The Orlando Magic have a lot to consider during the 2025 NBA free agency window. In preparation for the process, the Magic opted to decline team options on center Moritz “Moe” Wagner and Caleb Houstan.

While Wagner and Houstan will become unrestricted free agents, Orlando retains their Bird rights and can potentially re-sign them, per ESPN's Shams Charania. Wagner would have been owed $11 million in 2025-2026, with Houstan's option worth $2 million.

Wagner, the older brother of Magic star Franz Wagner, averaged a career-high 12.9 points per game in 2024-2025, making his move somewhat of a surprise. However, his season was cut short by a torn ACL after just 30 games, putting his future in limbo.

Houstan, a 2022 second-round pick, has never made the same impact in his three years with the team. Houstan has appeared in 168 total games for Orlando, averaging just 4.1 points per outing. While he did shoot a career-high 40.1 percent from deep in 2024-2025, Houstan reached double figures just eight times all year.

Both Moe Wagner and Houstan came out of Michigan, but never overlapped in Ann Arbor. Wagner declared for the 2018 NBA Draft after three years with the Wolverines, four years before Houstan went one-and-done in 2021-2022.

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Magic enter NBA free agency with internal focus

Orlando Magic guard Caleb Houstan (2) looks on during the first quarter against the Washington Wizards at Capital One Arena.
Reggie Hildred-Imagn Images

Even without Wagner and Houstan's contracts on their books, the Magic do not have much flexibility in free agency. Orlando went all-in on the Desmond Bane trade with the Memphis Grizzlies before seemingly shifting its focus internally.

The Magic now have nine players under contract for the 2025-2026 season, not including recent draft picks Jase Richardson and Noah Penda. Orlando's biggest concern will be extending All-Star forward Paolo Banchero, who will enter the final year of his rookie deal in the fall.

After a three-year playoff drought, the Magic have made the playoffs in consecutive seasons. However, they have not gotten past the first round in either year and have yet to get over the hump. The Bane deal certainly shifts their outlook. With long-term injuries to stars Jayson Tatum, Tyrese Haliburton and Damian Lillard, the Eastern Conference is wide open in 2025-2026, something Orlando clearly intends to exploit.