UWM’s Mat Ishbia, Phoenix Suns sued by minority owners over records dispute

Minority investors in the NBA‘s Phoenix Suns have filed a lawsuit against the team and its majority owner, Mat Ishbia. They allege being denied access to internal records, including those tied to the funding of a practice facility.

The lawsuit, filed on Aug. 21 in the Delaware Court of Chancery, comes from Kisco WC Sports II, owned by Andy Kohlberg, and Kent Circle Investments, owned by Scott Seldin. Each were minority owners under Robert Sarver, who in 2023 sold the Suns and Phoenix Mercury basketball teams to Ishbia, the president and CEO of United Wholesale Mortgage (UWM).

The transaction valued the team at $4 billion. It was first disclosed in December 2022 and approved by the NBA in February 2023, marking the teams’ first ownership change in nearly two decades.

According to reporting at ESPN, Ishbia acquired a 57% stake for $2.28 billion, including Sarver’s 37% stake for $1.48 billion and the shares of 14 of the 16 existing partners. Kohlberg and Seldin were the two who retained their stakes.

The complaint against Suns Legacy Holdings alleges “refusal to permit the inspection of books and records to which the members are entitled.” The minority investors claim documents already produced suggest Ishbia “entered into multiple undisclosed side deals with other investor members” and undertook “significant, related-party transactions with entities controlled by the manager.”

The plaintiffs also cite a lack of transparency over the funding of a $100 million practice facility, unveiled in July 2024. The Suns declined to comment. 

“Our clients sued to obtain records to which they are entitled as minority owners of the Suns,” attorneys Michael Carlinsky and Michael Barlow wrote to ESPN. “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.” 

According to the suit, in September 2024, Kisco began negotiating a buyout due to dissatisfaction with the team’s management, requesting a final response by June 1, 2025.

Instead of replying, the manager allegedly issued a capital call the following day, requiring members to provide their pro rata share. The plaintiffs argue the valuation tied to the call was “low and bears no relationship to the actual value of the company.” 

Attorneys for the Suns and Ishbia, in a letter obtained by ESPN, countered that Kohlberg and Seldin themselves valued the company at $6 billion, citing their $825 million offer to sell their stake.

“Make no mistake, [Ishbia] does not intend to reduce or slow its investments in the company and its teams,” the letter states.

“If your clients do not share these same priorities, then perhaps they should try to sell consistent with the terms of the parties’ agreement. Instead, Kohlberg and Seldin have resorted to threatening baseless litigation and sensationalized press coverage as a means of intimidating and coercing [Ishbia] into unprincipled and unjustified buyout negotiations. That will not work. [Ishbia] and the [Suns] will not be bullied by these sharp and abusive tactics.”

The minority owners are seeking records to investigate the company’s financial condition, possible breaches of agreement and conflicts of interest.

In June, reports surfaced that Mat Ishbia’s brother, Justin, had reached an agreement to purchase the Chicago White Sox. The current owner, 89-year-old Jerry Reinsdorf, will have the option to sell his controlling stake between 2029 and 2033, with Justin, Mat and their father Jeff becoming significant investors in the Major League Baseball team at that time.