The Magic are shelling out a big-time sum to keep their young star in Orlando.

Paolo Banchero has agreed to sign a five-year maximum rookie contract extension with the Magic that could be worth as much as $287 million, ESPN’s Shams Charania reported Monday.

The base salary is $239 million over the five years, or $47.8 per season, but Banchero could make more if he makes an All-NBA team, wins MVP or captures the Defensive Player of the Year award next year. 

The deal also includes a player option in 2030-31, marking the first time a rookie extension has featured a player option since Luka Doncic and Trae Young signed their rookie extensions in 2021. 

The Magic have taken steps to solidify their core this offseason – most notably, trading for Desmond Bane from the Grizzlies on June 15 in exchange for Cole Anthony, Kentavious Caldwell-Pope and four first-round picks. 

Orlando also signed free agent point guard Tyus Jones to bolster its depth. 

The team has a quality group of homegrown talent to surround Banchero, too, including Franz Wagner and Jalen Suggs. 

Banchero, Wagner, Suggs and Bane are now all under contract with the Magic through the 2028-29 season.

Banchero, the No. 1 pick in the 2022 draft, has led the Magic to back-to-back playoff appearances. 

The Seattle native missed 34 games in 2024-25 with an oblique tear, but he still averaged 25.9 points, 7.5 rebounds and 4.8 assists in the 46 games he did play. 

The year prior, he was an All-Star and averaged 22.6 points, 6.9 rebounds and 5.4 assists, and he also captured Rookie of the Year honors in 2022-23. 

Now, Banchero will look to help the Magic become contenders in a weak Eastern Conference, with the Celtics’ Jayson Tatum and the Pacers’ Tyrese Haliburton both expected to miss most, if not all, of next season with respective Achilles injuries.