Urgent Update: Phoenix Suns Minority Owners Launch Lawsuit
A pair of minority owners of the Phoenix Suns have filed a lawsuit against the team, alleging that current owner Mat Ishbia has unlawfully denied them access to crucial internal records. The lawsuit, filed in Delaware on August 21, 2024, has just come to light, raising significant concerns about transparency within the organization.
Why This Matters NOW: As the Suns navigate a tumultuous period following the sale of the team, this legal action highlights growing tensions between Ishbia and minority owners who are seeking clarity on financial dealings and management practices. The lawsuit is a critical development for the franchise, especially as it seeks to rebuild its reputation after previous ownership controversies.
The lawsuit involves minority owners Kisco WC Sports II and Kent Circle Investments, represented by attorneys Michael Carlinsky and Michael Barlow. Both owners were part of the previous regime under former owner Robert Sarver, who sold the Suns and Mercury in 2023 following an NBA investigation into workplace culture. Ishbia acquired a controlling stake of 57% for $2.28 billion, while Sarver retained a 37% stake valued at $1.48 billion.
In a statement released Wednesday, the attorneys emphasized that “transparency with minority owners is not optional” and asserted their clients’ right to access records concerning expenditures and capital raises. They expressed concern over Ishbia’s management style, which they claim undermines the interests of minority stakeholders.
The Suns have not commented on the lawsuit, which marks the sixth legal action against the franchise since November 2023. Previous lawsuits have involved allegations of discrimination, retaliation, and harassment from current and former employees.
As tensions escalate, the lawsuit details significant negotiations that took place between Kohlberg and Ishbia. Kohlberg reportedly initiated discussions for a buyout in September 2024, with ongoing talks extending into 2025. The attorneys allege that Ishbia pressured minority owners during a capital call on June 2, 2025, which they claim was intended to dilute their ownership stakes.
Additionally, the complaint raises alarms about undisclosed side deals potentially made by Ishbia with other members of the organization. The minority owners have demanded clarity on the funding of the Mercury’s new $100 million practice facility, unveiled in July 2024. Their requests for financial transparency have reportedly been met with resistance from Ishbia.
In a letter obtained by ESPN, Ishbia’s legal team responded to the claims, stating that Kohlberg and Seldin have requested an exorbitant $825 million to buy out their shares, a valuation that would elevate the team’s worth to approximately $6 billion, representing a 60% increase since Ishbia’s acquisition. The Suns’ management firmly rejected these demands, asserting that they are not obliged to proceed with the buyout.
The response from Ishbia’s team emphasized his commitment to investing in the team and fostering a positive organizational culture. “Make no mistake,” the letter stated, “Ishbia will continue doing whatever it takes to position the Suns and Mercury to win championships.”
This lawsuit will undoubtedly continue to unfold, and its implications could reshape the governance of the Suns as they work to establish a new era. Fans and stakeholders alike are eagerly watching the developments, as the future of the franchise hangs in the balance.
Keep an eye on this story for further updates on the legal proceedings and their impact on the Suns and the greater Phoenix community.
