Suns Sued By Minority Owners Over Access, Transparency

Two Phoenix Suns minority owners have filed a complaint against Suns Legacy Holdings for refusing to “permit the inspection of books and records,” to which they believe they’re entitled.

Suns Minority Owners Andy Kohlberg, Scott Seldin Suing Team

The Suns minority owners are reportedly holdovers from the previous regime under former owner Robert Sarver, and the pair alleges that current owner Mat Ishbia has refused access to internal records.

The complaint was filed in the Delaware Court of Chancery and dated Aug. 21 on behalf of the minority ownership groups Kisco WC Sports II, LLC and Kent Circle Investments by the New York-based Quinn Emanuel law firm.

Andy Kohlberg is CEO of Kisco Senior Living and Scott Seldin is president of Kent Circle Partners, according to the Ocala Ranch website. Kohlberg and Seldin are the Suns minority owners.

Kohlberg served as Suns vice chairman when Sarver was the team owner. Sarver sold the Suns and WNBA’s Phoenix Mercury in 2023 in the wake of an NBA investigation into Sarver’s conduct and the team’s workplace culture.

“Our clients sued to obtain records to which they are entitled as minority owners of the Suns,” said Michael Carlinsky and Michael Barlow of Quinn Emanuel in a statement.

“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.”

Lawsuit Cites Undisclosed Side Deals, Breaches Of An LLC Agreement

The lawsuit seeks information on the Suns’ business and financial condition, as well as breaches of an LLC agreement, how Ishbia is handling the franchise, and potential conflicts of interest, according to the filing.

It also concerns “undisclosed side deals” and unilateral expenses by Ishbia, the complaint alleges. The “side deals” are viewed as a potential violation of the LLC agreement, according to the complaint.

In addition, Kohlberg and Seldin said they have not been able to obtain information about the team’s expenditures, and they raised issue with the funding of the Mercury’s $100 million practice facility.

They allege that Ishbia refused to provide any information about how the facility was funded. However, the pair notes that Phoenix “complied with its duties under the LLC Agreement.”

The Suns declined to comment on the lawsuit, the sixth against the organization since November 2024. The other five were by current or former employees, per ESPN’s Baxter Holmes.