A lawsuit filed by two minority owners of the Phoenix Suns claims that team governor Mat Ishbia is mismanaging the franchise and using it for his personal financial gain. The suit, which was made public on October 30, 2023, in Delaware State Court, alleges that Ishbia is treating the franchise as “his personal piggy bank,” leading to significant financial losses.
The lawsuit comes as part of an ongoing legal dispute between Ishbia and minority owners Scott Seldin and Andy Kohlberg, who remained with the team following Ishbia’s acquisition in 2023 from former majority owner Robert Sarver. Seldin and Kohlberg’s lawsuit follows a previous complaint filed in August, where they accused Ishbia of denying access to essential internal documents and conducting a capital call on June 2, 2025, which they claim was designed to dilute their ownership shares.
In response, Ishbia countersued Seldin and Kohlberg, branding their lawsuit a “shakedown.” A spokesperson for Ishbia stated, “Ishbia does not own the Suns to make money for the company but he does operate it as a personal fiefdom for his own personal gain and for the benefit of his other businesses, including his mortgage company United Wholesale Mortgage.”
The recent filing contains multiple allegations, including that Ishbia extended a loan to the Suns at an exorbitant interest rate, sold naming rights to the team’s arena to his mortgage company without informing the minority owners, and leased the Phoenix Mercury’s practice facility to himself at undisclosed rates. Furthermore, Seldin and Kohlberg allege that Ishbia has created a new entity named “Player 15 Group,” which they argue holds assets that should belong to the Suns.
Regarding the capital call set for June 2, 2025, the minority owners claim Ishbia attempted to impose punitive measures to dilute their shares if they failed to meet the funding deadline. They assert that Ishbia’s actions could jeopardize his ownership status and personal net worth if his own failure to raise funds were exposed.
Michael Carlinsky, an attorney representing Seldin and Kohlberg, expressed confidence that the capital raise scheme would backfire, potentially reducing Ishbia’s stake in the Suns. “He has repeatedly abused his position as manager of the franchise to benefit himself — not the Suns,” Carlinsky stated.
In contrast, Ishbia’s spokesperson dismissed the lawsuit, asserting that it is an attempt to undermine the positive changes he has implemented since acquiring the team. The spokesperson emphasized that Ishbia has been transparent about his intentions to invest significantly in the Suns and the Mercury, stating, “Kohlberg and Seldin want to drag the organization backward.”
The lawsuit highlights ongoing tensions within the Suns’ ownership. Seldin and Kohlberg contend that since Ishbia’s takeover, both the Suns and Mercury have operated at a net loss, although specific financial figures have not been disclosed in the legal documents due to redactions. They allege that Ishbia has recklessly overspent on player and coach contracts, incurred substantial tax penalties from the NBA, and financed an expensive clubhouse to entertain guests, all while minority owners bear a portion of the costs.
Ishbia purchased a 57% controlling stake in the Suns for $2.28 billion. At the time of the sale, 14 of the 16 ownership group partners accepted Ishbia’s buyout offer, valuing the team at $4 billion. Seldin and Kohlberg were the only holdouts who did not sell their shares.
This lawsuit marks the sixth legal action against the Suns since November 2024, with previous complaints filed by current and former employees alleging discrimination, retaliation, harassment, and wrongful termination.
Ishbia remains resolute in his position, stating, “How many lawsuits have we actually lost? The answer is zero. How many will we lose? Zero.” He asserts that the organization will not be leveraged by those who seek to exploit the legal system for personal gain.