The Orlando Magic officially signed No. 1 Pick Paolo Banchero to a four-year, $50.1 Million Rookie Contract on July First, per Orlando Sentinel’s Khobi Price. This move shouldn’t come as a surprise, as Orlando invested the No. 1 pick in Banchero’s services over the likes of Gonzaga’s Chet Holmgren or Auburn’s Jabari Smith. Although Banchero doesn’t have the defensive dominance of Holmgren or the sweet-shooting of Smith, Banchero’s ability to play on both sides of the court will allow him to make an immediate impact in Orlando.
Banchero’s superb two-way play was on display at Duke this past season, as Banchero (6’10” and 250 pounds) averaged 17.1 PPG (Sixth in ACC), 7.8 RPG (Fifth in ACC), 3.2 APG (16th in ACC), 1.1 SPG, and 0.9 BPG (13th in ACC) in 39 games. In addition to this, Banchero was also a very efficient shooter at all three levels of the court, as he shot 47.8% from the field, 33.3% from three-point range, and 72.9% from the free-throw line.
With the ability to create offensive opportunities for himself and his teammates, Banchero will certainly help ignite Orlando’s stagnant offense, as they averaged just 104.2 PPG (29th in NBA). While Holmgren (14.1 PPG, 60.7/39.0/71.7 shooting splits) and Smith (16.9 PPG, 42.9/42.0/79.9 shooting splits) may have done the same, Banchero’s previous experience as a ‘point forward’ adds another element to his unique offense.
Despite signing the normal rookie contract, Banchero’s contract does include some important factors regarding it. To begin, the first two seasons (2022-2023 and 2023-2024) of Banchero’s contract are fully guaranteed, meaning he’ll earn $22.6 Million no matter what. After that, Banchero’s contract does get more confusing. In the 2024-2025 and 2025-2026 NBA seasons, Orlando actually has team options for Banchero, which may allow the Magic to part ways with Banchero if he is underperforming or has internal drama with Orlando’s Front Office and Management. With this said, this scenario is highly unlikely, as Orlando just took Banchero with the No. 1 pick, but it does give the Magic some financial flexibility in the future if they need it.
It’s also worth noting that Banchero is set to enter Free Agency in 2026 as a Restricted Free Agent, meaning the Magic have the ability to retain Banchero by matching any other contract that is offered to Banchero in Free Agency. In order for Banchero to become a Restricted Free Agent (RFA), Orlando must extend the $19.9 Million Qualifying Offer to Banchero. If the Magic decide to not do this, then Banchero will enter Unrestricted Free Agency (UFA), similar to how Mo Bamba did this past offseason. Rather than letting Banchero enter Free Agency as a RFA or UFA, Orlando can sign Banchero to a Max Rookie Extension, which is estimated to be a five-year, $215 Million Contract that will stretch from 2026-2030, per Sportrac. The full details of Banchero’s Rookie Contract can be found below, as provided by Sportrac.
| NBA Season | Age | Base Salary | Cap Hit | Guranteed Money | ||
| 2022-23 | 20 | $11,055,120 | $11,055,120 | $11,055,120 | ||
| 2023-24 | 21 | $11,608,080 | $11,608,080 | $11,608,080 | ||
| 2024-25 | 22 | $12,160,800 | $12,160,800 | N/A: ORL has Team Option | ||
| 2025-26 | 23 | $15,334,769 | $15,334,769 | N/A: ORL has Team Option | ||
| 2026-27 | 24 | QO: $19,935,200 | Hold: $38,336,923 | N/A: Banchero is a RFA |
With Banchero set to begin his NBA career in Orlando, he’ll join the Magic’s young and promising core of players. In addition to Banchero, Orlando still has Wendell Carter Jr., Bamba, Franz Wagner, Chuma Okeke, and 2022 second-round pick Caleb Houstan. Likewise, the Magic own a deep rotation of guards, headlined by former first-round picks Markelle Fultz, Cole Anthony, R.J. Hampton, and Jalen Suggs, alongside veteran Gary Harris, who was also re-signed in free agency.
Even though the NBA won’t get to see Orlando’s young core mesh in the 2022-2023 regular season for a few months, Banchero and Houston will headline Orlando’s Summer League team, where they’ll face Smith and Houston in the Summer League’s first game of the season. Orlando and Houstan are set to tip-off at 10 P.M. ET in the Thomas and Mack Arena at the University of Nevada (Las Vegas).