Phoenix Suns move into new offices in downtown warehouse district - Phoenix Business Journal
The new office space gives Suns owner Mat Ishbia a fresh start. The Phoenix Suns and Phoenix Mercury teams were purchased by owner Mat Ishbia in 2023, following a report from the NBA that found that the team's former owner, Robert Sarver, had engaged in inappropriate behavior in the workplace. Ishbia, who bought the teams, opened the team’s new office headquarters in downtown Phoenix on April 4. The Lincoln Union building, a renovated warehouse at 475 E. Lincoln Street, can hold over 400 employees and is part of Ishbia's newly created sports, entertainment and real estate operating and investment company, Player 15 Group. The new offices will also serve as a recruitment and retention tool for the basketball organization's front office.
Published : 4 weeks ago by Brandon Brown in Business
When Phoenix Suns and Phoenix Mercury owner Mat Ishbia bought the teams in early 2023, the organization wasn’t known for having a great workplace culture.
An in-depth report from the NBA found that the team’s former owner, Robert Sarver, had engaged in acts of racism, misogyny and other inappropriate behavior in the workplace. Other reporting detailed similar behavior by other executives with the teams. Those findings, and the resulting punishment from the NBA, led Sarver to sell the team.
From his initial press conference in February 2023, Ishbia said he wanted to create a positive workplace culture for Suns and Mercury employees. As part of those efforts, Ishbia on April 4 opened the team's new office headquarters in downtown Phoenix.
The offices are located just a few blocks away from Footprint Center in the Lincoln Union building, a renovated warehouse at 475 E. Lincoln Street. The space can hold more than 400 employees; the Suns currently employ around 350 people.
The building is part of Ishbia’s newly created sports, entertainment and real estate operating and investment company called Player 15 Group. In fact, the company's branding is on the building, along with the Suns and Mercury logos.
At a time when a lot of companies are cutting back on office space with more worker opting to work from home, Ishbia told the Business Journal he needed to invest in a new office to enhance the company's culture.
“You build great organizations and great businesses by taking care of your people,” Ishbia said. “By investing in office space, I'm investing in team member culture and doing right by our people.”
Ishbia acquired the existing building and the land next to it – totaling 7.3 acres – for nearly $39 million in October. Besides renovating the offices to fit the needs of the Suns and Mercury, the organization is building a practice facility next to the offices dedicated to the WNBA team. The total development of the project is estimated to be $100 million.
Along with having an open work environment to encourage collaboration, the 76,000-square-foot headquarters complex includes a cafeteria, indoor and outdoor basketball courts, an arcade, pickleball court, putting green, meeting rooms, lounges and a workout facility. The Mercury's facility is expected to be completed this summer ahead of the WNBA All-Star Game.
“There's an arms race across all sports to build practice facilities. The Suns have an amazing practice facility. The Mercury are going to have the best practice facility. You don't see a lot of teams not investing in space for the business side,” said Josh Bartelstein, the Suns CEO.
Both Ishbia and Bartelstein said the new offices will not only help them create the workplace culture they want, it will also serve as a recruitment and retention tool for the basketball organization’s front office.
“It's all set up in an amazing way where not only the best who want to come join us, but the best will want to stay and work at our company,” Ishbia said.
The campus was designed by von Staden Architects and construction was led by Okland Construction. Transwestern’s Sports & Entertainment Advisory Group led the real estate transaction and assisted with the design, construction and fit-out process.
Future of the former office space
The Suns former offices were in the Footprint Center in downtown Phoenix. Now the team is trying to come up with ideas on how to use that space.
Ishbia said there has not been a specific plan decided on for the 45,000 to 50,000 square feet where the offices used to be, but said it could end up as a restaurant or an area focused on children's activities.
“It's going to help the fan experience because we open up more space,” Ishbia said. “Right now, it's in the initial stages, but we are going to repurpose it.”
The new office space is one of several major moves Ishbia and Bartelstein have made in just over a year since taking over the team. On the basketball side, the team has made significant trades that brought in marquee players such as Kevin Durant and Bradley Beal. On the business side, under Ishbia, the Suns have brought in a new food and beverage partner at Footprint Center, changed its television broadcast partner and acquired a G-League team.
The Suns and Mercury also both won bids to host the NBA and WNBA All- Star Games, respectively. The WNBA All-Star Game will be played in July 2024 and the NBA All-Star Game will be in February 2027.
Topics: Phoenix Suns