Mat Ishbia became the majority owner of the Phoenix Suns in 2023. He purchased the team from Robert Sarver as the former owner faced allegations of racism and misogyny within the organization brought to light by an investigation from ESPN’s Baxter Holmes.
The Suns made a run to the NBA Finals in 2021 before Ishbia took over. He helped try to lift the franchise over the hump and toward the ultimate prize of a title with big swings in trades for Kevin Durant and Bradley Beal, who are both no longer a part of Phoenix’s roster. In August, ESPN reported that a pair of Suns minority owners sued Ishbia due to allegations that he refused them access to internal documents.
Now, the minority owners have claimed that Ishbia is using the franchise as “his personal piggy bank” according to a new lawsuit obtained by ESPN. The minority owners, Scott Seldin and Andy Kohlberg, remain from the previous ownership group under Sarver.
"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 latest filing stated, via ESPN. "The reality is that Ishbia is using the Suns as his personal piggy bank, including through a lengthy list of conflicted transactions—only some of which the minority owners are aware of."
The latest filing alleges Ishbia extended a loan to the Suns at an interest rate far above market, sold the naming rights to the Suns’ arena to his mortgage company without disclosing details to the minority partners and that he leased the Phoenix Mercury’s practice facility from himself at undisclosed rates and that he established a new entity that Seldin and Kohlberg allege holds assets that rightfully belong to the Suns.
“[Ishbia] has repeatedly abused his position as manager of the franchise to benefit himself—not the Suns,” the attorney representing Seldin and Kohlberg said in a statement to ESPN. “We look forward to moving forward on an expedited basis and presenting our case to the court."
A spokesperson for Ishbia provided a statement to ESPN that denied the allegations, claiming the lawsuit aims to bring the organization backward.
“Kohlberg and Seldin want to drag the organization backward, and they openly admit in this filing that investing in the team and its fans 'makes no business sense.' They are advocating neglect. They are free to sell their shares in the open market and if they don't, they should be prepared to lose this lawsuit and participate in Mat's continued investments in the teams and community."
What was the previous lawsuit by the minority owners against Suns owner Mat Ishbia?
In August, Seldin and Kohlberg alleged Ishbia did not give them access to internal documents. Specifically, the two claimed they were not able to get information on the franchise's expenditures and that Ishbia refused give any info on funding for a new $100 million practice facility built for the Mercury.
Kohlberg and Seldin are the only two minority owners who didn't accept a buyout when Sarver sold the team to Ishbia. Per ESPN, Ishbia countersued the two men last month and called their lawsuit a "shakedown" in a statement through a spokesperson.
Phoenix is out to an 11-6 start to the season despite Durant’s departure.