In order to retain Hedo Turkoglu and Marcin Gortat, while also avoiding the luxury tax will force Orlando to make some moves to reduce salary.
Orlando's 09-10 payroll is projected at $70 million and the NBA's tax threshold is expected to drop from $71 million to about $68 million, which would result in a mandatory payment of the tax.
"We'd have to pay the tax, yes," General Manager Otis Smith said. "But that's today."
Smith said he believes that he will be able to ensure that the Magic remain a contender while getting the club under the tax.