Phoenix Suns minority owners Kisco WC Sports and Kent Circle Investments have sued the team in a Delaware Chancery Court, demanding a court order that permits them to investigate what they contend are potential breaches of a limited liability company agreement, mismanagement of the team and conflicts of interest.
The complaint, authored by Michael A. Barlow and other attorneys at Quinn Emanuel Urquhart & Sullivan, was originally filed on Aug. 21 with a partially redacted version released on Wednesday. The complaint contends Kisco and Kent Circle became “dissatisfied” with Suns Capital Group LLC as manager of the team, of which Mat Ishbia owns a majority stake following his purchase in December 2022 for $4 billion.
Kisco says it began to negotiate a buyout of its interests last September, and though Kent Circle didn’t seek a buyout, it also possessed “growing concerns” about the management.
As told by the plaintiffs, Suns management has refused to permit them to inspect the books and financial records that are crucial for understanding not only how the team is run but also how much their stakes are worth. Management is described as engaging in a “pattern of conduct” that shields from review such information as “the circumstances surrounding capital call” held on June 2, 2025, which is depicted as being “part of a leverage strategy to exert pressure on and dilute the company’s minority owners.”
The call related to Kisco demanding that Suns Capital Group LLC “provide a final response to Kisco’s offer to sell its units by June 1, 2025.” According to the complaint, management didn’t respond in good faith to the offer and instead issued a call for the next day, June 2. The call allegedly had “no advance notice” and demanded that “all members provide their pro rate share of the call.”
Kisco and Kent Circle contend that the per-unit valuation expressed on the call “is strikingly low and bears no relationship to the actual value of the company which is worth billions, as Mr. Ishbia’s $4 billion franchise purchase and more recent sales data establish.”
To that end, the complaint references the sale of the Boston Celtics in April 2025 for $6.1 billion and the sale of the Lakers for $10 billion as evidence that the value of NBA franchises is escalating. The alleged low value of the Suns shares is described as “baseless” and posing a “significant risk to all minority owners” in the team.
The complaint, significant portions of which are redacted, also suggests there is “reason to believe” that Suns Capital Group has “entered into multiple undisclosed side deals with other investor investors.”
The plaintiffs also raise questions about the funding of a practice facility for the Phoenix Mercury WNBA franchise, which Ishbia owns. The complaint suggests it was “seemingly paid for using” Suns funds but that minority owners have been “provided virtually no information” as to how it was funded and the process used to determine its funding.
Kisco and Kent insist their demands for documents and other materials are authorized by the LLC Agreement and “fundamental concepts of good faith and fair dealing.” Though quoted portions of the LLC Agreement are redacted in the complaint, it argues the relevant language states that all owners must be “treated equally, including with respect to capital calls.” The gist of the argument is that their legal rights have been railroaded by management and want a court to step in.
Sportico has asked the Suns for comment. Attorneys for the team’s management will have the chance to answer the complaint and deny the allegations. The complaint doesn’t reference arbitration or mediation, but it’s possible that such alternative dispute mechanisms are contractually obligated for Suns ownership disputes before a party can petition a court. Likewise, the Suns might assert that team disputes are ordinarily reviewed by grievance procedures outlined by the NBA constitution and bylaws, which govern teams and owners, and ultimately overseen by NBA commissioner Adam Silver.
Even without an alternative dispute resolution argument, the Suns might insist they have complied with the LLC Agreement and that the lawsuit is motivated not by legal concerns but by Kisco and Kent demanding more for their shares than the team is willing to pay.