"The August suit claimed that Ishbia, who bought the team in 2023, blocked access to internal records and issued a June 2, 2025, capital call to pressure and dilute minority stakeholders. Seldin and Kohlberg allege that Ishbia, during the capital call, threatened to dilute their ownership stakes if they did not meet a 10-day deadline to fund a capital raise, while concealing that he missed the same deadline himself."
"The suit also alleges that Ishbia spent heavily on player and coaching contracts, paid significant NBA tax penalties and funded a lavish $20 million clubhouse called the Ra Ra Room, with co-owners sharing the costs. He also traded away future draft picks and passed up revenue opportunities, saying his focus was on winning and the fan experience. Despite the spending, the minority owners pointed out that Ishbia acknowledged the 202425 season was a failure."
Minority owners Seldin and Kohlberg allege Mat Ishbia blocked access to internal records and issued a June 2, 2025 capital call aimed at pressuring and diluting their stakes. The filing contends Ishbia threatened dilution unless investors met a 10-day funding deadline while concealing that he missed the same deadline, risking dilution of his own ownership. The complaint accuses Ishbia of decimating company finances, ostracizing partners, hiding transaction terms where he was on both sides, and spending heavily on contracts, penalties, a $20 million clubhouse, and trading future draft picks while passing on revenue opportunities. Ishbia’s spokesperson calls the suit a shameless shakedown and defends his investments and strategy.
Read at www.housingwire.com
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