Based in Phoenix over the past fifty NBA seasons, the Suns are now set to remain there through at least 2037 after a recent city council decision voted 6-2 in favor of arena renovation.
The Phoenix City Council reportedly approved a $230 million deal to renovate the Talking Stick Resort Arena in downtown Phoenix. The city of Phoenix will pay for $150 million worth of renovations to the arena while the Suns will pay the remaining $80 million, among other details in the deal. Following from Arizona Republic’s Jessica Boehm.
Phoenix pays $150 million for arena renovations.
Suns pay $80 million for renovations and any cost overruns.
After the renovation, Phoenix will pay $2 million annually for 12 ½ years into a new renewal and replacement fund, which will be used for future renovation needs.
Suns will pay $1 million into the new fund for 12 ½ years.
Suns will continue to operate and maintain the building, including booking concerts and other events.
Suns will continue to pay rent to the city (calculated as a percentage of annual proceeds).
Suns will build a new practice facility (estimated to cost $25 million to $50 million) somewhere in Phoenix.
Suns commit to staying in downtown through 2037 with an option to extend the lease to 2042. If the team leaves before 2037, it will face up to a $200 million fine.
Though the Suns have struggled this season as they continue with their rebuild, the decision to keep the team in Phoenix could prove to be a good one for one of the NBA’s smaller markets. Without a finalized deal, the Suns would’ve been able to leave Phoenix once their current agreement ended in 2022.
The decision to ultimately renovate the Suns’ home arena wasn’t a simple one however as protesters and supporters were both present at the council meeting. However, Suns Owner Rob Sarver called the new arena deal a win-win for both the city of Phoenix and his team.
“I’m glad that we can carry on the vision that (former owner Jerry Colangelo) had and that this council had 26 years ago to get this building built,” Sarver said.
