Jalen Suggs' unique contract will provide a boost to the Orlando Magic's title hunt

Jalen Suggs said he felt the weight lifted off his shoulders after signing his new contract with the Orlando Magic. It may have been something unavoidable, and the Magic would have taken care of it had they ended up using restricted free agency, but it was still a relief.

The normally cheerful Suggs was a little more subdued in the preseason. Even though he wouldn't admit it, the future of his contract was weighing on him. It certainly seemed to affect some of his plays during exhibition games.

It was clearly a point of tension. And fans felt it too as the Magic worked to solidify their future.

The start of the season has dispelled many concerns. Thanks to the maximum contract extension for Franz Wagner, the contract extension for Wendell Carter and the signing of Kentavious Caldwell-Pope as a free agent, the Magic have now added long-term contracts to their starting lineup. Paolo Banchero will get his maximum contract next summer.

Suggs signed his five-year, $150.5 million contract before the deadline last week. What everyone was waiting for was the structure of this deal. And when The Athletic's Fred Katz was first to report that it was an upfront deal, interest in the deal became clear.

This is a deal that helps the Magic when they need it most – while limiting them by caps on how much they can spend and the tools they have at their disposal.

While Suggs will be paid a hefty $35 million next year (an estimated 22 percent of the salary cap), he will end his contract in the 2030 season at $26.7 million (an estimated 11.8 percent of the salary cap). Paying that much for a starter and potential All-Defensive Team player would be a huge bargain.

Orlando has structured many of their contracts to feel the pain at the start of the contracts to give them more flexibility when Wagner, along with Banchero, is deep into contract extensions. The Magic will pay the most for Suggs if they can afford it. As Suggs' contract lengthens, they gain more flexibility.

All of this is important considering that Magic's next phase of growth and development will likely lie in exploring the trade market. The team is expected to run out of cap space in the near future.

Even before Jalen Suggs signed his new contract, the Orlando Magic were expected to be over the salary cap next season, despite still being under the first apron and the restrictions that come with it.

This is indeed a new era.

According to Spotrac, the Magic already have $182.2 million in guaranteed salary for the team next year. The NBA salary cap is expected to be $154.6 million. And the luxury tax limit is $187.9 million.

That would mean picking up Moe Wagner's $11.0 million team option would put the Magic over the tax line. Not to mention the team's potential two first-round picks in the upcoming draft.

The Magic should still be well below the first front line of $195.9 million. But the team is already flirting with the apron.

Part of the risk of re-signing Suggs to a $30+ million contract was that the Magic would be pretty tight on their books. All of the cap flexibility that the Magic have carefully managed through advanced contracts and team options would be spent on retaining their own players.

The league is still adjusting its cap projections. But next year will be the first year of the league's huge new television deal. According to the new GAV, the salary cap may only be increased by a maximum of 10 percent. Player salaries can only increase by eight percent.

As it stands, the Magic are paying the most for Suggs, not only before Banchero's big contract expires, but also while the salary cap is at its lowest. The Magic will have more room to explore.

To put it this way, the salary cap is projected to be $170.6 million for the 2027 season. The Magic have already committed $157.4 million this season (including likely options, but excluding Cole Anthony's team option for now). Paolo Banchero's extension would cost at least $42.7 million.

This means that the magic will is still above the salary cap and probably also above the tax cap. But once Banchero is locked up, the salary cap increases faster than Banchero's salary. The team will get some wiggle room and may stay short of the frontcourt as Suggs' contract shortens over time.

It's too hard to predict what the Magic's cap status will be in two or three years. A lot can change. But it's easy to see what the reality of the Magic's cap will be.

They are an outstanding team for the foreseeable future. And they will flirt with the tax line in the near future and perhaps soon with the first apron.

The Orlando Magic's ultimate goal is to win a title. And as Jeff Weltman, president of basketball operations, said, the team can't stay together forever. They will have to make some difficult decisions about players in the near future.

That could mean the team part ways with Gary Harris to keep their tax bill down this season. It could mean having to make tough decisions about key players on the roster, especially as younger players come into their own during their rookie contracts.

It also means Orlando has a big bite at the apple. The team has been putting together its contracts to be ready for a trade. But because the team is flirting with frontcourt rules, it may have a chance at a big deal.

Suggs' expiring contract will likely help in that effort when the time comes.

Regardless, when it comes to the Magic's next step, they will be entering a new phase where their draft picks and roster decisions will have an impact and influence the team's future. Mistakes will hurt much more. This can include contracts they have signed and players they have already invested in.

For now, the Magic are happy with their roster and its growth and development. The season so far has shown that this is a sensible investment. But there is obviously still a lot of time ahead of us.

Orlando clearly has a lot of drive and reason to keep the squad together. The team has developed and grown the way it wants to and can of course progress into a championship level team. The Magic are paying a pretty high price for this.

But that's the nature of setting up a competitive tam. The question will be what’s next for the Magic.

Whatever it is, Suggs' contract should give the team more wiggle room to accomplish that and position them to continue building thanks to his unique structure.