The deal has the potential to escalate to a staggering $269 million if certain conditions are met, as reported by ESPN on Friday.

Sources indicate that should Wagner be voted to an All-NBA team, he would become eligible to receive 30% of the team's salary cap. Wagner's agent, Jason Glushon, finalized the terms of the extension over the July 4 holiday, marking an important milestone in the young player's career.

Wagner has proven to be an indispensable asset for the Magic, playing a pivotal role in the team's resurgence. Last season, he showcased his skills by averaging an impressive 19.7 points, 5.3 rebounds, and 3.7 assists per game. The team's record-breaking 47-35 season marked their best performance since the 2010-11 campaign, with Wagner being a key driving force behind their success.

Notably, the 20-year-old Wagner has made his mark in the Magic franchise's history books. He joins basketball legends such as Shaquille O'Neal, Dwight Howard, and Tracy McGrady in achieving the milestone of scoring at least 4,000 points before his 23rd birthday, according to ESPN Stats & Information.

Drafted as the eighth overall pick in 2021 from the University of Michigan, Wagner's stellar performances on the court have garnered attention and accolades. With seven 30-point games under his belt last season, he also ranked among the top 10 players for made layups and dunks, as confirmed by Second Spectrum.

In a noteworthy coincidence, Wagner's brother Moe Wagner, also a basketball player, recently agreed to a lucrative two-year contract worth $22 million with the Orlando Magic. This makes the Wagner brothers a powerful duo for the team moving forward.

Regarded as one of the most talented players to emerge from Germany since the legendary Dirk Nowitzki, Franz Wagner's flourishing career trajectory demonstrates his immense potential and impact on the court. With his new contract extension, he solidifies his status as a key figure in the Orlando Magic's future and a player to watch in the NBA.