Why Magic are at a crossroads as trade deadline looms

Orlando is currently 20-16 through 36 games.

Nov 10, 2025; Orlando, Florida, USA; Orlando Magic guard Desmond Bane (3) celebrates with forward Paolo Banchero (5) after making a game wing basket against the Portland Trail Blazers in the fourth quarter at Kia Center. Mandatory Credit: Nathan Ray Seebeck-Imagn Images | Nathan Ray Seebeck-Imagn Images

The Orlando Magic pushed most of their chips to the middle last summer when they traded five first-round picks -- including four unprotected -- to the Memphis Grizzlies in exchange for Desmond Bane.

As we approach the Feb. 5 trade deadline, which is less than one month away, the Magic, sitting at 20-16, are at a crossroads with plenty of looming questions.

Do they have enough shooting?! How should they go about upgrading their defense with Jalen Suggs' nagging injuries?! Do they have enough to buy and make another extra push?! Do they already have enough to compete in a weakened East?!

According to Bleacher Report's Andy Bailey, the Magic should duck below the luxury tax.

"The Orlando Magic aren't quite as close to their target line as some other teams around the league, but shedding$5.6 million in salary is far from impossible," Bailey wrote.

"When you consider how expensive Orlando will be next season," he continued. "Delaying that first year in the tax (and by extension, repeater tax penalties) almost feels urgent."

Why the beauty should lie in the middle:

Apr 11, 2023; Orlando, Florida, USA; Orlando Magic president of basketball operations Jeff Weltman speaks during a press conference for the new Orlando Magic G-League stadium at Osceola Heritage Park. Mandatory Credit: Nathan Ray Seebeck-Imagn Images | Nathan Ray Seebeck-Imagn Images

I know what you're thinking: No, I'm not saying the Magic should embrace being a middling East squad.

Every trade deadline, most of the general public categorizes teams into two divisions: Buyers and sellers. In today's two-apron era, however, there is a bevy of teams that attempt to do both.

And that's exactly how the Magic should operate this upcoming deadline, should the right deals percolate.

Currently, the Magic are $1.2 million below the first apron, where they are hard-capped after using $7 million of the team's $14.1 million non-taxpayer mid-level exception -- greater than the taxpayer portion ($5.7M) -- to sign Tyus Jones.

They don't have much flexibility to begin with, the lack of draft capital notwithstanding. That doesn't mean they should sit on their hands and not try to improve around the margins, however.

They are locked into their core of Franz Wagner, Desmond Bane, Jalen Suggs and Paolo Banchero, who allocate for 81.2 percent of the cap this year and 93 percent next year, when Banchero's lofty $241 million extension kicks in.

They have Jonathan Isaac's partially-guaranteed $59 million to play with, as well as Goga Bitadze's ~$16 million (over next two years), Jones' $7 million, Jett Howard's $6 million and Mo Wagner's $5 million to play with.

The Magic are No. 25 in 3-point efficiency, No. 13 in offensive efficiency and No. 11 in defense, well below their standard. Injuries haven't helped, but there are ways for them to potentially avoid the tax and consider adding at least 1-2 cheap role players who help close those margins. It won't be easy, but it's palatable. And it will require Magic president Jeff Weltman to get creative.