Get the Most Out of the Cardinals Season
Join the Ultimate Phoenix Suns Community FOR JUST $36!
Gerald Bourguet Avatar
Mat Ishbia and the Phoenix Suns have rejected buyout demands from two limited partners as the franchise's valuation approaches $7 billion
Two of the Phoenix Suns‘ limited partners are demanding that Mat Ishbia’s “ISH Suns” LLC, the controlling stakeholder of Suns Legacy Holdings LLC, buys them out as the franchise’s valuation approaches an estimated $7 billion.
In a letter obtained by PHNX Sports, the attorneys for ISH Suns LLC rebuked demands from Kisco WC Sports II, LLC and Kent Circle Investments, LLC for ISH Suns to purchase their limited (non-controlling) interest in the team for $825 million, based on the enterprise being valued in excess of $6 billion — a 60 percent increase from the franchise’s value when Ishbia’s LLC first acquired a controlling interest.
A bookkeeping inquiry was filed on Aug. 21 to look into the Suns’ records. The attorneys for Kisco WC Sports II and Kent Circle Investments could not be reached for comment after multiple attempts via email and phone.
Mat Ishbia, Suns reject buyout demands
Mat Ishbia originally bought a majority stake in the Suns and Mercury for $4 billion in 2023, which was the highest sale price for an NBA franchise at the time. The letter alleges that valuation is now approaching $7 billion as a direct result of ISH Suns’ “massive investments in the organization” in the form of real estate, local media rights, stadium upgrades, fan experiences and talent for both teams, as well as the NBA’s newest media rights deal, the continued growth of the WNBA, and the recent sale prices of other NBA franchises like the Los Angeles Lakers and Boston Celtics.
Back in 2023, Ishbia gave the team’s 16 limited partners the chance to sell their interests at market value, using the same franchise valuation his LLC used to acquire the controlling share. Fourteen of those 16 partners accepted that initial buyout offer, while Kisco WC Sports II and Kent Circle Investments — and their respective principals, Andrew Kohlberg and Scott Seldin — were the lone holdouts.
In the letter, ISH Suns made it clear they do not object to Kisco WC Sports II or Kent Circle Investments marketing their interests and procuring offers from another buyer — subject to the “rights and obligations set forth in the parties’ agreement” and “applicable league rules — and would support any buyer interested in partnering with the company to help make the Suns and Mercury the premiere franchises in their respective leagues.
But the attorneys insist Kohlberg and Seldin have no right to demand that Ishbia’s LLC is the one to buy them out, believing the timing stems from the company’s current market value.
The letter also mentions that Ishbia’s LLC has no intention of reducing its investments in either franchise, reiterating his stated goals of competing for championships, making an impact in the community and improving the fan experience. It also encouraged Kohlberg and Seldin to “try to sell consistent with the terms of the parties’ agreement” if they do not share those same priorities, and condemned them for “threatening baseless litigation” in an effort to coerce Ishbia into buyout negotiations.
Comments
Share your thoughts
Join the conversation
The Comment section is only for diehard members
Open comments +
Scroll to next article
Share on FacebookShare on TwitterShare on Email
Don't like ads?