Fresh trouble looms as Minority owners of Phoenix Suns and Mercury escalate tensions with lawsuit against controlling owner Mat Ishbia

Tensions inside the Phoenix Suns and Phoenix Mercury ownership group have escalated into the courtroom. Two minority investors, Kisco WC Sports II and Kent Circle Investments, filed a lawsuit in Delaware against controlling owner Mat Ishbia, alleging a lack of transparency, mismanagement, and conflicts of interest.

The case highlights a rift within the franchise’s ownership, where disagreements over valuation, access to financial records, and buyout negotiations are now being fought through legal channels.

Phoenix Suns/Mercury Minority owners challenge Mat Ishbia over transparency and valuation disputes

At the center of the lawsuit are investors Andrew Kohlberg of Kisco and Scott Seldin of Kent Circle, both holdovers from the Robert Sarver era. When Ishbia purchased the Suns and Mercury in 2023 for $4 billion, he offered to buy out all minority shareholders.

Fourteen of the sixteen accepted. Kohlberg and Seldin declined, keeping their stakes. Now, both claim Ishbia has blocked their access to basic financial documents and failed to provide clarity on investments, including the Mercury’s new practice facility.

The complaint accuses Ishbia of using “a leverage strategy to exert pressure on and dilute the Company’s minority owners” through a sudden capital call issued on June 2.

The plaintiffs argue the per-unit valuation presented during the call was “strikingly low and bears no relationship to the actual value of the company.” They point to rising franchise sales, such as the Boston Celtics’ $6.1 billion deal in April and the Los Angeles Lakers’ reported $10 billion valuation, as evidence their stakes are being unfairly undervalued.Their attorneys stressed the stakes of the dispute. “Transparency with minority owners is not optional, and our clients think it is critical to the success of the Suns.”

They are seeking court approval to review financial records, damages, and reimbursement of legal costs.

Mat Ishbia responds to the lawsuit by the minority owner

The Suns’ attorneys strongly deny the allegations. In a letter obtained by multiple outlets, team counsel David Marroso stated, “Your clients have no right to insist that ISH Suns acquire their interest at all, much less at the valuation and premium they are demanding.” The letter acknowledged the team’s value is “approaching $7 billion” but argued that does not obligate the franchise to buy out minority stakes.The team also accused Kohlberg and Seldin of attempting to pressure Ishbia into an inflated deal. “Kohlberg and Seldin have resorted to threatening baseless litigation and sensationalized press coverage as a means of intimidating and coercing ISH Suns into unprincipled and unjustified buyout negotiations,” the letter read. “That will not work. ISH Suns and the Company will not be bullied by these sharp and abusive tactics.

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This lawsuit is the sixth filed against the Suns organization since November 2023, adding to a growing list of legal and workplace disputes. Also Read: Luka Doncic gets heartfelt surprise from Jeanie Buss and Rob Pelinka ahead of his EuroBasket game