[1] During the offseason, the Magic signed free agents Juwan Howard and Tyronn Lue.
Injuries hamstrung the Magic from the start of the season as Grant Hill missed the entire season recovering from ankle surgery, while Pat Garrity was lost after just two games with a knee injury.
However, their season would go straight down right after as they lost their next 19 games costing head coach Doc Rivers his job.
With replacement Johnny Davis taking over, the Magic never recovered from their losing streak as they lost thirteen straight near the end of the season, finishing last place in the Atlantic Division with a league-worst 21–61 record, the franchise's worst record since 1991–92.
Following the season, McGrady requested a trade and was traded along with Howard, Lue and Reece Gaines to the Houston Rockets,[2] and second-year forward Drew Gooden was dealt to the Cleveland Cavaliers.