A duo of minority stakeholders in the Phoenix Suns, who were part of the earlier management under ex-owner Robert Sarver, are taking legal action against the franchise. They claim that the current owner, Mat Ishbia, has denied them access to internal documents, as revealed in a lawsuit obtained by ESPN.
The legal action was initiated in Delaware on August 21 and was sealed, with a redacted version released on Wednesday. The lawyers involved represent Kisco WC Sports II and Kent Circle Investments. Andy Kohlberg serves as the founder, president, and CEO of Kisco Senior Living, while Scott Seldin holds the position of president of Kent Circle Partners. Both individuals were minority shareholders during Sarver’s tenure, who transferred ownership of the Suns and the Mercury in 2023 after an NBA probe into Sarver’s behavior and the culture within the team.
According to ESPN, Ishbia acquired a 57% controlling interest for $2.28 billion, with Sarver divesting his 37% share for $1.48 billion. At the moment of the 2023 sale, 14 of the 16 owners in the Suns’ ownership structure accepted Ishbia’s proposal at a $4 billion valuation. Only Kohlberg and Seldin opted to retain their shares.
“Our clients have filed this lawsuit to secure access to records they rightfully deserve as minority stakeholders of the Suns,” stated Michael Carlinsky and Michael Barlow from Quinn Emanuel, representing the minority owners, in an announcement on Wednesday. “They are alarmed by the management’s relationship with minority shareholders and are seeking clarity regarding specific expenditures and capital raises the management has undertaken. Transparency with minority owners is essential, and our clients believe it is vital for the Suns’ success.”
The Suns chose not to provide remarks regarding the lawsuit, which marks the sixth legal action against the franchise since November 2024. The preceding five cases came from current or former employees, alleging claims of discrimination, retaliation, harassment, and wrongful dismissal.
In the legal filing, the attorneys for Seldin and Kohlberg assert that in September 2024, Kohlberg began talks for a buyout with an advisor to Ishbia. Meanwhile, Seldin did not pursue a buyout. Kohlberg’s negotiations persisted into 2025, with a request for a final response from Ishbia by June 1. According to the attorneys, Ishbia conducted a capital call the following day, June 2, to “pressure and dilute” the ownership stakes held by the minority shareholders of the Suns.
Additionally, the legal representatives for Seldin and Kohlberg claim they discovered that Ishbia “may have engaged in covert side agreements with other members of the [Suns], including those related to the capital call.” They state that they have been unable to access details regarding the team’s financial outlays, raising concerns over the financing of the Mercury’s $100 million training facility, which was announced in July 2024.
They contend that Ishbia declined to disclose any specifics about the facility’s funding, other than stating that the team “fulfilled its obligations under the LLC Agreement.”
On Tuesday, legal representatives for the Suns and Ishbia sent a correspondence, which ESPN was able to acquire, to the lawyers for Kohlberg and Seldin.
In this correspondence, the Suns assert that Kohlberg and Seldin insisted on selling their stake in the team for $825 million, a valuation that would bring the team’s worth to around $6 billion—an increase of 60% from when Ishbia secured his controlling stake in 2023. The Suns assert they are under no obligation to purchase their shares.
“Let it be clear, [Ishbia] has no plans to cut back or diminish investments in the organization and its teams,” the correspondence details. “In fact, [Ishbia] will persist in taking every necessary step to set up the Suns and Mercury for championship success, foster a strong team culture, leave a significant impression on the greater Phoenix area, and enhance the experience for fans. [Ishbia] is committed to surpassing the luxury tax threshold and making other investments to guarantee that the Suns and Mercury remain leading franchises.
“If your clients do not endorse these same objectives, they might consider selling in alignment with the stipulations of the agreement between the parties. Instead, Kohlberg and Seldin have turned to unfounded threats of lawsuits and exaggerated media attention as a tactic to intimidate and pressure [Ishbia] into dubious and unwarranted buyout discussions. This approach will not succeed. [Ishbia] and the [Suns] refuse to be cowed by such underhanded and aggressive maneuvers.”
