The remaining individuals associated with the Phoenix Suns’ prior leadership under Robert Sarver are initiating legal proceedings against the team, asserting that the current proprietor, Mat Ishbia, has denied them entry to confidential documents, as indicated in legal papers acquired by ESPN.
The legal action, formally submitted on August 21, was undertaken by legal representatives acting on behalf of firms connected to Andy Kohlberg and Scott Seldin, both minority owners of the Suns. Kohlberg and Seldin stand as the exclusive minority stakeholders from Sarver’s consortium who chose not to liquidate their equities in the Suns when Ishbia finalized the acquisition in 2023.
“Our clients have initiated legal proceedings to secure access to records to which they are legitimately entitled as minority owners of the Suns,” stated Michael Carlinsky and Michael Barlow from Quinn Emanuel, serving as legal counsel for the Suns’ minority owners, in an official statement released on Wednesday. “They harbor concerns regarding the manager’s conduct towards minority stakeholders and seek enhanced insights into specific expenditures and capital procurement endeavors undertaken by the manager. Openness towards minority owners is not merely a suggestion but a mandatory requirement, and our clients firmly believe it is indispensable for the prosperity of the Suns.”
Within the formal grievance, the legal representatives articulate that Kohlberg commenced negotiations for a buyout agreement with an advisor to Ishbia in September of 2024. The discussions persisted into 2025, culminating in a demand for a conclusive response from Ishbia by June 1. The legal team contends that Ishbia subsequently implemented a capital infusion initiative on June 2, intending to “apply pressure and erode” the ownership percentages held by the team’s minority stakeholders.
Furthermore, the legal representatives assert that Ishbia “may have engaged in undisclosed private arrangements with other members affiliated with the [Suns], encompassing supplementary agreements pertaining to the capital infusion.” They affirm the inability to procure data concerning the Suns’ financial outlays and additionally voiced apprehension regarding the financial backing for the Mercury’s $100 million training complex, inaugurated by the team in 2024.
The legal representatives assert that Ishbia opted against divulging any particulars concerning the funding mechanisms of the complex. He acknowledged that the team “adhered to its obligations as stipulated under the LLC Agreement.”
Legal representatives acting for the Suns and Ishbia dispatched a correspondence to the legal representatives of Kohlberg and Seldin, which was also reviewed by ESPN. In the aforementioned correspondence, the Suns articulate that Kohlberg and Seldin stipulated that the Suns repurchase their ownership stake for $825 million, a figure that would evaluate the Suns at approximately $6 billion. This valuation signifies a 60% escalation from the assessed worth during Ishbia’s acquisition of his controlling interest in 2023. The Suns communicated that they bear no mandate to execute the buyout.
“Let there be no ambiguity, [Ishbia] harbors no intention to curtail or diminish its investments in the organization and its constituent teams,” the letter underscores. “Conversely, [Ishbia] shall persist in undertaking all requisite measures to strategically position the Suns and Mercury to secure championships, foster a constructive team ethos, engender a lasting beneficial influence on the broader Phoenix populace, and elevate the overall fan encounter. … Should your clients not align with these cardinal objectives, it is conceivable that they should endeavor to vend in conformity with the stipulations enshrined in the parties’ accord.”
This legal proceeding denotes the sixth instance of litigation directed against the Suns’ structure since November 2024. The antecedent quintet of cases, instigated by incumbent or former personnel, encompass accusations pertaining to discrimination, retribution, maltreatment, and wrongful discharge.
