PHOENIX — Minority shareholders Andy Kohlberg and Scott Seldin accuse Phoenix Suns majority owner Mat Ishbia of running the NBA franchise for his own benefit and concealing key financial details, according to a legal brief filed on Nov. 24 in Delaware State Court.
The document answers Ishbia’s October countersuit and follows the pair’s original complaint lodged in August. In the latest filing, Kohlberg and Seldin contend that Ishbia “operates [the Suns] as a personal fiefdom” and has turned the organization into a funding source for other ventures, including his mortgage firm, United Wholesale Mortgage.
Specific Allegations
The minority owners list several alleged conflicts of interest:
- Issuing a team loan at what they call an above-market interest rate.
- Selling arena naming rights to United Wholesale Mortgage without sharing terms with other shareholders.
- Leasing the WNBA Phoenix Mercury’s practice site from a company he controls, again without disclosure.
- Creating the “Player 15 Group,” which they say holds assets that should belong to the Suns.
- Running the Suns and Mercury at a loss while profiting through his mortgage business.
Dispute Over Capital Calls
Kohlberg and Seldin also focus on two capital calls in June and July 2025. They say Ishbia structured those cash infusions to dilute their stakes unless they paid within ten days. Although both minority owners met the deadline, the filing claims Ishbia missed his own payment window and later covered the shortfall through a debt-to-equity conversion without offering them the chance to purchase the uncovered shares.
“Ishbia blundered into the very trap he set,” the brief states, adding that the maneuver could have jeopardized his status as team governor had it been exposed.
Ishbia’s Response
A spokesperson for Ishbia dismissed the complaint as “a shameless shakedown,” saying the owner was upfront about plans to invest aggressively in the Suns and Mercury after taking control in 2023. The statement argues that Kohlberg and Seldin could have sold their holdings earlier and are now “freeloading” off the franchise’s increased value.
Ishbia has said his spending helped lift the team’s valuation from roughly $4 billion to $6 billion. During a recent episode of “The Draymond Green Show,” he told the minority partners to appreciate the gains: “Instead of suing me, why don’t you just write me a letter and say thank you? Your investment is worth more.”
The case continues in Delaware, where the court will determine whether Ishbia’s actions breached his fiduciary duties or violated shareholder agreements.
Source: HoopsRumors
