Phoenix Suns minority owners Scott Seldin and Andy Kohlberg claim Mat Ishbia’s majority ownership stake could fall from 83.2% to 32.7% due to alleged failures to fund capital calls, according to a less-redacted court filing obtained by ESPN on Tuesday.
The filing stems from a lawsuit filed November 24 in Delaware State Court. Seldin and Kohlberg accuse Ishbia of financial misconduct and using improper tactics during two capital call raises in June and July 2025.
According to the filing, Ishbia initiated a $250 million capital call on June 2 with only 10 days’ notice. The minority owners claim new ownership units were priced at $10 million per unit, far below the $198 million per unit Ishbia paid just three months earlier. Both minority owners say they paid their portions under protest during two separate capital calls.
The filing alleges Ishbia used a “debt-to-equity conversion” to fund his portion, effectively contributing no new cash while minority owners funded approximately 38% despite owning only 13% of the company. Under the team’s operating agreement, Seldin and Kohlberg argue they should have been able to purchase the shares Ishbia failed to fund.
“The updated redacted filing shows that the $250 million capital call issued with only ten days’ notice was designed to allow Mat Ishbia to unfairly increase his ownership stake by severely diluting the minority owners,” said Michael Carlinsky, attorney for Seldin and Kohlberg.
A spokesman for Ishbia dismissed the claims as baseless publicity tactics.
“There is nothing new here, and the claims are ridiculous,” the spokesman said. “Unwilling to take responsibility and invest in the team, these guys are resorting to threats and publicity stunts to get Mat to buy them out just so they make more money.”
If a judge rules in favor of the minority owners, Seldin and Kohlberg could potentially acquire majority control with approximately 60% ownership of the Suns and Phoenix Mercury. Ishbia bought his 57% controlling stake in 2023 for $2.28 billion at a $4 billion valuation.