Minority accuses Ishbia of mismanagement in the Suns: “Uses the team as his bank”

Scandal in Phoenix: Minority Owners Accuse Mat Ishbia of Misappropriation

A new controversy shakes the Phoenix Suns. Scott Seldin and Andy Kohlberg, minority shareholders of the team, have filed a lawsuit against Mat Ishbia, current majority owner, accusing him of using the franchise as “his personal safe.” The complaint, filed in the Delaware State Court, alleges mismanagement and a series of transactions with conflicts of interest. The legal dispute intensifies since Ishbia acquired the team in 2023. Seldin and Kohlberg, who maintained their holdings from the previous administration under Robert Sarver, accuse Ishbia of denying them access to internal information and of making a capital call on June 2, 2025, with the aim of diluting their shares. “Ishbia is using the Suns as his personal piggy bank, through a long list of transactions with conflicts of interest, some of which the minority shareholders are unaware of.” The accusations include a loan to the Suns with an interest rate above market, the sale of the stadium naming rights to his mortgage company without informing minority partners, the rental of the Phoenix Mercury practice facilities to himself at undisclosed rates, and the creation of a new entity called “Player 15 Group” which, according to the plaintiffs, would own assets that legitimately belong to the Suns. Regarding the June 2025 capital call, Seldin and Kohlberg claim that Ishbia attempted to punitively dilute their shares if they did not fund a capital raise within 10 days, while simultaneously concealing his own inability to meet the deadline.

“We believe this scheme went wrong and will result in a substantial reduction in Mr. Ishbia’s participation in the Suns. He has repeatedly abused his position as franchise manager to benefit himself, not the Suns.”

Michael Carlinsky, attorney for Seldin and Kohlberg

For his part, Ishbia, through a spokesperson, has denied the accusations, calling them “outright blackmail disguised as a legal process”. 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 lawsuit continues to describe how Ishbia has spent generously on player and coach contracts, incurring significant NBA tax penalties, and building an expensive “club” to entertain his guests, with co-owners paying their share of the bill. In addition, he is accused of mortgaging the future of the Suns by trading valuable draft picks and deliberately forgoing significant revenue opportunities. Ishbia acquired a majority stake of 57% for $2.28 billion. Kohlberg and Seldin were the only ones who did not accept Ishbia’s purchase offer. The August lawsuit by Seldin and Kohlberg was the sixth against the Suns since November 2024. The other five were filed by current or former employees, who alleged discrimination, retaliation, harassment, and wrongful termination. The Suns, with an 11-6 record, are preparing for their next game against the Houston Rockets.