Two minority owners of the Phoenix Suns have sued the team and its controlling owner Mat Ishbia, demanding to see records in order to investigate the status of the team’s business and financial condition.<\/p>\n
According to a redacted copy of the lawsuit that was filed last week in Delaware Court and obtained by The Associated Press, Kisco WC Sports II, LLC, and Kent Circle Investments, LLC, allege that Ishbia and Suns Capital Group are depriving other members of ownership with basic information about the management of the team.<\/p>\n
\u201cOur clients sued to obtain records to which they are entitled as minority owners of the Suns,” Michael Carlinsky, a co-managing partner of Quinn Emanuel Urquhart & Sullivan and attorney for the plaintiffs, said in a statement. “They are concerned by the manager\u2019s approach towards minority owners, and want more information about certain spending and capital raises in which the manager has engaged. Transparency with minority owners is not optional, and our clients think it is critical to the success of the Suns.\u201d<\/p>\n
In the lawsuit, the plaintiffs say they’re making their demand for records in search of information that could reveal possible breaches of the partnership agreement, mismanagement of the company and conflicts of interests.<\/p>\n
The plaintiffs also cite a belief that Ishbia may have \u201centered into multiple undisclosed side deals with other investor members\u201d on things including the funding of the team’s practice facility.<\/p>\n
The Suns didn\u2019t immediately respond to a request for comment from The Associated Press.<\/p>\n
Ishbia, a mortgage executive, bought a majority stake<\/a> of the Phoenix Suns and Phoenix Mercury from the embattled owner Robert Sarver for $4 billion<\/a> in December 2022. Ishbia and his brother Justin said then that they would be acquiring more than 50% of the franchises, which includes the entirety of Sarver\u2019s share as well as some holdings from minority partners.<\/p>\n The sale was officially approved in February of 2023.<\/p>\n Last week’s lawsuit marked the latest in a string of multiple legal actions against the Suns and Mercury.<\/p>\n Last month, the Suns confirmed it fired Gene Traylor<\/a>, a former security manager who filed a lawsuit against the team in May alleging discrimination, harassment and unlawful retaliation. The team said at the time that Traylor was terminated after an outside investigation found he’d violated company policies regarding confidential information.<\/p>\n Earlier in July, former Mercury interim coach Nikki Blue filed a lawsuit against the organization<\/a>, alleging unequal treatment based on race and gender, unequal pay based on race and that her employment was terminated in retaliation for complaints about unequal treatment.<\/p>\n