"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."
"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."
Mat Ishbia acquired a 57% stake in the Suns for $2.28 billion in a transaction valuing the team at $4 billion; the deal included Sarver's 37% stake and shares of 14 partners, with Kohlberg and Seldin retaining stakes. Minority investors filed suit alleging Suns Legacy Holdings refused inspection of books and records and that produced documents suggest undisclosed side deals and related-party transactions. Plaintiffs also cite opacity over a $100 million practice facility and contest a capital call tied to a low valuation after Kisco sought a buyout. Suns and Ishbia lawyers disputed the claims and raised a higher valuation.
Read at www.housingwire.com
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