Building a super team in the NBA puts a significant strain on finances. But every penny spent should be worth it. The Phoenix Suns, with their star-studded roster for the 2024-25 season, aim to make a major impact. At the heart of it all is Mat Ishbia, the team’s CEO, committed to the Phoenix Suns’ success.

As the new season approaches, they face a major financial dilemma. Their fearless approach risks a fate like Icarus if it backfires. Under Mat Ishbia’s leadership, the team has gathered high-profile stars; this has put a substantial strain on their salary cap. Let’s find out more about this.

What is the Sun’s salary cap for the 2024-25 season?

The Suns’ payroll for the upcoming season is $220M+ making it the highest in the NBA. Moreover, their projected luxury tax is $188.9 million, which the team has unfortunately exceeded. This means that Mat Ishbia will have to cover the penalties for this overstepping. Luckily, their CEO isn’t afraid to spend, thus you can expect the team to evolve from any monetary setbacks in the 2024-25 season.

Three major players: Kevin Durant, Devin Booker, and Bradley Beal, occupy a major part of the payroll. A whopping $150,588,750 is spent in all, to maintain these big names. More importantly, the Suns have 17 players under contract with 3 of those players on two-way deals. Meanwhile, the looming clouds of penalties continue to loiter around the team.

The Suns may face significant luxury tax payments due to their high payroll. This additional financial burden could impact the team’s long-term financial stability. To alleviate some of the cap pressure, the Suns might consider trading one of their high-salaried players. However, this comes with risks, including potential disruption of team chemistry and the need to find suitable trade partners. And it looks like the Phoenix Suns are not willing to create any disruption in the team, even if it means exceeding the crucial second apron.

Mat Ishbia’s Suns are way past the $188.9 million cap, and financial restrictions are a must at this point

Most teams have avoided crossing the $188.9 million cap (second apron) to get away from the penalties. But unfortunately, the Suns are miles past the cap. Therefore, Mat Ishbia has to now work around the financial restrictions to avoid facing the issues that affected Kevin Durant last season. The 2023-24 season ended pretty early for the Phoenix Suns. Despite having star teammates like Devin Booker, KD felt he was underutilized. Therefore, the Suns’ front office is working the extra mile to make sure the problem is resolved.

Meanwhile, with the trading of David Roddy to the Hawks for EJ Liddell, the team plans to release a recent acquisition to open a spot, likely for a point guard. But, Mat Ishbia already owes around $400 million in salary plus taxes for next season; the reason for this default goes to the Suns being way past the luxury tax’s second apron. Therefore, Mat Ishbia & Co. are with a hard cap for the 2024-25 season. This signals financial trouble, and the team needs to find a way out.

What is a Hard Cap in the NBA?

In the NBA, teams face a hard cap, a fixed salary limit they cannot exceed under certain conditions. The league typically uses a soft cap, allowing teams to go over the limit with exceptions. However, specific actions can trigger the hard cap. The teams can trigger this situation by making specific roster moves. These include acquiring players via sign-and-trade deals, using more than the taxpayer portion of the mid-level exception, or utilizing other specific exceptions like the bi-annual exception. Once hard-capped, the teams cannot exceed the designated salary limit for that league year, restricting its flexibility.

For the 2024–25 NBA season, the hard cap kicks in at two salary thresholds, referred to as “aprons.” The first tax apron is at $178,132,000, while the second tax apron is $188,931,000. Teams like the Suns, Celtics, and the Timberwolves have already been badged as Hard Capped. Therefore, their restricted transfers and monetary expenses might affect the team: gameplay and management alike. Teams may claim everything is all right, but limited trades, player additions, or contract adjustments cause disruptions.

Hard caps constrain team-building strategies, as any mismanagement or overspending could lead to penalties. Moreover, the Suns have repeatedly been hard-capped throughout the years. Therefore, this isn’t new to them. But with an outstanding roster for the upcoming season, the financial dilemmas could be the hurdles. And surely, neither the Suns nor any of the hard-capped teams would want this situation to persist.

Hopefully, the Phoenix Suns, under the guiding light of Mat Ishbia, can find a way through this problem. Meanwhile, they’ll have a massive focus on themselves, as always. The 2024-25 season is just around the corner now!

Before you go, remember to check out this crossover between BG12 and Georgia Bulldogs star Silas Demary Jr.