NBA: Paolo Banchero signs five-year maximum rookie extension worth $239m
The Magic have tied down one of their most prolific players last season.
Orlando Magic forward Paolo Banchero has agreed to a five-year maximum rookie extension worth $239 million, which could climb to $287 million depending on performance-based incentives.
The extension features salary boosts that would kick in if Banchero earns All-NBA honours, wins MVP, or is named Defensive Player of the Year next season.
Additionally, the deal includes a player option for the 2030-31 season – a clause not seen in a rookie max contract since Luka Doncic and Trae Young signed their extensions in 2021.
The new agreement strengthens Orlando’s long-term plans, locking in Banchero alongside Franz Wagner and Jalen Suggs through the next five years.
The recent blockbuster trade for Desmond Bane, who is under contract until 2029, and the acquisition of veteran guard Tyus Jones further highlight the franchise’s commitment to competing in the Eastern Conference.
“This commitment reflects our belief in Paolo’s talent, character and desire to win at the highest level,” said Jeff Weltman, the Magic’s president of basketball operations.
Breaking: Orlando Magic star Paolo Banchero has agreed to a five-year maximum rookie contract extension that could reach $287 million, Mike Miller of LIFT Sports Management tells ESPN. Deal includes a player option; the first for a rookie max since 2021 (Luka Doncic, Trae Young). pic.twitter.com/bwnCrJbnmu
— Shams Charania (@ShamsCharania) July 7, 2025
“It also reflects Paolo’s belief in our organisation, our fans and the city of Orlando. We are excited to continue this journey together.”
Banchero, the No.1 overall pick in the 2022 NBA Draft, has been central to Orlando’s resurgence. Since his arrival, the Magic have made two consecutive playoff appearances.
Despite missing 34 games early in the 2024-25 season due to an oblique injury, Banchero delivered his best campaign yet, averaging 25.9 points, 7.5 rebounds, and 4.8 assists.
After the All-Star break, he stepped up even further, averaging 29.0 points, 7.8 rebounds, and 4.5 assists per game.
During the postseason, Banchero tied a franchise record by scoring 25+ points in seven straight playoff games across the 2024 and 2025 seasons.
He now ranks third in total points through three seasons in Magic history, trailing only Shaquille O’Neal and Penny Hardaway, with a total of 4,432 career points.