Some Phoenix Suns season ticket holders are getting some unwanted sticker shock from the increase in the price of tickets, but with Project 201, it is a necessary evil.
The Phoenix Suns have increased their season ticket prices for next season, much to the disdain of those who hold them. The team says that the average ticket will go up between 6 to 16 percent but considering the way averages work, some fans are seeing even larger increases.
Unfortunately, the ticket increase is a necessary evil.
As much as it would be nice if stuff were free, my lifetime of meandering through society has proven to me this is almost never the case, and usually, stuff–at least cool stuff that people want–often cost more than what is expected.
It would also be nice if the Phoenix Suns unleashed boundless benevolence, but Robert Sarver didn’t become a billionaire by giving things out for free, and the organization just invested a yacht-full of money on which they plan to see a return.
On what, you might ask? Project 201.
Remember all those renovation renderings with new visually impressive video boards, state-of-the-art audio system, 5G technology, an uncanny amount of sports bars? That stuff costs money. A lot of it. An estimated $230 million.
Here is where detractors and those in sticker shock denial might argue, “But the city of Phoenix paid for most of that! Why is the cost being transferred to ticket holders?”
Good question. There are a lot of other similar questions on the subject as well, so let’s examine it.
“But the city is paying for most of the renovations.”
Of the $230 million costs of the renovation, the City is footing $150 million of it. That puts an $80 million burden on the Phoenix Suns. In addition to those contributions, part of the agreement required the Suns to build a new practice facility, completely funded on their own.
That facility, which is currently under construction, will cost around $50 million dollars.
On top of all that, the Suns agreed to contribute another $10 million toward community benefits (including $2.6 million towards pre-school programs).
So, when you add it all up, the Suns are dishing out $140 million and at the end of the day, the franchise is a business that will most certainly recoup that money one way or another.
One of those ways, unfortunately for fans, is an increase in ticket pricing.
To put it more pragmatically in a poor and admittedly condescending analogy: you have to pay for your new toys. And make no mistake, there are lots of new toys.
Some of the revenue generation will come in the form of bars with what will likely be even more expensive beers, wine, and cocktails. Probably hotdogs too.
The Suns are banking on the overall feel will be more upscale and that will be worth it. The fans will have to decide for themselves.
“But they shouldn’t increase prices because the Suns aren’t good”
This, “But the product the Suns put out on the floor isn’t good, therefore they have no right to charge for it,” argument sounds legit on the surface but falls flat with a little examination.
Firstly, yes, the Phoenix Suns have only had one winning record in the last decade (2013-2014). However, this season, the Suns have already won more games than Devin Booker has one in a single season his entire career.
Sure, one season does not make a trajectory, but there will no doubt be a plethora of articles written across all platforms at the conclusion of this season that this year was a huge step in the right direction for the Phoenix Suns.
We will also likely see a fair share of, “If only,” articles due to the team’s abhorrent luck they have suffered through suspensions, injuries, and illnesses.
So the team is getting better, but in this era of the NBA, if you want the Suns to advance to a championship-caliber, they need to attract big-name free agents. And while the dude splitting a pair of rafter seats with his neighbor might be able to look past an outdated arena, NBA superstars looking for a new home will not.
We can cherry-pick niceties here and there, but the fact remains that Talking Stick Resort Arena is outdated. Is it functional? Absolutely. But it is functional the same way laminate countertops are functional for kitchens. They allow you to prepare food on them just the same as marble but aren’t going to attract any top chefs to buy houses with them in it.
You can chicken-or-egg this if you want, but building a state-of-the-art venue will attract better players (as well as keep the ones they have), and thus lead to the Suns winning more games.
And like I said before, you have to pay for your new toys.
“Well, tax money shouldn’t be going to sporting arenas anyway.”
I’m not going to argue with you here. In an ideal, sports ownership Utopia, billionaires should pay for their own stadiums and arenas.
But a few things: most notably we do not live in Utopia and have must work with the cards we have been dealt. In this case, the city of Phoenix owns Talking Stick Resort Arena and the Phoenix Suns simply rent it out.
In 2019, the team extended said lease until 2037. If the team breaks that lease, they are subject to a $200 million fine.
This might be a bad analogy, but let’s say I own a home and rent it out to a great tenant for 25 years. Then, the tenant says, “This place is getting outdated. I want to do some renovations on it.” Then it would be incumbent on me as the landlord to foot the bill for all of the renovations.
In the case of the Phoenix Suns renting out Talking Stick Resort Arena, the renter is paying for 35 percent of these renovations (plus building a casita in the backyard in the form of a practice facility).
Side note: as part of the renewed lease agreement, the Suns’ rent went up around $1.5 million.
And if it makes you feel any better, the $150 million the city is putting up comes from a 1% hotel tax and a 2% car rental tax, two taxes that are largely paid by out-of-state visitors rather than in-state residents.
Of course, that money could be going to any number of other public ventures, but perhaps the non-sports lovers can rest assured little to none of their own tax dollars will help fund it, depending on how many staycations they take.
“But couldn’t the Suns just build a new stadium?”
Sure, the City could have let the Suns walk and Robert Sarver could have built a new arena elsewhere, but that would mean three things. One, the city would be left with somewhat of a white elephant in a downtown they are continually trying to revitalize.
Two, the arena would likely be built somewhere in the outskirts of the Valley where attendance could drop substantially, which who knows, might tempt the team to change their name to the Arizona Suns.
Thirdly and poignantly, it would probably cost more than $150-$250 million causing ticket prices to skyrocket more than they already are.
So in the end, yes it stinks they had to raise ticket prices, but fans will be getting a higher quality experience, it will hopefully make Phoenix a desired destination for top-tier free agents, and the deal is a win-win for the city and the team.
Some people will argue (and have) the City could have negotiated a better deal. Maybe. But at some point, a compromise had to be made and one was. The City Council voted 6-2 in favor of the deal, so here we are.
Anytime prices go up it is no fun but in this case, it was a necessary evil to keep the Suns at Talking Stick and provide one of the most state-of-the-art arenas in the NBA. I, personally, look forward to seeing it completed.