Magic Trade Tyus Jones to Hornets, Avoid Luxury Tax

Orlando reduces payroll below NBA's luxury tax threshold with deal

Apr. 11, 2026 at 5:39pm

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A cubist-style painting depicting a basketball game broken down into overlapping geometric shapes and planes, conveying the complex financial and roster decisions behind the Magic's trade.The Magic's trade of Tyus Jones to the Hornets reflects the team's strategic maneuvering to manage its payroll and prepare for the future.Today in Orlando

The Orlando Magic have traded point guard Tyus Jones to the Charlotte Hornets, along with two future second-round draft picks, in exchange for cash considerations. This move allows the Magic to drop their payroll below the NBA's luxury tax threshold for the current season.

Why it matters

By shedding Jones' $7 million contract, the Magic can avoid facing the hefty luxury tax penalties that teams exceeding the $187.9 million limit must pay. This provides financial flexibility as the team prepares to potentially extend forward Paolo Banchero's contract, which is set to significantly increase next season.

The details

The Magic's payroll stood at around $193.5 million prior to the trade, putting them over the luxury tax limit. By trading Jones, their adjusted payroll now sits at approximately $186.5 million, just below the $187.9 million threshold. This transaction postpones the onset of the repeater tax, which can escalate to $2.50 per dollar over the limit for teams exceeding the luxury tax in three of the previous four seasons.

  • The trade was officially announced by the Magic on Wednesday evening.

The players

Tyus Jones

A point guard who was brought in by the Magic during the offseason to provide veteran experience and improve their three-point shooting. He averaged 3 points, 2.4 assists, and 1.1 rebounds in 15.7 minutes per game this season.

Jeff Weltman

The President of Basketball Operations for the Orlando Magic, who announced the trade.

Paolo Banchero

A forward for the Magic who is expected to receive a significant contract extension next season, which would increase the team's payroll.

Jase Richardson

A rookie guard selected by the Magic in the 2025 draft, who may see increased playing time with Jones' departure.

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What they’re saying

“We must manage our payroll responsibly to ensure the long-term success of the franchise. This trade gives us more flexibility as we look to build a championship-caliber team.”

— Jeff Weltman, President of Basketball Operations, Orlando Magic

What’s next

The Magic have a 14-day window to sign an additional player to meet the NBA's minimum roster requirement of 14 players on a standard roster.

The takeaway

This trade highlights the Magic's focus on financial prudence and long-term planning, as they look to avoid the luxury tax while also preparing for the anticipated contract extension of their young star, Paolo Banchero. The move could open up more playing time for rookie guard Jase Richardson, but it also leaves the team with one fewer experienced player on the roster.