Paolo Banchero has agreed to the richest contract in Orlando Magic history. According to a person with knowledge of the agreement, his five-year extension is worth $239 million and could reach about $287 million should he become eligible for a supermax deal.

The Orlando Magic will find themselves going deep into the luxury tax after offering Paolo Banchero a sizeable contract extension. With an investment in the future, we examine the team's luxury tax outlook for the upcoming season.