Overview
- Holdover partners Andrew Kohlberg and Scott Seldin filed counterclaims alleging fraud, breach of fiduciary duty and contract, asserting Ishbia uses the franchise as a personal piggy bank.
- The filing says Ishbia missed his own June 2 capital-call deadline and later used a debt-to-equity conversion to mask the shortfall, a move they argue should trigger dilution of his stake.
- Specific conflicts alleged include an above‑market loan to the team, a lease of the Mercury practice facility to an Ishbia-controlled entity, creation of a ‘Player 15 Group,’ and the arena naming‑rights sale to United Wholesale Mortgage.
- The naming-rights pact rebranded the venue as Mortgage Matchup Center in a reported 10‑year, nearly $115 million deal, which the minority owners say was not fully disclosed to them.
- Ishbia and Suns Legacy Holdings deny wrongdoing, calling the case a shameless shakedown, asserting his capital funding was timely and highlighting major investments, free local broadcasts and a $2 concessions menu as evidence of his approach.