The Phoenix Suns are in the news again, and it’s not for a playoff run! Majority owner Mat Ishbia is facing his sixth lawsuit since November, this time from minority owners alleging a lack of transparency. What’s truly unfolding behind the scenes of this high-stakes ownership dispute?
The Phoenix Suns organization, under majority owner Mat Ishbia, is once again in the legal spotlight, facing its sixth lawsuit since November 2024. This latest NBA lawsuit, filed in Delaware, stems from two minority owners who allege they have been refused access to crucial internal records, intensifying an ongoing ownership dispute within the high-profile Phoenix Suns franchise.
The plaintiffs in this significant legal challenge are Andy Kohlberg of Kisco WC Sports II and Scott Seldin of Kent Circle Investments. Both individuals were part of the previous Robert Sarver era and notably rejected Mat Ishbia’s 2023 buyout offer when he acquired his controlling stake in the Suns and Mercury for a staggering $2.28 billion, opting to retain their shares despite fourteen of sixteen partners selling.
Central to the minority owners’ claims is the assertion that the Phoenix Suns have systematically denied them key financial details and internal documents, which they are entitled to as investors. Their attorneys, Michael Carlinsky and Michael Barlow, emphasized that transparency with minority owners is a fundamental requirement, not an option, especially concerning significant expenditures and capital raises that impact the Sports Business.
A focal point of their concerns is the Mercury’s new $100 million practice facility, unveiled in July 2024. Kohlberg and Seldin contend that they were deliberately kept in the dark regarding the project’s funding mechanisms, with the Suns’ only response being a claim of compliance with their LLC Agreement, further fueling the ownership dispute.
The lawsuit further details allegations of pressure tactics employed by Mat Ishbia. It states that after Kohlberg pressed for answers regarding financial transparency, Ishbia allegedly issued a new capital call a day later, seemingly designed “to exert pressure on and dilute” the shares held by the minority owners, thereby escalating the stakes in this NBA lawsuit.
Adding another layer to the complex legal entanglement, the lawsuit also suggests the possibility that Ishbia “may have entered into undisclosed side deals” with other ownership members. Such claims, if substantiated, would raise serious questions about governance and equity within the Phoenix Suns organization.
In response, the team’s attorneys have asserted that the investors demanded an $825 million buyout, which they claim implies a valuation near $6 billion—significantly higher than Ishbia’s 2023 purchase price. The Suns’ letter stated unequivocally that Ishbia does not intend to reduce or slow investments, dismissing the allegations as “baseless litigation and sensationalized press coverage.”
This latest legal challenge underscores the persistent tension that has characterized the post-takeover era for the Phoenix Suns. While the organization highlights investments and cultural shifts, the recurring ownership dispute and subsequent lawsuits against Mat Ishbia ensure that the phrase “Suns and Mat Ishbia are getting sued” remains a prominent narrative, with the future of this Sports Business battle far from settled.
