in the first year of his extension, his contract — as with any long-term contract signed this summer — will pay him less and less as a proportion of the cap as time goes by.

Wagner turns 23 in August. This past season, he averaged 19.7 points, 5.3 rebounds and 3.7 assists in 32.5 minutes for the Magic, with a 25% usage rate and a 57.5% true shooting percentage. Along with Paolo Banchero, he is clearly one of the franchise’s cornerstones, and, as a 6-foot-10 wing who can credibly defend multiple positions, he’s precisely the type of player every team is searching for. By agreeing to this contract, Orlando is betting on Wagner’s continued improvement, but it should know better than anybody else how likely he is to reach his potential.

On Tuesday, ESPN reported that Wagner’s brother and teammate, Moe, had agreed to re-sign with the Magic on a two-year, $22 million deal. On Friday, Moe posted an old photo of his younger brother asleep with a pacifier in his mouth, along with the Instagram caption, “This guy is a NBA Max player… Insanity.”