Minority owners claim Mat Ishbia’s missed payments could slash his Suns control
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Phoenix, Dec. 9, 2025 — A newly unsealed court filing alleges that Phoenix Suns governor Mat Ishbia failed to meet two self-imposed capital-call deadlines, a shortfall that minority partners Scott Seldin and Andy Kohlberg say could cut his ownership share from 83.2% to 32.7%.
What the lawsuit says
The document, filed Nov. 24 in Delaware State Court and obtained Tuesday, claims Ishbia converted debt to equity to cover his portion of a $250 million capital call issued on June 2. According to the complaint, that maneuver left Seldin and Kohlberg—who collectively hold 13% of the franchise—funding about 38% of the raise “under protest.”
When the first raise came in short, Ishbia scheduled another on July 8 with the same 10-day deadline, which the minority owners say they also paid under protest. They later sought internal financial records and sued in August after receiving only a one-page summary.
Possible impact on majority control
The Suns’ operating agreement allows investors to buy unfunded shares when a partner misses a capital call. Seldin and Kohlberg argue that Ishbia’s missed payments entitle them to purchase his stake at $10 million per unit—the price he set for the raises—potentially giving them roughly 60% of the Suns and the WNBA’s Phoenix Mercury.
“The $250 million capital call … was designed to allow Mat Ishbia to unfairly increase his ownership stake by severely diluting the minority owners,” attorney Michael Carlinsky said in a statement.
Ishbia’s response
A spokesman for Ishbia dismissed the filing as containing “nothing new,” characterizing it as a “publicity stunt” by partners “unwilling to take responsibility and invest in the team.”
Background on the dispute
Ishbia acquired a 57% controlling interest in the Suns for $2.28 billion in 2023, while former majority owner Robert Sarver sold his 37% share for $1.48 billion. Fourteen of 16 partners accepted Ishbia’s buyout offer at a $4 billion valuation; only Seldin and Kohlberg kept their stakes.
The relationship soured in September 2024 when Kohlberg began buyout talks. Ishbia countersued in October, accusing both men of demanding an “exorbitant premium” for their holdings. Team correspondence reviewed by ESPN shows the duo sought $825 million—implying a $6 billion franchise value—earlier this year.
Their latest action is the seventh lawsuit involving the Suns since November 2024, joining claims by current and former employees alleging discrimination, retaliation, harassment and wrongful termination.
No hearing date has been set for the new filing.
Source: ESPN
