Credit: Mark J. Rebilas-Imagn Images
PHOENIX – The Phoenix Suns are being sued by minority owners Andy Kohlberg, CEO of Kisco Senior Living, and Scott Seldin, President of Kent Circle Partners. The duo filed a lawsuit against the team and current owner Mat Ishbia for refusing to give access to internal records, according to a copy of the lawsuit attained by ESPN’s Baxter Holmes.
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The two minority owners are the only former Suns minority owners/partners to remain after the Ishbia purchase from former owner Robert Sarver. Ishbia purchased 14 of the 16 previous ownership group shares for $2.28 Billion to own 57% of the franchise.
Feb 27, 2025; Phoenix, Arizona, USA; Phoenix Suns owner Mat Ishbia watches a game against the New Orleans Pelicans in the second quarter at Footprint Center. Mandatory Credit: Brett Davis-Imagn Images
Kohlberg and Seldin’s representation on lawsuit against Suns:
“Our clients sued to obtain records to which they are entitled as minority owners of the Suns,” Michael Carlinsky and Michael Barlow of Quinn Quinn Emanuel, who are representing the minority owners. “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.”
Oct 2, 2023; Phoenix, AZ, USA; Phoenix Suns owner Mat Ishbia poses for a portrait during media day at Footprint Center. Mandatory Credit: Mark J. Rebilas-Imagn Images
Kohlberg and Seldin are seeking $825 million for their share of the team, which would bring the team’s valuation near $6 billion. The value assessment is a massive increase from when Ishbia bought the team back in 2023. The Suns and Ishbia’s attorneys sent a letter on Tuesday that ESPN was able to attained that addressed the claims by the minority owners.
Suns and Ishbia’s attorney responds:
“Make no mistake, [Ishbia] does not intend to reduce or slow its investments in the company and its teams. 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.”
Suns and Mercury owner Mat Ishbia speaks to the press during the grand opening of the Mercury’s new practice facility on Thursday, July 18, 2024. © Patrick Breen/The Republic / USA TODAY NETWORK
The lawsuit was filed in Delaware on Aug. 21st but a redacted version became public on Wednesday. The document contains a complaint from Kohlberg and Seldin’s attorneys that Ishbia “may have entered into undisclosed side deals with other members of the [Suns],” which became relevant to them due to a capital call when Kohlberg was seeking a buyout from the team, first seeking one in September 2024.
The speculation or rumor of the side deal was sparked with how the team was funding the Phoenix Mercury’s $100 million practice facility. Kohlberg and Seldin’s team claim that Ishbia refused to give information on the venture, only stating that “[It] complied with its duties under the LLC Agreement.” The validity behind the claim of Ishbia’s “side deals” are very much left in the air for now.
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Reporter Tanner Tortorella covers general assignment for Burn City Sports. You can follow him on his X account, @TannerTSports
