NBA Rumors: Jalen Suggs, Magic Agree to 5-Year, $150.5M Rookie Contract Extension

The Orlando Magic are quickly learning the cost of team success as they reportedly agreed to a five-year, $150.5 million rookie contract extension with guard Jalen Suggs on Monday, per ESPN's Shams Charania.

Suggs, who will earn $9.2 million for this season, was eligible to hit restricted free agency next summer.

The 23-year-old has made major strides between his rookie campaign in 2021-22 and now. Across 75 appearances this past year, he averaged 12.6 points and 2.7 assists in 27.0 minutes per contest. His field-goal (47.1) and three-point (39.7) percentages were both the highest of his career.

One of Suggs' best performances came in a 122-120 victory over the reigning champion Denver Nuggets on the road on Jan. 5. He finished with 27 points and shot 7-of-9 from beyond the arc.

Suggs' impact on the Magic goes beyond the box score.

"He wears his emotion and his heart on his sleeve," head coach Jamahl Mosley told The Ringer's Michael Pina. "He's pure. There's so much love there. That's why this group is the way it is. Because he is how he is."

Teammate Cole Anthony called him "crazy... in all the best ways."

"His energy is contagious," Anthony said to Pina. "Especially [with] me coming off the bench, seeing him on that first line, play with such force and so much energy, it inspires me to do the same thing."

Orlando has already begun to extend some of its homegrown talent, but this is the time when the difficult conversations were likely to start.

Franz Wagner is another member of the 2021 draft class and inked a $224 million max contract. Wendell Carter Jr. already signed an extension that doesn't go into effect until 2026. Paolo Banchero will extension-eligible in 2025.

It's not too early to begin thinking about how the roster will look in another three or four years with an eye toward fulfilling possible Finals aspirations.

Smaller-market franchises have always had to be more prudent with their finances because they're rarely destinations for marquee free agents and trade candidates. Giving out one bad contract could set a team back years or slam a competitive window shut.

The more restrictive collective bargaining agreement has placed an even higher importance on managing the payroll. The Phoenix Suns wasted no time in becoming the poster child for the consequences of reckless spending.

When it came to Suggs, the question for the Magic was probably less about re-signing him and more about trying to land on the right dollar figure.

Preserving as much financial flexibility was important from Orlando's own cap perspective and when considering what could happen if general manager Anthony Parker is forced to act pragmatically.

In addition, for as much as it values Suggs right now, the front office may have wanted to ensure his new contract would be movable if the moment arrives when he has to be included in a trade for a bigger star who helps lift the organization over the top.