Minority Suns Owners Sue Team: Allegations of Denied Access to Internal Records
In a news story that shakes the basketball world, two minority owners of the Phoenix Suns, who remained from the previous regime under former owner Robert Sarver, have filed a lawsuit against the team. The main accusation is the denial of access to internal records by the current Suns owner, Mat Ishbia. The lawsuit, filed in Delaware on August 21st and sealed, has revealed a recently redacted version. The plaintiffs, represented by Kisco WC Sports II and Kent Circle Investments, are led by Andy Kohlberg and Scott Seldin, respectively. Both individuals were minority owners during Sarver’s management, who sold the Suns and the Mercury in 2023. Ishbia acquired a majority stake of 57% for $2.28 billion, while Sarver sold his 37% stake for $1.48 billion. At the time of the sale, most of the Suns’ partners accepted Ishbia’s purchase offer, with Kohlberg and Seldin being the only ones who did not sell their shares.The Suns have declined to comment on the lawsuit, which is the sixth against the organization since November 2024. The other five lawsuits were filed by current or former employees, with allegations including discrimination, retaliation, harassment, and wrongful termination. In the complaint, Seldin and Kohlberg’s lawyers claim that Kohlberg initiated purchase negotiations in September 2024 with an advisor to Ishbia. Kohlberg’s conversations continued until 2025, requesting a final response from Ishbia before June 1st. The lawyers allege that Ishbia convened a capital call the following day, June 2nd, to “exert pressure and dilute” the shares of the Suns’ minority owners. Lawyers also mention that Ishbia may have made secret deals with other members of the Suns, and that they have been unable to obtain information about the team’s expenses. In addition, they question the financing of the Mercury’s practice facilities, valued at $100 million, which were presented in July 2024. On Tuesday, the Suns and Ishbia’s lawyers sent a letter to Kohlberg and Seldin’s lawyers. In the letter, the Suns claim that Kohlberg and Seldin demanded that the team buy their stake for $825 million, which would value the team at approximately $6 billion, a 60% increase since Ishbia bought his majority stake in 2023. The Suns claim they have no obligation to buy them.Our clients demanded to obtain the records to which they are entitled as minority owners of the Suns. They are concerned about the manager’s approach to the minority owners and want more information about certain expenses and capital increases in which the manager has participated. Transparency with the minority owners is not optional, and our clients believe it is fundamental to the success of the Suns.
Michael Carlinsky and Michael Barlow, Representatives of the Minority Owners
