A lawsuit brought by Phoenix Suns and Phoenix Mercury minority owners Kisco WC Sports and Kent Circle Investments against Suns Legacy Holdings—the Delaware LLC that owns the Suns and Mercury—to inspect financial documents has been dismissed. However, the legal battle pitting the two minority owners against majority owner Mat Ishbia is nowhere near finished.
In August, Kisco, which is led by Andrew Kohlberg, and Kent Circle, which is led by Scott Seldin, sued Legacy in Delaware’s Court of Chancery. They sought a court order authorizing their inspection of financial records. Kisco and Kent Circle argue those records would shed light on how much their ownership is worth and relate to alleged breaches of fiduciary duties that have harmed their stakes.
The lawsuit was dismissed last Friday. Michael Carlinsky, an attorney at Quinn Emanuel Urquhart & Sullivan and counsel to Kisco and Kent Circle, said in a statement that his clients “succeeded in their books and records action in obtaining information we were seeking and have discontinued that case.” Carlinsky added that Kisco and Kent Circle will continue litigation over claims of alleged mismanagement “and other misconduct.”
As Kisco and Kent Circle tell it, Legacy, under Ishbia’s leadership, used a capital call on June 2, 2025, to exert pressure and dilute their interests. They also accuse Ishbia of entering into side deals and failing to disclose how a practice facility for the Mercury was funded.
The Suns and Mercury have a different take.
Last week, Legacy and its manager, Suns Capital Group, sued Kisco and Kent Circle in Delaware’s Court of Chancery. Legacy accuses Kisco and Kent Circle of manufacturing a “public drama with the aim of forcing an extortionate buyout.” Legacy further accuses the two minority owners of trying to manipulate “the overhang of this contrived legal drama to force a buyout on terms far beyond what the market will bear.”
Legacy says that as Ishbia—who bought a majority stake of the Suns in December 2022 for $4 billion—assumed control of the franchise, all 16 of the limited partners were offered the chance to cash out “at a massive profit” equaling “nearly 20 times their invested capital.” Fourteen took the deal. Kisco and Kent Circle did not.
Legacy further maintains that with Ishbia at the helm of the team, both the Suns and Mercury have been the beneficiaries of sizable investments. Legacy’s complaint refers to “bold trades, competitive salary commitments for star players, construction of a world-class practice facility, and the signing of creative, exposure-enhancing broadcast agreements” as among those investments.
In 2024, Legacy says it informed Kisco and Kent Circle that a capital call was anticipated in 2025 to gain “additional funds to cover payroll, luxury tax payments, and other near-term obligations.” As Legacy tells it, the capital call was authorized under relevant operating agreements. The capital call was made on June 2, 2025, and through it, each investor could allegedly contribute a pro rata share based on ownership percentage in exchange for “new Legacy units” that would be issued at the same per-unit price from previous calls. If an investor declined to opt in, other existing investors could buy new units. Stated more bluntly, if an investor declined to contribute, they would risk a dilution of their stake.
Kisco and Kent Circle maintain Legacy violated fiduciary duties through this call, which they portray as an attempt to force them to sell their shares at values lower than the market. According to Sportico’s most recent NBA and WNBA franchise valuations, the Suns are worth $5.09 billion and the Mercury are worth $250 million. Legacy insists Kisco and Kent Circle are wrongly interpreting their contractual rights and have manufactured a legal controversy to try to force Ishbia to buy out their interests “at an exorbitant premium.”
Legacy, which is represented by Kevin R. Shannon of Potter Anderson & Corroon, seeks a declaration by the court of the validity of the June 2 capital call and an additional funding round held on July 8. Legacy maintains the manager had “sole and absolute discretion” under the operating agreement to administer the capital call and funding round.
In a statement shared with Sportico, a Suns spokeswoman described Kisco and Kent Circle as “litigious limited partners who are using the courts to try to leverage a buyout.” The spokeswoman added that Kisco and Kent Circle “dropped their books and records complaint because the organization is and has been fully transparent about its operations and success.”
While the two sides are waging a public battle through litigation, it’s possible their dispute will end with a settlement where Kisco and Kent Circle are bought out at a price all the parties find acceptable.