The Magic and fourth-year guard Anthony Black failed to reach an agreement on a rookie-scale contract extension ahead of Monday’s 6 p.m. deadline.
By not signing a contract extension, Black, the No. 6 pick in the 2023 draft, is headed toward restricted free agency next summer following his fourth year with Orlando and the final season of his rookie contract.
A restricted free agent can sign an offer sheet with any team, but the player’s original team can retain him by matching the terms of that offer. Black also could become an unrestricted free agent if Orlando opts not to qualify him, which would then allow him to sign with any team.
In order for a player to become a restricted free agent, his team must submit a qualifying offer to the player between the day after the last game of the NBA Finals and June 29, according to the league.
By not reaching an agreement on an extension ahead of the season, both sides are taking a gamble of sorts. Black could perform at a high level and earn a contract that he feels comfortable signing, or he could have a down year and miss out on more money.
The same goes for the Magic. While the team will have the right of first refusal for Black once he becomes a restricted free agent, the door is open for the young guard to sign an offer sheet with another team and potentially leave.
But just because the sides weren’t able to come to terms on an extension ahead of the deadline to do so, doesn’t mean he can’t return to the team in the upcoming offseason. In fact, Magic president of basketball operations Jeff Weltman acknowledged that possibility at the team’s media day on Sept. 28 inside the AdventHealth Training Center.
“We believe he’s a bright young player in this league who’s just going to get better and better, and we’ll have continuous conversation with his people up until the deadline,” Weltman said at the time. “And we’re hopeful that we can arrive at something.”
“But if not, we expect Anthony to have a great year,” Weltman added. “(Extensions) don’t always get done right now. Sometimes they get done later, so we’ll see.”
Research done by Keith Smith of Spotrac.com found that 60 players from the 10 first-round draft classes between 2013 and 2022 ended up signing new contracts as restricted free agents. Of the 60, a total of 37 (or 61.6%) re-signed with their former team on a new deal that wasn’t from a qualifying offer.
In addition, seven players signed a qualifying offer, seven signed offer sheets with other teams and nine others changed teams via sign-and-trade deals, according to Smith.
A qualifying offer is a standing offer for a one-year guaranteed deal, which becomes a regular contract if a player decides to sign it.
Black and the Magic could also work out a deal that is independent of the qualifying offer or they could negotiate a sign-and-trade if he doesn’t sign an offer sheet with another team.
Of course, the Magic don’t have as much future financial flexibility as they’ve had in the past. Orlando already has a combined $161.2 million in salary allocated to Paolo Banchero, Franz Wagner, Jalen Suggs and Desmond Bane for the 2027-28 season. Tack on the $19.5 million owed to Wendell Carter Jr. and the number reaches north of $180 million committed for just five players.
But the team likes Black and his future potential. It’s why Orlando drafted him sixth overall out of Arkansas in 2023.
Although he missed time down the stretch last season because of a left lateral abdominal strain, he still averaged career highs of 15 points, 3.8 rebounds and 3.7 assists during 29.8 minutes per night in 64 regular-season games.
Black missed all four of Orlando’s preseason contests because of a right ankle sprain he suffered during voluntary workouts in the lead up to training camp, but he’s continued to ramp up towards a return, according to new Magic coach Sean Sweeney.
With Monday’s deadline passed, the sides can shift their focus fully to opening night. The Magic open the regular season Wednesday when they host the Hawks at Kia Center.
Jason Beede can be reached at jbeede@orlandosentinel.com