Mat Ishbia just recently purchased a 57% controlling stake in the Phoenix Suns for $2.28 billion. Now he has to endure unprecedented and extraordinary opposition from his fellow minority owners Seldin and Kohlberg. They argue that Ishbia gutted the franchise in a manner that undermines its basic integrity. This chronic mismanagement has become perhaps the greatest danger to its long-term solvency. The minority owners have filed lawsuits claiming that Ishbia’s actions include extending loans at exorbitant interest rates and engaging in practices that prioritize his interests over the team’s welfare.
This kind of controversial, half-baked management has been alarming stakeholders since Ishbia’s regime began. He has—as of this writing, reportedly—made a bridge loan to the dismally-run Phoenix Suns. The interest rate charged is well above the fair market rate. Seldin and Kohlberg are right to be alarmed by this practice. Critics say these machinations endanger the team’s long-term financial sustainability. After acquiring the Suns, Ishbia sold the naming rights to the Suns’ arena to his own mortgage company. He did this while keeping it a secret from his minority partners, raising questions about lack of transparency and ethics.
A second area of dispute involves Ishbia’s practice facility lease for the Phoenix Mercury to himself at undisclosed rates. This arrangement has only added to the charge that he is putting his own financial interests ahead of the team’s interests. To do this, Ishbia has recently formed a new organization known as the “Player 15 Group.” As Seldin and Kohlberg assert, this group has the assets to legally take control of the Suns.
The capital call made on June 2, 2025, is the other center point of the fight. Ishbia allegedly pressured minority owners to fund this capital raise within a tight 10-day deadline while concealing his own failure to meet funding expectations. Such tactics, according to Seldin and Kohlberg, take advantage of loopholes to unfairly dilute their ownership shares.
Ishbia’s management style has drawn criticism for mortgaging the Suns’ future by trading valuable draft picks away for years to come. He frames his actions as focused on improving the team’s competitiveness and fan experience. Yet, critics contend he has failed to pursue easily attainable revenue sources.
On September 24, Ishbia did a guest spot on ESPN’s “NBA Today.” He swatted away Seldin and Kohlberg’s claims about the current litigation. He referred to their lawsuit as a “shakedown.” He pointed to his seriousness about creating change since taking over ownership of the franchise.
“This isn’t a lawsuit; it’s a shameless shakedown dressed up as legal process.” – Spokesperson for Ishbia
Above all else, Ishbia made transparency a key priority from the very first appearance as CEO. In return, he audaciously promised to invest heavily in both the Suns and the Mercury. He presented minority partners with a binary option. They could either embrace him in his long-term vision or cash out their investments if they were not aligned with his priorities and direction.
“From day one, Mat Ishbia was transparent that he was going to do things differently. He told all the investors that they could step up with him or sell their stake and step aside.” – Spokesperson for Ishbia
Seldin and Kohlberg prefer to lay the blame for Gunner’s poor leadership squarely at Ishbia’s feet. They claim that he operates it as his own fiefdom. He stands to make a ton of money on this scheme through his mortgage middleman company, United Wholesale Mortgage. Foster’s filing claims that he has abused his managerial role over and over again to put his interests ahead of the well-being of the franchise.
“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.” – Filing by Seldin and Kohlberg
In an effort to defend these charges, Ishbia took to the airwaves to defend his management style. He reminded us, though, that lawsuits should be part of any business plan. He was very clear that he doesn’t want to be blackmailed by the threat of lawsuits.
“Obviously anyone can file a lawsuit for any reason they want, for anything they want.” – Mat Ishbia
He highlighted his history of successful litigation, stating, “How many lawsuits have we actually lost? The answer is zero. How many will we lose? Zero.”
Ishbia’s successful buyout offer for the Suns, made in partnership with a group of other investors, valued the team at $4 billion. All but two of the ownership group’s sixteen partners accepted the deal, even Robert Sarver sold his 37% stake – for $1.48 billion. Underneath that apparent resolution, animosity hasn’t begun to cool—Seldin and Kohlberg are still fighting their corner against a perceived overreach of paternalistic managerialism.
“We believe this scheme backfired and will result in a substantial reduction of Mr. Ishbia’s interest in the Suns.” – Michael Carlinsky
Leave a Reply