How Suns Smartly Navigated New Luxury Tax Rules

ESPN broke down exactly how the Phoenix Suns navigated a new CBA before it even took place.

The Phoenix Suns are here to change a few narratives formed around the organization. 

After bowing out in the second round of the postseason in back-to-back years, the Suns hope to shake the early exit narrative they recently gained and make a push towards the NBA Finals, a height they last reached in 2021. 

Though it doesn't feel too far removed, only Devin Booker and Deandre Ayton remain on that beloved squad that reignited basketball fever here in the Valley. There's been some massive changes made from top to bottom, mostly thanks to new owner Mat Ishbia.

Ishbia took over the helm in the winding hours of the NBA's trade deadline last season, worked out a deal to land Kevin Durant and hasn't stopped the overhaul since. 

The Suns used to be known for their stingy pockets under previous owner Robert Sarver, rarely pushing themselves over the luxury tax. 

Now, they're the No. 3 team in the league when it comes to money spent on the books, falling just short of the Golden State Warriors and Los Angeles Clippers according to Spotrac. 

Phoenix added the talents of Bradley Beal via trade while also accumulating a handful of strong veterans in free agency on minimum contracts, and they did so in a unique way. 

ESPN recently highlighted Phoenix's ultra-smart ways of doing business before the new CBA went into effect:

"Teams would spend a record-breaking $4.6 billion in player salaries in the first month of free agency. However, at the same time, multiple franchises made financial decisions based not only on the new rules for this season but also for 2024-25 and beyond. That's when teams over the new second luxury tax apron face more severe roster restrictions and penalties," wrote ESPN.

"Those penalties, though, didn't dissuade the Suns from putting together a superteam, taking a different approach to roster building in light of the new rules."

NBA insider Bobby Marks then dove into the details:

"Two weeks before the new CBA took effect, Phoenix traded for Beal and the $200 million left on his contract. The Suns doubled down on February's trade for Kevin Durant and solidified themselves as a second apron team not only in 2023-24 but the foreseeable future. Still, by finalizing the move in June, the Suns were able to operate under the rules of the old CBA," wrote Marks. 

"Under the new terms, the traded player exception rule to acquire players decreased from 125% of matching salary to 110% -- meaning the deal Phoenix made to get Beal for Chris Paul and Landry Shamet would not have worked after July 1.

"A month after the Beal trade, the Suns have strengthened their bench at a low cost, which was necessary because this year's second apron rules prevented them from using the taxpayer midlevel exception. Eric Gordon, Damion Lee, Keita Bates-Diop, Chimezie Metu, Yuta Watanabe, Bol Bol and Drew Eubanks were all signed for the minimum, while Josh Okogie re-signed the largest possible contract using non-Bird rights."

After highlighting the volume of second-round picks obtained along with first-round pick swaps, Marks added: "The Suns' offseason was the direct opposite of how the NBA believed the new CBA would curb roster movement for high-spending teams. What the NBA did not take into account is Phoenix taking advantage of a one-year window to maximize all of its resources before the more stringent rules next offseason took place.

"For example, Phoenix has sent out $10.3 million in two separate trades. Starting after the last day of the 2023-24 regular season, teams over the second apron are not allowed to trade cash and acquire a player into a trade exception."

Fellow ESPN insider Tim Bontemps chimed in and pointed to teams such as Golden State, Los Angeles (Clippers) and Boston that have made some cost-cutting moves before saying, "This is precisely the system the NBA wanted, one where top teams from a spending standpoint are forced into difficult decisions financially that curb their ability to compete. 

"And while the NBPA will argue that the Suns' moves show there will still be teams willing and able to spend whatever they feel like moving forward, there's little doubt the effect the NBA was rooting for has already begun to set in."