Scott Seldin and Andy Kohlberg, minority owners of the Phoenix Suns, are suing majority owner Mat Ishbia.[1]They allege that Ishbia “is using the franchise as his ‘personal piggy bank’ and that the Suns’ governor has sunken a once-profitable team into the red.”[2] Ishbia countersued Seldin and Kohlberg last month after they originally filed suit against Ishbia in August.[3]
Ishbia bought the team in 2023, and the suit was filed in Delaware state court, alleging misconduct and mismanagement by Ishbia.[4] The suit alleges that Ishbia did not allow access to internal records and held a capital call on June 2, 2025, “‘to exert pressure on and dilute” the ownership shares held by the Suns minority owners.[5] There are also allegations that Ishbia extended a loan to the Suns with an interest rate above the market, sold naming rights to the arena to his own mortgage company and did not tell the minority partners, and leased the practice facility to himself at an undisclosed rate.[6] There are also allegations that he established the “Player 15 Group” which holds assets that allegedly belong to the Suns.[7]
The filing states that “Ishbia blundered into the very trap he set for the minority owners and faced a devastating dilution of his ownership interest if his failure was discovered.”[8]
A spokesperson for Ishbia has denied the allegations and stated, “This isn’t a lawsuit; it’s a shameless shakedown dressed up as legal process.”[9]
[1] Baxter Holmes, Minority owners claim Ishbia mismanaging Suns in new lawsuit, ESPN (Nov. 24, 2024)
[2] Id.
[3] Doug Haller and Mike Vorkunov, Lawsuit Claims Suns Owner Mat Ishbia Treated Team Like His ‘Personal Piggy Bank’, The Athletic (Nov. 24, 2024)
[4] Holmes, supra note 1.
[5] Suns’ Mat Ishbia sued by minority owners over alleged fraud, Reuters (Nov. 25, 2024)
[6] Holmes, supra note 1.
[7] Id.
[8] Supra note 5.
[9] Haller and Vorkunov, supra note 1
Leave a Reply