Billy Donovan was signed as head coach of the Magic on June 1 agreeing to a 5-year, $27.5 million deal with the team., to replace recently fired Magic hed coach Brian Hill. Donovan had previously led the University of Florida basketball team to back to back NCAA National Championships in 2006 and 2007. One day later however, Donovan had second thoughts about becoming head coach of the Magic, and wished to be released from his contract to return to his former team, the Florida Gators Men's basketball team. On June 5, the Magic released Donovan from his 5-year contract, under the condition that he would not be allowed to sign as head coach of another NBA team for five years. One day later, the Magic signed Stan Van Gundy as head coach. The deal was reportedly for 4 years, $16 million.

The Magic made a splash in the free agent market by acquiring small forward Rashard Lewis on July 11. Lewis was re-signed to the Seattle SuperSonics for a six-year league maximum contract, then promptly traded to the Magic in a "sign and trade" for a second-round pick in the 2008 NBA draft. The Sonics earned a mid-level salary cap exemption in the trade. Lewis signed a six-year league-maximum contract believed to be worth over $110 million.

Then the Magic filled in a need and went after a big man after losing Darko Miličić, and signed Center Adonal Foyle who played for the Golden State Warriors and leads the Warriors in most blocks in team history.

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Wikipedia