Lawsuit Filed by Minority Owners of the Phoenix Suns
Two minority stakeholders of the Phoenix Suns have initiated legal action against the franchise and its main owner, Mat Ishbia, seeking access to documents to investigate the team’s business and financial status.
A redacted version of the lawsuit, filed last week in Delaware Court and acquired by The Associated Press, reveals that Kisco WC Sports II, LLC, and Kent Circle Investments, LLC, claim Ishbia and the Suns Capital Group are withholding essential information about team management from other owners.
Michael Carlinsky, a co-managing partner at Quinn Emanuel Urquhart & Sullivan and attorney for the plaintiffs, stated, “Our clients are pursuing records they are entitled to as minority owners of the Suns. They are concerned about how the manager treats minority owners and seek clarity on certain expenditures and capital raises. Transparency is vital for success.”
The lawsuit emphasizes that the plaintiffs are requesting these records to uncover potential breaches of the partnership agreement, mismanagement, and conflicts of interest.
The plaintiffs also suspect Ishbia may have “entered into various undisclosed side agreements with other investors” regarding funding for the team’s practice facility.
In a recent communication, Ishbia’s legal team indicated that Andrew Kohlberg and Scott Seldin are seeking $825 million for their ownership stake, suggesting the franchise’s valuation could reach approximately $6 billion—a 60% rise since its acquisition in 2022.
Ishbia, a mortgage executive, purchased the majority stake in the Suns and Mercury from former owner Robert Sarver for $4 billion. The sale was confirmed in February 2023, with Kohlberg and Seldin being the only minority owners who chose not to liquidate their shares during the transition.
