The Magic have a year to use the $3.3 million trade exception. It allows them to take back a player making up to $3.4 million ($3.3 million plus $100,000) in a trade without having to send matching salaries back in return. The trade exception can't be combined with another player's contract in a bigger trade.
The likelihood is the Magic won't use the trade exception because their payroll has swelled to $68 million this offseason. The NBA's dollar-for-dollar luxury tax kicks in at $71.1 million and Magic general manager Otis Smith has emphatically said Orlando will not exceed the threshold.
One possible scenario could be the Magic dealing the trade exception in a three-team transaction or to a team looking to shed salaries in order to pick up a future first- or second-round draft pick.