Two minority owners of the Phoenix Suns and Phoenix Mercury filed a lawsuit Monday (Nov. 24) against majority owner Mat Ishbia, alleging he mismanaged the franchise, and engaged in fraudulent transactions to benefit his mortgage company, United Wholesale Mortgage.
Scott Seldin and Andy Kohlberg, who remain from the previous ownership group under Robert Sarver, claim Ishbia "is using the Suns as his personal piggy bank," according to court documents obtained by ESPN.
The lawsuit alleges Ishbia extended a loan to the Suns at an interest rate far above market value, sold naming rights to the team's arena to United Wholesale Mortgage without disclosing details to minority partners, and leased the Phoenix Mercury's practice facility from himself at undisclosed rates.
The filing also claims Ishbia established a new entity that holds assets rightfully belonging to the Suns.
"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," the lawsuit states.
The attorney representing Seldin and Kohlberg said in a statement that Ishbia "has repeatedly abused his position as manager of the franchise to benefit himself—not the Suns."
A spokesperson for Ishbia denied the allegations, telling ESPN that "Kohlberg and Seldin want to drag the organization backward, and they openly admit in this filing that investing in the team and its fans 'makes no business sense.'"
This marks the second lawsuit filed by the minority owners against Ishbia in recent months. In August, ESPN reported that Seldin and Kohlberg sued Ishbia for allegedly refusing them access to internal documents.
Ishbia purchased a controlling stake in the Suns and Mercury in 2023 from Sarver, who faced allegations of racism and misogyny within the organization brought to light by an ESPN investigation. Since taking over, Ishbia made aggressive moves to build a championship contender, trading for Kevin Durant and Bradley Beal, though both players are no longer with the franchise.
At 11-7, the Suns are currently in sixth place in a crowded Western Conference.
