Two of the Phoenix Suns‘ limited partners are demanding that Mat Ishbia’s “ISH Suns” LLC, the controlling stakeholder of Suns Legacy Holdings LLC, buys them out as the franchise’s valuation approaches an estimated $7 billion.
In a letter obtained by PHNX Sports, the attorneys for ISH Suns LLC rebuked demands from Kisco WC Sports II, LLC and Kent Circle Investments, LLC for ISH Suns to purchase their limited (non-controlling) interest in the team for $825 million, based on the enterprise being valued in excess of $6 billion — a 60 percent increase from the franchise’s value when Ishbia’s LLC first acquired a controlling interest.
UPDATE, AUG. 27, 2025: A bookkeeping suit filed on Aug. 21 to look into the Suns’ records was made public Wednesday morning. The redacted verified complaint asserts that Suns Capital Group and the controlling member, Mat Ishbia, have engaged in a pattern of conduct that has deprived other members of basic information about the company and its management.
The attorneys for Kisco WC Sports II and Kent Circle Investments could not be reached for comment after multiple attempts via email and phone, but Michael Carlinsky, lead attorney for the plaintiffs, issued a statement Wednesday: “Our clients sued to obtain records to which they are entitled as minority owners of the Suns. 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.”
Mat Ishbia, Suns reject buyout demands
Mat Ishbia originally bought a majority stake in the Suns and Mercury for $4 billion in 2023, which was the highest sale price for an NBA franchise at the time. The Suns’ letter alleges that valuation is now approaching $7 billion as a direct result of ISH Suns’ “massive investments in the organization” in the form of real estate, local media rights, stadium upgrades, fan experiences and talent for both teams, as well as the NBA’s newest media rights deal, the continued growth of the WNBA, and the recent sale prices of other NBA franchises like the Los Angeles Lakers and Boston Celtics.
Back in 2023, Ishbia gave the team’s 16 limited partners the chance to sell their interests at market value, using the same franchise valuation his LLC used to acquire the controlling share. Fourteen of those 16 partners accepted that initial buyout offer, while Kisco WC Sports II and Kent Circle Investments — and their respective principals, Andrew Kohlberg and Scott Seldin — were the lone holdouts.
In the letter, ISH Suns made it clear they do not object to Kisco WC Sports II or Kent Circle Investments marketing their interests and procuring offers from another buyer — subject to the “rights and obligations set forth in the parties’ agreement and applicable league rules” — and would support any buyer interested in partnering with the company to help make the Suns and Mercury the premiere franchises in their respective leagues.
But the attorneys insist Kohlberg and Seldin have no right to demand that Ishbia’s LLC is the one to buy them out, believing the timing stems from the company’s current market value.
The letter also mentions that Ishbia’s LLC has no intention of reducing its investments in either franchise, reiterating his stated goals of competing for championships, making an impact in the community and improving the fan experience. It also encouraged Kohlberg and Seldin to “try to sell consistent with the terms of the parties’ agreement” if they do not share those same priorities, and condemned them for “threatening baseless litigation” in an effort to coerce Ishbia into buyout negotiations.
The minority owners, meanwhile, have substantial questions about “decisions to invest money in projects and arrangements/side deals with other partners that violate the LLC agreement and are likely detrimental to the organization,” based on the redacted verified complaint that was made public Wednesday morning.
The examples of “mismanagement and lack of transparency” cited include a capital call on June 2, 2025, which the plaintiffs perceive as a leverage strategy to dilute minority owners; the belief that Ishbia entered into undisclosed side deals after his refusal to admit or deny whether side deals were being executed; and the funding of the Phoenix Mercury practice facility with little information about how it was funded outside of being in compliance with the LLC agreement.
In the verified complaint, the plaintiffs allege that Kisco began negotiating a buyout of its interests in September 2024, and that those discussions continued through mid-2025, until Kisco ultimately requested that Ishbia provide a final response to their offer to sell by June 1. The plaintiffs assert that the day after that requested deadline, Ishbia issued a capital call with little notice, demanding that “all members provide their pro rata share of the call.”
Their dispute also revolves around the plaintiffs’ assertion that Ishbia “arbitrarily selected a de minimis per unit valuation” for their interests that was “untethered to the value of any one unit or the Suns franchise as a whole,” rather than price each unit at its “fair market value.”
The plaintiffs further claim they have been unable to receive basic information or transparency around use of funds and are seeking clarity on any potential side deals and unilateral expenditures from Ishbia.
