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Baxter Holmes
a pair of Phoenix Sun According to a copy of the trial received by ESPN, former owner Robert Sarwar had a holdover from the previous regime that was a holdover under former owner Robert Sarwar, alleging that the current sun owner Matt Ishabia refused to reach the internal record.
The trial was filed in Delaware on August 21 under the seal, and a rearred version was made available on Wednesday. The lawyers who filed it represented Casco WC Sports II and Kent Circle Investment. Andy Kohberg is the founder, chairman and CEO of Kesco Senior Living, and the Chairman of the Scott Saledin Kent Circle Partners. Both men were minority owners under Sarwar, who sold the sun and Mercury In view of Sarwar’s conduct in 2023 and NBA investigation in the workplace culture of the team.
Ishbia bought a 57% control stake for $ 2.28 billion, as ESPN reported, Sarwar sold his 37% stake for $ 1.48 billion.
At the time of sales of 2023, 14 of the 16 partners in Sons’ Group accepted Ishhabia’s bioout offer in an evaluation of $ 4 billion. Kohlberg and Seldin were only two who did not sell.
“Our customers sued to achieve records for whom they deserves Suns’ minority owners,” Michael Karlinsky and Quinn Imanuel’s Michael Barlow, who are representing minority owners, wrote in a statement on Wednesday. “They are concerned with the manager’s perspective towards minority owners, and want more information about some expenses and capital in which the manager is busy. Transparency with minority owners is not optional, and our customers feel that it is important for the success of the Sun.”
Sixth against the organization from November 2024 refused to comment on the trial. The other five were present or former employees. Some of his allegations include discrimination, vengeance, oppression and wrong termination.
In the complaint, lawyers representing Seldin and Kohlberg say that in September 2024, Kohberg began making a purchase with a Ishabia advisor. Celdin, meanwhile, did not search for a purchase. Kohlberg’s talks continued through 2025, with a asking for a final response from Ishabia until 1 June. At that time, lawyers say that the next day, Ishbia made a capital call on 2 June, “to pressurize and dilute” to thin the shares owned by the minority owners of Suns.
In the complaint, the lawyers representing Seldin and Kohlberg also said that they learned that Ishbia could enter the unknown side deals along with other members of “. [Suns]Including the side deal, related to capital calls. “They say they are not able to get information about the team’s expenditure, and they raised the issue with the funding of Mercury’s $ 100 million practice facility, which the team unveiled in July 2024.
They say that Ishbia refused to provide any information about how the convenience was funded, besides saying that the team “complies with its duties under the LLC agreement.”
On Tuesday, lawyers representing Surya and Ishbia sent a letter, obtained by ESPN, to lawyers representing Kohberg and Seldin.
In the letter, Sons says that Kohlberg and Celdin demanded that Sons buy their ownership shares in $ 825 million, a figure that would keep the team’s price for about 6 billion dollars – an increase of 60% from the price when Ishbia bought its control interest in 2023. Suns says that there is no obligation to buy them.
“make no mistake, [Ishbia] The company and its teams do not intend to reduce or slow down their investment, “lets the letter.” In contrast, [Ishbia] Whatever the championship will continue to do the flash and mercury to position, ensure a positive team culture, creating a permanent impact on the Greater Phoenix community and improving fan experience. [Ishbia] The luxury tax is not afraid to exceed the line and there are other commitments to ensure that the Sun and Mercury remain first-in-class operations.
“If your customers do not share these similar priorities, perhaps they should try to sell continuously with the terms of the parties’ agreement. Instead, Kohlberg and Seldin have resorted to threatening the litigation and sensational press coverage, which is as a means of intimidation and forced. [Ishbia] In unaffected and unfair procurement talks. that will not work. [Ishbia] And this [Suns] These will not be fed up with these fast and derogatory strategy. ,
