Minority Owners of Phoenix Suns File Lawsuit Against Mat Ishbia, Alleging Mismanagement and Lack of Transparency

PHOENIX, AZ — August 29, 2025 — Two minority owners of the Phoenix Suns, Kisco WC Sports II, LLC, and Kent Circle Investments, LLC, have filed a lawsuit against the team’s majority owner, Mat Ishbia, and Suns Capital Group, accusing them of mismanagement, lack of transparency, and potential breaches of the partnership agreement. The legal action, filed on August 21, 2025, in Delaware Chancery Court, seeks access to financial records to investigate the team’s business operations and financial status, according to a redacted copy of the lawsuit obtained by The Associated Press.

The plaintiffs, represented by attorneys Michael Carlinsky and Michael Barlow of Quinn Emanuel Urquhart & Sullivan, allege that Ishbia and Suns Capital Group have withheld critical information about the management of the Suns and the Phoenix Mercury, both of which Ishbia acquired in February 2023 for $4 billion from former owner Robert Sarver. The lawsuit claims that this lack of transparency has left minority owners unable to assess the value of their stakes or understand key financial decisions, including a $100 million practice facility for the Mercury and a June 2, 2025, capital call that the plaintiffs describe as “strikingly low” and potentially dilutive to their ownership shares.

“Our clients sued to obtain records to which they are entitled as minority owners of the Suns,” Carlinsky said in a statement. “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.”

The lawsuit further suggests that Ishbia may have entered into undisclosed side deals with other investors, raising concerns about conflicts of interest and potential violations of the limited liability company (LLC) agreement. Kisco WC Sports II, led by Andy Kohlberg, and Kent Circle Investments, led by Scott Seldin, were the only two of 16 minority owners who chose not to sell their stakes when Ishbia purchased the franchises, a decision they now claim has left them sidelined in the team’s decision-making processes.

A letter from Suns Legacy Holdings, the company operating the Suns and Mercury, to the plaintiffs’ attorneys, dated August 26, 2025, defends Ishbia’s leadership and investment strategy. The letter, obtained by The Athletic, notes that Kohlberg and Seldin were aware of Ishbia’s plans to invest heavily in the franchises and argues that their decision to remain limited partners should be viewed positively given the team’s valuation, which is reportedly approaching $7 billion. “Your clients have no right to insist that ISH Suns acquire their interest at all, much less at the valuation and premium they are demanding,” the letter states, dismissing the lawsuit as an attempt to pressure Ishbia into a buyout.

The legal action marks the sixth lawsuit against the Suns organization since November 2024, signaling ongoing turmoil under Ishbia’s ownership. Previous suits include allegations of discrimination, harassment, and retaliation filed by former employees, including former security manager Gene Traylor, former Mercury interim coach Nikki Blue, and former diversity, equity, and inclusion manager Andrea Trischan. The Suns have denied these allegations, calling them “categorically false.”Ishbia’s tenure has also been marked by on-court challenges. After acquiring the Suns as a playoff contender following their 2021 NBA Finals appearance, the team has struggled, posting a 36-46 record last season and missing the playoffs. High-profile trades for Kevin Durant and Bradley Beal failed to deliver, with both players departing this offseason. The Suns, now led by their fourth head coach in four years, Jordan Ott, face mounting pressure to rebuild around star Devin Booker.

For Suns fans, the lawsuit is unlikely to impact on-court performance directly, but it underscores broader concerns about the franchise’s direction. As one outlet noted, “The Phoenix Suns continue to be a bit of a mess,” with off-court controversies compounding the team’s struggles. The outcome of this legal battle could shape the future of the Suns’ ownership structure and Ishbia’s leadership as he navigates a critical juncture for the franchise.

The Suns and Ishbia have declined to comment directly on the lawsuit, leaving the dispute to unfold in court as minority owners push for greater transparency and accountability.