Two Phoenix Suns minority partners claim governor Mat Ishbia is turning the NBA franchise into “his personal piggy bank,” according to a lawsuit unsealed Monday in Delaware state court.
Scott Seldin and Andy Kohlberg, holdovers from the previous Robert Sarver ownership group, accuse Ishbia of misconduct and financial mismanagement that they say has driven a previously profitable organization into the red.
Key allegations
The filing asserts that Ishbia:
- Issued the Suns a loan carrying an interest rate well above market levels.
- Sold Footprint Center naming rights to his mortgage company, United Wholesale Mortgage, without disclosing terms to minority owners.
- Leased the WNBA Mercury’s practice facility from a company he controls at undisclosed rates.
- Created a new entity called “Player 15 Group” that allegedly holds assets belonging to the Suns.
Seldin and Kohlberg also say Ishbia staged a June 2, 2025 capital call aimed at forcing minority partners to inject new funds on a 10-day deadline; they contend the tactic would have diluted their shares while concealing Ishbia’s own late payment.
Response from Ishbia
Ishbia, who bought a 57 percent controlling stake in February 2023 for $2.28 billion, denied the claims through a spokesperson, calling the case “a shameless shakedown dressed up as legal process.” He said he has always been transparent about plans to spend aggressively on the Suns and WNBA Mercury and invited partners to either invest alongside him or sell their stakes.
Financial impact cited
The suit states the Suns and Mercury have posted net losses since Ishbia took control, citing heavy spending on player contracts, NBA luxury-tax penalties, and what the plaintiffs describe as an “expensive clubhouse” for Ishbia’s guests. Exact figures were redacted in the court documents.
Attorney Michael Carlinsky of Quinn Emanuel Urquhart & Sullivan, representing Seldin and Kohlberg, said the alleged capital-raise scheme “backfired and will result in a substantial reduction of Mr. Ishbia’s interest in the Suns.”
Ongoing legal battles
The dispute is one of several lawsuits involving the franchise. Seldin and Kohlberg first sued in August over denied access to internal records, and five other suits filed since November 2024 by current or former employees allege discrimination, retaliation, harassment, or wrongful termination.
During a Sept. 24 appearance on ESPN’s “NBA Today,” Ishbia said the organization has not lost a lawsuit and does not settle claims it believes are unfounded.
The Suns entered Monday’s game against the Houston Rockets with an 11-6 record.
Source: ESPN
