Phoenix Suns facing financial implications that could stem on-court

Phoenix Suns, Robert Sarver (Photo by Christian Petersen/Getty Images)
Phoenix Suns, Robert Sarver (Photo by Christian Petersen/Getty Images) /

Robert Sarver and the Phoenix Suns face further financial implications in the wake of his misconduct suspension. The franchise owner was banned for one year and fined $10 million after an investigation into a workplace troubled by racial and sexual wrongdoings.

In the aftermath of Robert Sarver’s suspension, the Phoenix Suns will face a sponsorship issue that could come to impact their on-court success in future seasons.

Paypal joined forces with the Suns in 2018 as a major sponsor, with the deal involving the prominent jersey patch on the team’s uniforms. In a statement released on Friday, Paypal CEO Dan Schulman was categoric in his company’s standing on the investigation and subsequent outcomes.

"“PayPal is a values-driven company and has a strong record of combatting racism, sexism and all forms of discrimination. We have reviewed the report of the NBA league’s independent investigation into Phoenix Suns owner Robert Sarver and have found his conduct unacceptable and in conflict with our values.”“In light of the findings of the NBA’s investigation, we will not renew our sponsorship should Robert Sarver remain involved with the Suns organization, after serving his suspension.”"

In a normal situation, a sponsor ends their contract and an NBA team has no issues in finding a replacement if required. However, one would think that potential sponsors won’t be rushing to line up outside Footprint center.

Sarver’s actions have greatly inhibited his future financial prospects, not that it will greatly impact a near billionaire . It’s an important takeaway from the outcome, even if many think the initial NBA consequence didn’t fit the actions.

The 60-year-old owner can cut costs to make up for the sponsorship losses and any other financial impacts. The issue with that is it affects everyone else but Sarver. Employees could lose their jobs and from an on-court perspective, the Suns simply may not possess the same level of talent.

It’s taken over a decade for Phoenix to re-enter the NBA’s luxury tax scenario, a move they’ve finally made after two successful seasons. Facing financial constraints, there’s a genuine chance that Sarver could use the salary cap as his main way of reducing costs.

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Of course, there’s the possibility he takes it on the chin and cops the impact himself. If he were to remain as Suns owner, then the hope is that he returns knowing that he owes the fans, and especially his employees, whom his actions have greatly hurt.