The Orlando Magic said their recent decision to agree to a five-year, $239 million contract with All-Star forward Paolo Banchero reflected their "belief" in his talent and "desire to win at the highest level.

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.