Scandal in Phoenix: Minority Owners Accuse Mat Ishbia of Misappropriation
A new legal front opens for the Phoenix Suns, as two minority owners have filed a lawsuit against the majority owner, Mat Ishbia. The accusations are serious: they indicate that Ishbia is using the franchise as his “personal piggy bank” and that, under his management, the team has gone from being profitable to generating losses. The lawsuit, filed in Delaware State Court and obtained by our reporters, is the latest chapter in a legal battle that has been ongoing since Ishbia acquired the team in 2023. The plaintiffs, Scott Seldin and Andy Kohlberg, were part of the previous ownership group led by Robert Sarver. 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 “pressuring and diluting” the shares of minority owners.Among the accusations, it is highlighted that Ishbia granted a loan to the Suns with an interest rate higher than the market, sold the stadium naming rights to his mortgage company without informing the minority partners, leased the Phoenix Mercury training facilities to himself at undisclosed rates, and created a new entity, the “Player 15 Group”, which allegedly owns assets that should 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 concealing his own inability to meet the deadline.“Ishbia doesn’t own the Suns to make money for the company, but rather operates it 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 alleges.
Legal document
Ishbia, through a spokesperson, has denied the accusations, calling them “outright blackmail.”“We believe this scheme failed and will result in a substantial reduction in Mr. Ishbia’s involvement in the Suns. He has repeatedly abused his position as franchise manager to benefit himself, not the Suns,” stated Michael Carlinsky, lawyer for Seldin and Kohlberg.
Michael Carlinsky
Seldin and Kohlberg also point out 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. “Ishbia has spent recklessly on player and coach contracts, incurred huge NBA tax penalties, and built an expensive clubhouse to meet and grant favors to his guests, with his co-owners paying their share of the bill,” the lawsuit continues. “At the same time, Ishbia has mortgaged the Suns’ future by trading valuable draft positions for years and has given up significant revenue opportunities, allegedly in the service of his ‘focus on winning and succeeding’ and the experience of the Suns fans.” In 2023, Ishbia acquired a majority stake of 57% for $2.28 billion. Kohlberg and Seldin were the only two partners who did not accept Ishbia’s buyout offer at that time. This latest lawsuit is the seventh filed against the Suns since November 2024. Others have been filed by current or former employees, with allegations including discrimination, retaliation, harassment, and wrongful termination. The Suns, with an 11-6 record, are preparing for their next game against the Houston Rockets.“From day one, Mat Ishbia was transparent that he was going to do things differently. Contrary to how the team was previously managed, Mat made it very clear that he would invest significantly in the Suns and Mercury. He told all investors that they could join him or sell their stake and step aside. Kohlberg and Seldin stayed and are now trying to take advantage of the value that Mat created,” said Ishbia’s spokesperson.
Mat Ishbia’s Spokesperson
