A recent lawsuit filed in Delaware State Court, made public on Monday and obtained by ESPN, reveals serious allegations against Mat Ishbia, the governor of the Phoenix Suns. Minority owners Scott Seldin and Andy Kohlberg, who maintained their shares from the previous ownership under Robert Sarver, accuse Ishbia of using the franchise as "his personal piggy bank" and driving the once profitable team into financial loss through alleged misconduct and mismanagement.

The legal battle is an escalation of an ongoing dispute. Seldin and Kohlberg initially sued the team in August 2024, claiming Ishbia denied them access to internal records and orchestrated a capital call on June 2, 2025, specifically "to exert pressure on and dilute" their ownership shares. Ishbia responded last month with a countersuit, publicly dismissing their claims as a "shakedown."

The latest filing elaborates on the minority owners' claims, stating that "Ishbia does not own the Suns to make money for the company but he does operate it as a personal fiefdom for his own personal gain and for the benefit of his other businesses, including his mortgage company United Wholesale Mortgage." They allege a "lengthy list of conflicted transactions," including extending a loan to the Suns at an interest rate significantly above market value, selling the naming rights of the Suns' arena to his mortgage company without proper disclosure to minority partners, and leasing the Phoenix Mercury's practice facility from himself at undisclosed rates. Furthermore, Seldin and Kohlberg point to the establishment of a new entity, the "Player 15 Group," which they believe holds assets that rightfully belong to the Suns.

Regarding the June 2, 2025 capital call, the minority owners assert that Ishbia attempted to punitively dilute their shares if they failed to fund a capital raise within a 10-day deadline, while simultaneously concealing his own failure to meet the same deadline. According to the filing, "Ishbia blundered into the very trap he set for the minority owners and faced a devastating dilution of his ownership interest if his failure was discovered." Michael Carlinsky, an attorney for Seldin and Kohlberg, expressed confidence that this "scheme backfired and will result in a substantial reduction of Mr. Ishbia's interest in the Suns," emphasizing Ishbia's alleged abuse of his position for personal gain rather than the team's benefit.

Seldin and Kohlberg also claim that both the Suns and Mercury franchises have been operating at a net loss since Ishbia's acquisition in 2023, though exact figures remain redacted. They allege Ishbia has "spent wildly on player and coach contracts, incurred massive tax penalties from the NBA, and built himself an expensive clubhouse... with his co-owners footing their share of the bill." Additionally, the filing accuses Ishbia of "mortgaging the Suns' future by trading away valuable draft picks for years to come and has knowingly foregone significant revenue opportunities," ostensibly in pursuit of winning and an enhanced fan experience.

Ishbia, through a spokesperson, has staunchly denied all allegations, branding the lawsuit as a "shameless shakedown dressed up as legal process." His spokesperson clarified that from the outset, Ishbia was transparent about his intent to manage the team differently, investing significantly in both the Suns and Mercury. He reportedly gave all investors the option to either contribute financially or sell their stakes. The spokesperson asserted that Kohlberg and Seldin "stayed in and now they're trying to freeload off the value Mat created," accusing them of advocating neglect by implying that investing in the team "makes no business sense." Ishbia reiterated his policy of not settling such lawsuits, stating, "We don't settle with someone. You want to say, give me $30,000 and I won't file a lawsuit? I say file a lawsuit. We didn't do anything wrong."

Mat Ishbia acquired a 57% controlling stake in the Suns for $2.28 billion in 2023, with Robert Sarver selling his 37% stake for $1.48 billion. At the time of the sale, 14 out of 16 partners accepted Ishbia's buyout offer based on a $4 billion valuation; only Kohlberg and Seldin chose not to sell their shares. The August lawsuit filed by Seldin and Kohlberg marks the sixth lawsuit against the Suns since November 2024, with the other five brought by current or former employees citing issues such as discrimination, retaliation, harassment, and wrongful termination.