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Baxter Holmes
A pair of Phoenix Suns minority owners who were holdovers from the previous regime under former owner Robert Sarver are suing the team, alleging that current Suns owner Mat Ishbia has refused access to internal records, according to a copy of the lawsuit obtained by ESPN.
The lawsuit was filed in Delaware on Aug. 21 under seal, and a redacted version was made available Wednesday. The attorneys who filed it represent Kisco WC Sports II and Kent Circle Investments. Andy Kohlberg is the founder, president and CEO of Kisco Senior Living, and Scott Seldin is the president of Kent Circle Partners. Both men were minority owners under Sarver, who sold the Suns and Mercury in 2023 in the wake of an NBA investigation into Sarver’s conduct and the team’s workplace culture.
Ishbia bought a 57% controlling stake for $2.28 billion, as ESPN reported then, with Sarver selling his 37% stake for $1.48 billion.
At the time of the 2023 sale, 14 of the 16 partners in the Suns’ ownership group accepted Ishbia’s buyout offer at a $4 billion valuation. Kohlberg and Seldin were the only two who did not sell.
“Our clients sued to obtain records to which they are entitled as minority owners of the Suns,” Michael Carlinsky and Michael Barlow of Quinn Emanuel, who are representing the minority owners, wrote in a statement Wednesday. “They are concerned by the manager’s approach towards minority owners, and want more information about certain spending and capital raises in which the manager has engaged. Transparency with minority owners is not optional, and our clients think it is critical to the success of the Suns.”
The Suns declined to comment on the lawsuit, the sixth against the organization since November 2024. The other five were by current or former employees. Some of their allegations include discrimination, retaliation, harassment and wrongful termination.
In the complaint, the attorneys representing Seldin and Kohlberg say that in September 2024, Kohlberg began negotiating a buyout with an adviser to Ishbia. Seldin, meanwhile, didn’t seek a buyout. Kohlberg’s talks continued through 2025, with an ask for a final response from Ishbia by June 1. At that point, the attorneys say Ishbia held a capital call the next day, June 2, to “to exert pressure on and dilute” the ownership shares held by the Suns’ minority owners.
In the complaint, the attorneys representing Seldin and Kohlberg also say that they learned that Ishbia “may have entered into undisclosed side deals with other members of the [Suns], including side deals, relating to the capital call.” They say they have not been able to obtain information about the team’s expenditures, and they raised issue with the funding of the Mercury’s $100 million practice facility, which the team unveiled in July 2024.
They say that Ishbia refused to provide any information about how the facility was funded except to say that the team “complied with its duties under the LLC Agreement.”
On Tuesday, attorneys representing the Suns and Ishbia sent a letter, which was obtained by ESPN, to the attorneys representing Kohlberg and Seldin.
In the letter, the Suns say that Kohlberg and Seldin demanded that the Suns buy their ownership share for $825 million, a figure that would place the team’s value at about $6 billion — a 60% increase from the value when Ishbia bought his controlling interest in 2023. The Suns say they have no obligation to buy them out.
“Make no mistake, [Ishbia] does not intend to reduce or slow its investments in the company and its teams,” the letter states. “To the contrary, [Ishbia] will continue doing whatever it takes to position the Suns and Mercury to win championships, ensure a positive team culture, create a lasting impact on the greater Phoenix community, and improve the fan experience. [Ishbia] is not afraid to exceed the luxury tax line and make other commitments to ensure the Suns and Mercury remain first-in-class operations.
“If your clients do not share these same priorities, then perhaps they should try to sell consistent with the terms of the parties’ agreement. Instead, Kohlberg and Seldin have resorted to threatening baseless litigation and sensationalized press coverage as a means of intimidating and coercing [Ishbia] into unprincipled and unjustified buyout negotiations. That will not work. [Ishbia] and the [Suns] will not be bullied by these sharp and abusive tactics.”