Drama in the desert! The Phoenix Suns are once again making headlines, but this time it’s not about the scoreboard. Minority owners are suing Mat Ishbia over alleged denied access to internal records and major financial concerns. What’s really happening behind the scenes of this NBA powerhouse? You won’t believe the twists in this ownership saga.
A significant legal challenge has emerged within the Phoenix Suns organization, as the remaining minority owners from the previous ownership group have initiated a lawsuit against current owner Mat Ishbia. The core of their complaint alleges a deliberate refusal by Ishbia to grant access to crucial internal records, sparking concerns over transparency and governance within the high-profile NBA franchise.
The lawsuit, filed on August 21, specifically names companies associated with Andy Kohlberg and Scott Seldin. These individuals are notable as the only minority owners who opted not to sell their shares when Robert Sarver’s ownership group transitioned to Mat Ishbia in 2023, positioning them as direct holdovers with a vested interest in the team’s operational integrity.
Attorneys Michael Carlinsky and Michael Barlow of Quinn Emanuel, representing Kohlberg and Seldin, articulated their clients’ motivations in a statement, emphasizing a right to obtain records as minority owners. They expressed apprehension regarding Ishbia’s approach towards minority stakeholders and sought further clarity on certain spending habits and capital raises, asserting that transparency is not merely optional but critical for the Suns’ success.
The complaint outlines a contentious timeline, beginning in September 2024 when Kohlberg reportedly entered buyout negotiations with an advisor to Ishbia. These discussions reportedly extended into 2025, culminating in a request for Ishbia’s final response by June 1. Crucially, the attorneys claim that Ishbia subsequently initiated a capital call on June 2, a move they characterize as an attempt to exert pressure on and dilute the ownership shares held by the minority partners.
In response, a letter from attorneys representing the Suns and Ishbia, also obtained by ESPN, countered with claims that Kohlberg and Seldin had demanded an $825 million buyout for their ownership stake. This figure, if met, would value the Phoenix Suns organization at approximately $6 billion, representing a substantial 60% increase from its valuation when Ishbia acquired his controlling interest just a year prior in 2023.
The Suns’ letter firmly stated that the organization holds no obligation to buy out the minority owners at their demanded price. Furthermore, it emphasized Ishbia’s unwavering commitment to investing in the company and its teams, underscoring a resolve to position the Suns and Mercury for championship success, foster a positive team culture, impact the Phoenix community, and enhance the fan experience, suggesting that dissenting owners should pursue sales consistent with their agreements if priorities diverge.
This particular lawsuit is not an isolated incident but rather the sixth legal challenge faced by the Suns organization since November 2024. The preceding five lawsuits, initiated by current or former employees, have brought forth serious allegations including discrimination, retaliation, harassment, and wrongful termination, painting a picture of a franchise grappling with multiple internal and external legal pressures.
The accumulation of these legal battles signals a turbulent period for the Phoenix Suns, raising questions about management practices and corporate governance. The outcome of this specific dispute with minority owners could have significant ramifications for the team’s future financial structure and public image, further intensifying scrutiny on Mat Ishbia’s leadership and the overall stability of the organization.
