The minority owners of the two Phoenix Suns have filed a complaint against Suns Legacy Holdings because they refused to “allow the inspection of books and records” and they consider themselves eligible.
Suns Minority Owner Andy Kohlberg, Scott Selding sues the team
The Sun’s minority owner is reportedly a retention of a previous regime under former owner Robert Sarver, who claimed that the current owner, Mat Ishbia, refused to access internal records.
The complaint was filed in a Delaware court and on August 21, the investments representing minority ownership organizations Kisco WC Sports II, LLC and Kent Circle were invested by the New York-based law firm Quinn Emanuel.
Andy Kohlberg is the CEO of Kisco Senior Living, and Scott Seldin is the president of Kent Circle Partners, according to the Ocala Ranch website. Kohlberg and Seldin are minority owners of the Sun.
When Sarver was the team boss, Kohlberg served as vice chairman of the Suns. Sarver sold the Suns and WNBA’s Phoenix Mercury in 2023 after the NBA investigated Sarver’s behavior and the team’s workplace culture.
“Our clients filed a lawsuit to obtain records of minority owners who are entitled to be Suns,” Quinn Emanuel’s Michael Carlinsky and Michael Barlow said in a statement.
“They are concerned about the manager’s attitude toward minority owners and want more information about managers’ involvement in certain spending and capital. Transparency with minority owners is not optional and our clients believe this is crucial for the Sun’s success.”
The lawsuit cites undisclosed vice deals, violating the LLC agreement
The lawsuit claims that the lawsuit seeks information about Sun’s business and financial status, as well as violations of the LLC agreement, information on how ISHBIA handles the franchise, and potential conflicts of interest.
The complaint said it also involved Ishbia’s “unpublicated incidental transaction” and unilateral fees. The complaint said the “sub-transaction” was deemed to be a possible breach of the LLC agreement.
Additionally, Kohlberg and Seldin said they were unable to obtain information about the team’s spending and they asked questions by funding Mercury’s $100 million practice facility.
They claimed Ishbia refused to provide any information on how the facility would be funded. However, the two noted that Phoenix “complied with its duties under the LLC agreement.”
According to ESPN’s Baxter Holmes, the Suns declined to comment on the lawsuit, the sixth place in the group since November 2024.
