Phoenix Suns owner Mat Ishbia could be in a world of trouble after two minority owners filed a lawsuit against him over alleged conflicts of interest and withheld information, among others, ESPN's Baxter Holmes reported on Wednesday.
Holmes noted that the complainants—Andy Kohlberg and Scott Seldin—are “holdovers from the previous regime under former owner Robert Sarver.” ESPN obtained a redacted copy of the lawsuit, which was filed on August 21.
“The attorneys who filed it represent Kisco WC Sports II and Kent Circle Investments. Andy Kohlberg is the founder, president, and CEO of Kisco Senior Living, and Scott Seldin is the president of Kent Circle Partners. Both men were minority owners under Sarver, who sold the Suns and (Phoenix) Mercury in 2023 in the wake of an NBA investigation into Sarver's conduct and the team's workplace culture,” wrote Holmes.
Ishbia, who rose through the mortgage industry, acquired the Suns and the Mercury in 2023 in a buyout deal valued at a then-NBA record $4 billion. Among the 16 partners in the ownership group, Kohlberg and Seldin were the only ones who did not sell their controlling stake.
According to the lawsuit, Kohlberg and Seldin claimed that the 45-year-old Ishbia didn't disclose “side deals with other members of the Suns.” They added that they haven't accessed any of the team's expenditures, alleging that they were being concealed.
“They are concerned by the manager's approach towards minority owners, and want more information about certain spending and capital raises in which the manager has engaged. Transparency with minority owners is not optional, and our clients think it is critical to the success of the Suns,” said the complainants, as quoted by their legal counsel.
Ishbia took over the Suns from the embattled Sarver, who was found to have committed workplace misconduct, including racism and misogyny, during his tenure. He was suspended for a year by the NBA in 2022 and was fined $10 million.
Within days of taking control, Ishbia signed off on a blockbuster trade that landed the Suns star forward Kevin Durant. The experiment, however, didn't work, as Durant was traded to the Houston Rockets this summer.
The Suns have yet to comment on the lawsuit against Ishbia.
