Mat Ishbia in Talks to Buy Suns Stakes From Minority Partners Who Sued Him

Heated litigation between Suns’ majority owner Mat Ishbia and two minority partners is on pause as the parties resume negotiations for Ishbia to buy out their stakes.

The dispute dates back to August, when Suns’ minority investors Kisco WC Sports II and Kent Circle Investments filed a “books and records” suit against Ishbia and the team’s holding company over allegations of mismanagement, conflicts of interest, and a lack of required transparency. Ishbia countersued in October (the original suit from the minority LPs was dropped because they succeeded in obtaining the books and records they sought).

The conflict escalated in November, with the minority owners claiming Ishbia committed fraud by using the team as his “personal piggy bank” and the Suns calling the ordeal a “shameless shakedown dressed up as legal process.”

Now, however, the two sides are looking to end the legal fracas and come to terms on a deal. The lawsuit in Delaware state court will be put on hold as the parties enter private mediation, according to a filing dated March 14. Following the “confidential binding mediation process,” they intend to dismiss the Delaware lawsuit, according to the filing. The new filing was first reported by The Athletic.

The meditation entails the parties reopening talks regarding Ishbia buying out their stakes, discussions which had begun prior to the lawsuit initially launched over the summer, sources familiar with the matter tell Front Office Sports. If a deal is reached, Ishbia will own more than 96% of the team, one source tells FOS.

The decision to enter mediation was made independently by the parties, without any intervention by the NBA, sources tell FOS.

Ishbia bought a reported 57% stake in the NBA’s Suns and WNBA’s Mercury at a $4 billion valuation in 2023. At the time, Ishbia gave each minority investor the choice to sell or stay in and invest in the team alongside him. Kisco and Kent Circle represent the only two remaining LPs from before Ishbia purchased the team from Robert Sarver—who was pushed out amid controversy over his use of racially insensitive language and unequal treatment of female employees.

Kisco is led by Andrew Kohlberg, a former professional tennis player who now runs a senior living business and has been a limited partner in the Suns since 2004, while Kent Circle is led by Scott Seldin, who has an Arizona-based real estate business. 

The Suns struggled on the court during the first two years of Ishbia’s ownership, despite the acquisitions of All-Stars Kevin Durant and Bradley Beal, both of whom have since been traded. This season, Phoenix has exceeded expectations; ahead of Monday night’s matchup against the Celtics, the Suns were 39-28, good for seventh place in the Western Conference, which would put them in the play-in.

As of October, the Suns had an estimated value of more than $5.4 billion, according to Forbes.