A pair of Phoenix Suns minority house owners allege that Mat Ishbia is utilizing the franchise as “his private piggy financial institution” and that the Suns’ governor has sunken a as soon as worthwhile workforce workforce into the purple, in response to a lawsuit claiming misconduct and mismanagement by Ishbia.
The submitting in Delaware State Court docket, which was made public Monday and obtained by ESPN, is the newest flip in an ongoing authorized battle between Ishbia, who purchased the workforce in 2023 from embattled former majority proprietor Robert Sarver, and Scott Seldin and Andy Kohlberg, who’re holdovers from the earlier possession regime below Sarver.
Seldin and Kohlberg sued the workforce in August, alleging that Ishbia refused entry to inner information and that he held a capital name on June 2, 2025, “to exert stress on and dilute” the possession shares held by the Suns’ minority house owners.
Ishbia countersued the 2 males final month and known as their lawsuit a “shakedown” in an announcement via a spokesperson.
“Ishbia doesn’t personal the Suns to become profitable for the corporate however he does function it as a private fiefdom for his personal private achieve and for the good thing about his different companies, together with his mortgage firm United Wholesale Mortgage,” the newest submitting states. “The fact is that Ishbia is utilizing the Suns as his private piggy financial institution, together with via a prolonged listing of conflicted transactions — solely a few of which the minority house owners are conscious of.”
Amongst a number of allegations within the newest submitting, Seldin and Kohlberg say that Ishbia prolonged a mortgage to the Suns at an rate of interest far above market, that he offered the naming rights to the Suns’ enviornment to his mortgage firm with out disclosing particulars to the minority companions, that he leased the Phoenix Mercury’s follow facility from himself at undisclosed charges and that he established a brand new entity — known as the “Participant 15 Group” — that they are saying seems to carry property that rightfully belong to the Suns.
Concerning the June 2, 2025 capital name, Seldin and Kohlberg additionally say that Ishbia tried to punitively dilute their shares in the event that they did not fund a capital increase on a 10-day deadline whereas hiding his personal failure to fund by the deadline.
“In different phrases, Ishbia blundered into the very lure he set for the minority house owners and confronted a devastating dilution of his possession curiosity if his failure was found — a failure that will wipe off his internet price and put his continued standing as an NBA workforce proprietor and governor in jeopardy,” the submitting states.
In an announcement, Michael Carlinsky of Quinn Emanuel Urquhart & Sullivan, an lawyer representing Seldin and Kohlberg, stated in a part of that capital increase, “We consider this scheme backfired and can end in a considerable discount of Mr. Ishbia’s curiosity within the Suns. He has repeatedly abused his place as supervisor of the franchise to learn himself — not the Suns. We sit up for transferring ahead on an expedited foundation and presenting our case to the court docket.”
Ishbia, via a spokesperson, has denied the allegations.
“This is not a lawsuit; it is a shameless shakedown dressed up as authorized course of,” a spokesperson for Ishbia stated in an announcement to ESPN. “From day one, Mat Ishbia was clear that he was going to do issues in a different way. Opposite to how the workforce was beforehand managed, Mat made it very clear he would make investments considerably into the Suns and Mercury. He instructed all of the buyers that they might step up with him or promote their stake and step apart. Kohlberg and Seldin stayed in and now they’re attempting to freeload off the worth Mat created.
“Kohlberg and Seldin wish to drag the group backward, they usually overtly admit on this submitting that investing within the workforce and its followers ‘makes no enterprise sense.’ They’re advocating neglect. They’re free to promote their shares within the open market and if they do not, they need to be ready to lose this lawsuit and take part in Mat’s continued investments within the groups and group.”
Seldin and Kohlberg additionally say that the Suns and Mercury have been working at a internet loss since he got here aboard in 2023. The precise figures are unknown, as they’re redacted within the newest authorized submitting.
“Ishbia has spent wildly on participant and coach contracts, incurred large tax penalties from the NBA, and constructed himself an costly clubhouse to carry court docket and hand out favors to his company — along with his co-owners footing their share of the invoice,” the submitting continues. “On the identical time, Ishbia has mortgaged the Suns’ future by buying and selling away worthwhile draft picks for years to return and has knowingly foregone vital income alternatives, purportedly within the service of his ‘give attention to successful and success’ and the Suns’ fan expertise.”
Ishbia purchased a 57% controlling stake for $2.28 billion, as ESPN reported then, with Sarver promoting his 37% stake for $1.48 billion. On the time of the 2023 sale, 14 of the 16 companions within the Suns’ possession group accepted Ishbia’s buyout supply at a $4 billion valuation. Kohlberg and Seldin have been the one two who didn’t promote.
The August lawsuit from Seldin and Kohlberg was the sixth in opposition to the Suns since November 2024. The opposite 5 have been by present or former workers. A few of their allegations embrace discrimination, retaliation, harassment and wrongful termination.
Throughout a Sept. 24 look on ESPN’s “NBA Immediately,” Ishbia addressed the lawsuits.
“Clearly anybody can file a lawsuit for any motive they need, for something they need,” Ishbia stated. “What number of lawsuits have we truly misplaced? The reply is zero. What number of will we lose? Zero.
“The best way I have a look at it a little bit in a different way than different folks is we do not settle. We do not settle with somebody. You wish to say, give me $30,000 and I will not file a lawsuit? I say file a lawsuit. We did not do something flawed. If we do one thing flawed, we deal with folks, however I am not going to be leveraged by folks.”
The Suns are 11-6 getting into Monday’s sport in opposition to the Houston Rockets.