The Phoenix Suns Reach New Financial Heights in the NBA

The NBA’s $76 billion from new TV deals hasn’t started benefiting individual teams yet but it will soon. The economic impact is already starting to be seen.

On Thursday the Phoenix Suns signed guard Josh Okogie to a two year $16 million contract with the second year not guaranteed. While the deal itself isn’t very notable it pushes the team’s total player payroll. And luxury tax costs to over $400 million for the upcoming season according to ESPN’s Bobby Marks.

The $400 million total is a first for the league. And the Phoenix Suns will be in the NBA’s stricter second apron salary cap zone. Which starts at $188.9 million this season. This higher level of spending brings extra restrictions especially on trades. And might even push the team’s first round draft picks to the end of the round.

With upcoming media money set to significantly increase the NBA’s annual earnings the Phoenix Suns. Feel confident to emulate recent championship teams by exceeding the salary cap. Like the Warriors did during their dynasty led by Stephen Curry. the Suns are prepare to incur substantial luxury tax expenses.

The defending champion Celtics have signed forward Jayson Tatum to a record breaking contract for the second year in a row even though the team is up for sale. Boston will also be in the second apron salary cap zone this coming season.

Different Situations

Unlike those successful teams with championships the Phoenix Suns are still struggling competitively. They reach the NBA Finals in 2021 but have since lost twice in the conference semifinals. And swept by the Timberwolves in the first round last season.

Team owner Mat Ishbia has been very aggressive and player costs for the 2025–26 season could reach nearly $500 million. Even with strong teams like the Mavericks Nuggets Thunder.

And Timberwolves in the Western Conference the Suns are going all in. Their star trio Kevin Durant, Bradley Beal and Devin Booker will make almost $151 million this year. And that amount will grow to nearly $162 million by the 2025–26 season.

Elsewhere in the league the second apron of the salary cap has limited many teams’ offseason moves and is successfully controlling spending.