Minority owners of the Phoenix Suns, Scott Seldin and Andy Kohlberg, have launched a new legal challenge against majority owner Mat Ishbia. This lawsuit, filed on November 24, 2024, in Delaware State Court, raises serious questions about Ishbia’s financial practices and could jeopardize his control of the team.
Key Details of the Legal Challenge
- Filing Date: November 24, 2024
- Location: Delaware State Court
- Plaintiffs: Scott Seldin and Andy Kohlberg
- Defendant: Mat Ishbia
- Ishbia’s Ownership: Acquired controlling interest in 2023
- Allegations: Financial misconduct, including claims of using the team as a “personal piggy bank.”
Background of Ownership Dispute
Negotiations between Kohlberg and Ishbia over a buyout began in September 2024. Seldin did not pursue a buyout. By June 2025, Ishbia initiated a $250 million capital call, which included issuing new ownership units at $10 million each. This valuation reportedly did not reflect the Suns’ prior worth of $198 million per unit, which Ishbia paid to acquire additional shares from minority owners.
According to the lawsuit, Seldin and Kohlberg complied with the capital call under protest. Despite this, they allege that Ishbia failed to meet his financial obligations and initiated another capital call on July 8, 2025, further complicating their situation.
Legal Insights and Claims
As outlined in the legal filing, the minority owners assert that Ishbia’s actions could dilute his ownership stake significantly—from 83.2% to around 32.7%—if the court rules in their favor. They argue that their rights to purchase shares Ishbia did not fund should be honored according to the team’s operating agreement.
Response from Ishbia’s Camp
Ishbia’s representatives have rejected the allegations as baseless. They contend that the claims are part of a strategy by Seldin and Kohlberg to pressure him into purchasing their stakes at inflated values. Ishbia purchased a 57% controlling stake in the Suns for $2.28 billion, while he claims the minority owners are insisting on a buyout price of $825 million, significantly raising the franchise’s value.
Minority Owners’ Historical Context
Seldin and Kohlberg were part of the previous ownership group led by Robert Sarver. When Ishbia bought the team, 14 out of 16 owners accepted his buyout offer, valuing the team at $4 billion. Despite this, Seldin and Kohlberg opted to retain their shares, a decision that has now led to their ongoing legal conflicts.
Conclusion and Implications
The lawsuit marks the seventh legal action involving the Suns since late 2024, reflecting ongoing tensions within the organization. As the case unfolds, the outcomes may significantly reshape the ownership landscape of the Phoenix Suns, impacting both Ishbia’s majority stake and the minority owners’ positions.
