A heated battle is unfolding in the world of professional basketball, with a group of minority owners of the Phoenix Suns taking aim at majority owner Mat Ishbia. The latest court filing, obtained by ESPN, reveals a complex financial dispute that could potentially shake up the ownership structure of the team.
The Battle for Control
This legal battle can be traced back to September 2024, when tensions began to rise between Ishbia and two minority owners, Scott Seldin and Andy Kohlberg. Kohlberg initiated negotiations for a buyout, while Seldin opted to stay put. As the year progressed, the situation escalated.
A Controversial Capital Call
On June 2, 2025, Ishbia made a bold move by initiating a $250 million capital call, essentially asking investors to put their money where their commitments were. He set a tight deadline of June 12, threatening minority owners with a reduction in their ownership if they didn't fund the call. Seldin and Kohlberg, under protest, paid their share, but the controversy didn't end there.
The filing reveals that Ishbia then set up another capital call on July 8, with yet another 10-day deadline. Again, Seldin and Kohlberg paid their portion, but they claim that Ishbia failed to meet his own funding deadlines.
Unraveling the Financial Web
The minority owners sought internal financial records and filed a lawsuit in August, alleging that Ishbia used a "debt-to-equity conversion" to fund his contribution, which they argue was not fully disclosed. They claim that Ishbia's actions resulted in a significant dilution of their ownership interests, despite owning only a fraction of the company.
Michael Carlinsky, an attorney representing Seldin and Kohlberg, stated, "The updated filing shows that Ishbia's capital call was a ploy to increase his stake unfairly. The valuation of $10 million per unit is disconnected from the franchise's true worth, which Ishbia himself estimated at $7 billion or more."
The Potential Power Shift
If the judge rules in favor of the minority owners, Ishbia's majority stake could be at risk. Per the team's operating agreement, Seldin and Kohlberg could have the opportunity to fund Ishbia's unfunded share, potentially giving them majority control of the Suns and the Phoenix Mercury. This would result in a significant shift in power, with Seldin and Kohlberg holding approximately 60% of the team.
Ishbia's Response
Ishbia's spokesman dismissed the claims as "ridiculous," stating that Seldin and Kohlberg are "resorting to threats and publicity stunts" to force a buyout. He accused them of being unwilling to invest in the team and seeking to make more money.
A Complex Legacy
Seldin and Kohlberg are holdovers from the previous ownership group led by Robert Sarver, who sold his stake to Ishbia in 2023. At the time, most partners accepted Ishbia's buyout offer, but Kohlberg and Seldin held firm. The situation has since escalated, with Ishbia countersuing the minority owners, alleging they demanded an "exorbitant premium" for their shares.
The legal battles surrounding the Suns continue, with this latest lawsuit being the seventh since November 2024. Other lawsuits have been filed by current and former employees, alleging discrimination, retaliation, and wrongful termination.
As the drama unfolds, the future of the Phoenix Suns hangs in the balance, and the outcome could have a significant impact on the NBA landscape.
