The Orlando Magic had two major transactions to make on the final day of the 2025 season before free agency begins Monday at 6 p.m.
It had fans wringing their hands a bit.
Beloved backup center Moe Wagner was on the chopping block with a team option on the final year of his two-year, $22 million deal. It was clear that the Magic want him back. But it was also clear there was a cap advantage to declining his option and leaving him out to free agency.
It was not surprising that Orlando declined the team options for both Moe Wagner and Caleb Houstan. Declining both options sneaks the Magic below the luxury tax line, giving them access to the non-taxpayer mid-level exception (although not the full MLE without further moves due to first apron restrictions).
Still, it is a stinging move for a player who has come to define the Magic's culture and identity. It is a stinging move for a fan favorite player who endeared himself to the entire fan base. It is a stinging move for a player who has publicly expressed his angst about signing new contracts (this is his third straight season entering free agency and his second straight season having his team option declined for salary cap purposes).
That stress is understandable from a human perspective. It is more than understandable considering Wagner is coming off a torn ACL in December. And with the Magic entering a win-now mode, it certainly feels a bit limiting to sit and with for Wagner to return likely in late December or early January.
Still, it is more than clear that the Magic want to bring Wagner back. And while there is frustration over the prospect of Wagner departing in free agency, it is still a good bet that he will return. Or that the Magic will try to bring him back on some deal.
Wagner became essential to the Magic
Moe Wagner has proven himself an essential piece for the Orlando Magic.
He has been a sixth man of the year candidate the last two seasons and has helped anchor one of the best bench scoring groups in the league.
Last year, before his injury, Wagner was having a career season, averaging 12.9 points per game and shooting 56.2 percent from the floor and 36.0 percent from three. Coach Jamahl Mosley often joked that Moe Wagner woke up scoring 10 points for how reliable he was as an offensive option.
The Magic's bench group went from fifth in the league at 40.0 points per game off the bench before Wagner's injury to 21st in the league at 33.3 points per game. That is not all because of Wagner -- the team faced tons of injuries that gutted its bench -- but Wagner's injury was a true turning point in the season.
That was because beyond his scoring exploits, Wagner exemplified the team's culture through his effort and intensity. He did not come to the Magic as a good defender, but he found a niche taking charges and fitting into the team's identity.
Wagner is a constant talker and the kind of player who other teams and fan bases hate, but teammates and cheering fans adore for not backing down from anyone. The Magic can be a sometimes quiet team, and Wagner gave them a little bit of bravado.
Nobody wants to lose him.
Caleb Houstan has also proven valuable as a shooter. The second-round pick became a utility starter for the Magic, filling in when the team needed him.
He found his niche late last year. He averaged 6.9 points per game and making 50.8 percent of his threes during the Magic's last 18 regular season games when they rallied to make the Playoffs.
Teammates and coaches constantly call him the team's hardest worker, nicknaming him "The Machine." He is indeed featured heavily in the Magic's offseason social media content from the AdventHealth Training Center. He was in the gym when the media were preparing for draft coverage this week.
The Magic can play free agency now
But making these moves, as much as they may hurt or potentially lead the team to lose these key players, was necessary.
Declining those team options leaves the Orlando Magic approximately $10.7 million beneath the luxury tax line (not including contracts for Jase Richardson or Noah Penda, who are both expected to be on the roster next season).
That gives the Magic access to the non-taxpayer mid-level exception of $14.1 million (although they are $18.7 million below the first apron before including roughly $5 million of contracts for the two rookies).
Declining these team options was necessary for the Magic to enter free agency and have a chance to add another significant player to the team.
Orlando is walking a tightrope to get there. If the team spends more than $5.7 million of the mid-level exception, the team becomes hard-capped at the first apron.
If the team had not declined Moe Wagner's option, the team would not have access to any part of the smaller taxpayer mid-level exception. Declining Wagner's team option specifically was necessary for the Magic to add a new player in free agency.
The Magic still clearly have a fine line to walk. If the Magic want to assure they bring back Wagner, it likely means using only the taxpayer mid-level exception of roughly $5.7 million so that they avoid a hard cap at the first apron.
It is indeed a bit scary to see such an important player flung into the open market yet again. But the Magic should still feel pretty confident they can retain Wagner.
But you just never know.