After missing the NBA playoffs and play-in tournament with the largest payroll in league history, the Phoenix Suns have fired head coach Mike Budenholzer, the team announced Monday.

"Competing at the highest level remains our goal, and we failed to meet expectations this season. Our fans deserve better. Change is needed," the team said in a statement.

For the third consecutive offseason, Suns owner Mat Ishbia, CEO Josh Bartelstein and general manager James Jones are changing coaches. Phoenix finished 36-46.

Budenholzer had issues connecting with the locker room this season, with team officials concluding that the roster failed to respond to the 2021 NBA championship coach, sources said. Budenholzer's inability to coexist with his players centered around the franchise's cornerstone, Devin Booker, and went down the roster, those sources said.

The Suns will now hold a wide-ranging coaching search, sources said.

Budenholzer accepted the Suns' job on a five-year, $50 million contract last offseason -- hired for his winning pedigree and schemes on both sides of the court.

The Suns became the third team in NBA history to start 8-1 or better and miss the playoffs, joining the 1970-71 Detroit Pistons and 2001-02 Milwaukee Bucks, according to ESPN Research. In March and April, the Suns lost eight straight games all by double digits, which was the most consecutive losses by 10-plus points in franchise history.

A year after winning 49 games, earning the sixth seed and being the No. 13 defensive team under Frank Vogel in 2023-24, the Suns ranked as the third-worst team in the NBA in defensive efficiency this season -- including the second worst since the All-Star break, according to ESPN Research.

The Suns were 26-15 when Booker, Kevin Durant and Bradley Beal played last season with a plus-6.6 net efficiency -- compared to just 19-18 and minus-4.1 net efficiency during this campaign, per ESPN Research.

Over two years into ownership, Ishbia has shown supreme aggressiveness and willingness to spend for players, coaches and resources for the organization. This iteration of the team did not work, however, and the franchise is set to retool around Booker.

The Suns had a 10-18 record since the All-Star break. They went 12-32 against teams with a .500 record or above this season -- compared to 28-25 against such teams in 2023-24.

This marks the first action in a summer of change coming to the Suns. Phoenix is expected to engage in trade conversations involving Durant and will have discussions on the future of Beal, according to sources. Multiple teams will seriously pursue Durant, who finished another stellar season, and the franchise is expected to work with Durant and his business partner and Boardroom CEO Rich Kleiman on the next landing spot for the future Hall of Famer.

Beal has two years and $111 million remaining on his contract.

Durant was nearly traded to the Golden State Warriors at the trade deadline in February before making clear in league circles that he did not want to return to his former organization. He will be in the final year of his deal next season.

The Suns went 33-29 when Durant played and 3-17 when he didn't this season.