Scandal in Phoenix: Minority Owners Accuse Mat Ishbia of Mismanagement in the Suns
A legal conflict shakes the Phoenix Suns. Minority owners of the team allege that Mat Ishbia, current governor of the franchise, is using the Suns as his “personal piggy bank.” The accusation, presented in a lawsuit, points to alleged mismanagement that has led the organization to financial losses. The legal dispute is the most recent in a series of controversies involving Ishbia, who acquired the team in 2023. The plaintiffs, Scott Seldin and Andy Kohlberg, former partners of the previous majority owner, Robert Sarver, allege that Ishbia has committed various irregularities. Seldin and Kohlberg argue that Ishbia has denied them access to internal information and that he convened a capital call on June 2, 2025, with the aim of diluting their shareholdings. Ishbia, for his part, has described the lawsuit as an attempt at “blackmail”.“Ishbia doesn’t own the Suns to make profits for the company, but operates them as a personal fiefdom for his own benefit and for the benefit of his other businesses, including his mortgage company United Wholesale Mortgage,” the lawsuit states.
Legal document
Among the accusations, it is highlighted that Ishbia granted a loan to the Suns with an interest rate higher than the market. He is also accused of selling the stadium naming rights to his mortgage company without informing the minority partners. In addition, it is reported that Ishbia leased the Phoenix Mercury training facilities to himself at undisclosed rates and established a new entity, “Player 15 Group”, which allegedly owns assets that should belong to the Suns.
Regarding the capital call of June 2025, Seldin and Kohlberg claim that Ishbia attempted to dilute their shares if they did not contribute capital within 10 days, concealing his own inability to meet the deadline. Michael Carlinsky, a lawyer for Seldin and Kohlberg, stated that this plan “backfired and will result in a substantial reduction of Mr. Ishbia’s stake in the Suns”. Ishbia, through a spokesperson, has denied the accusations.Seldin and Kohlberg also claim that the Suns and Mercury have operated at a net loss since Ishbia took control in 2023. The exact figures have not been revealed, as they are redacted in the lawsuit. The current lawsuit is the seventh filed against the Suns since November 2024. Others have been filed by former employees, alleging discrimination, retaliation, harassment, and wrongful termination. In 2023, Ishbia acquired a majority stake of 57% for $2.28 billion, while Sarver sold his 37% stake for $1.48 billion. Kohlberg and Seldin were the only ones who did not accept Ishbia’s purchase offer at that time. The Suns suffered a defeat against the Houston Rockets by 114-92, remaining with a record of 11-7.“This is not a lawsuit; it’s shameless blackmail disguised as a legal process,” declared a spokesperson for Ishbia.
Mat Ishbia Spokesperson
