Phoenix Suns ownership dispute heads to mediation as Mat Ishbia seeks full control

The Phoenix Suns‘ contentious ownership battle is moving toward resolution through mediation. Mat Ishbia and minority owners Scott Seldin and Andrew Kohlberg have agreed to participate in a confidential binding mediation process, according to a court filing submitted Monday in Delaware state court.

The mediation could lead to Ishbia purchasing the minority owners’ 13% stake at a price determined by a mediator. If approved by the judge, the lawsuit will be jointly dismissed, and Ishbia’s ownership would increase to approximately 96% of the franchise.

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From litigation to negotiation

The legal dispute escalated significantly since its inception in August 2025, when Seldin and Kohlberg first sued Ishbia alleging mismanagement and lack of transparency. The situation intensified in November 2025 when the minority owners filed a second lawsuit, accusing Ishbia of using the team as a personal piggy bank and claiming financial misconduct.

According to court documents, the conflict centered around capital call raises totaling $250 million that Ishbia initiated in June 2025, followed by another in July 2025. Ishbia threatened the minority owners with a punitive dilution of their ownership interests if they failed to fund the calls within 10-day deadlines. Both Seldin and Kohlberg said they paid their portions, but later alleged that Ishbia himself failed to meet his funding obligations.

The stakes reached their peak when Seldin and Kohlberg claimed that under the team’s operating agreement, they should have been able to purchase the shares Ishbia failed to fund, potentially giving them a 60% controlling stake in the franchise.

Resolution on the horizon

A trial scheduled for late July has been removed from the calendar, signaling progress toward settlement. The mediation represents a significant shift from the adversarial proceedings that threatened Ishbia’s majority control of the franchise he purchased from Robert Sarver in 2023 for $4 billion.

When Ishbia acquired the Suns, 14 of the 16 partners in the ownership group accepted his buyout offer. Seldin and Kohlberg were the only minority owners who chose not to sell their shares at that time. A source familiar with the matter indicated that Ishbia had been in extensive conversations with both men about purchasing their shares prior to the litigation.

The resolution would mark the end of a tumultuous period for the Suns organization, which has faced seven lawsuits since November 2024, including allegations from current and former employees involving discrimination, retaliation, harassment and wrongful termination. The Suns have denied these allegations while maintaining their focus on basketball operations, currently holding a 39-28 record this season.