Tanking Debate Continues As NBA Weighs Potential Fixes
The NBA had a record-setting trade deadline earlier this month and celebrated its biggest stars at All-Star weekend in Los Angeles this past weekend. However, tanking has been perhaps the most popular subject of discussion during the break in the regular season schedule.
A report 10 days ago indicated that the NBA is increasingly concerned about the issue and discussed it extensively at the most recent meeting of the league’s Competition Committee in January. Three days later, the league hit the Jazz with a $500K fine and docked the Pacers $100K for behavior that “prioritizes draft position over winning.” And two days after that, commissioner Adam Silver told reporters at his annual All-Star press conference that the NBA is considering “every possibly remedy” to reduce the practice of tanking.
As Adam Zagoria writes for Forbes, Silver acknowledged that tanking may be worse this season due to the widespread perception that the 2026 draft class is significant stronger than the ’27 and ’28 classes will be. Still, the league doesn’t seem content to sit back and let the issue sort itself out in the coming years.
According to Joe Vardon of The Athletic, approximately 10 potential solutions were discussed by league officials during All-Star week. Abolishing the draft entirely wasn’t among those possible rule changes, per Vardon, but Sam Amick of The Athletic says the “draft wheel” concept first proposed more than a decade ago by Celtics executive Mike Zarren has reentered the discussion.
Of course, any significant changes would require the approval of the NBA’s owners and likely the players’ union as well, Vardon notes.
Here’s more on the tanking dialogue that has taken off in recent weeks:
- In a pair of lengthy tweets, Mavericks minority owner Mark Cuban offered his thoughts on why it seems like tanking has gotten worse in recent years and makes a case for why the NBA should embrace it – or at least live with it – as a legitimate team-building strategy. By contrast, Suns majority owner Mat Ishbia strongly opposed the idea that tanking is a legitimate strategy, arguing (via Twitter) that it’s “much worse than any prop bet scandal” and that Silver and the NBA should be willing to make “massive changes” to fix the issue.
- ESPN’s Tim Bontemps is in favor of tweaking the lottery system so that after a certain point in the season – perhaps at the trade deadline, the All-Star break, or after a set number of games – wins would essentially count as losses for the sake of determining a club’s lottery record. For instance, if the cutoff were 50 games and a team opened the season by going 22-28, then tanked late in the year and went 4-28 down the stretch, that team’s record for lottery purposes would be 50-32, with those late-season losses added to the win column. The logic, Bontemps explains, would be to penalize – rather than reward – teams that are aggressively trying to lose during the last couple months of the season.
- Sam Quinn of CBS Sports breaks down several of the hypothetical tanking solutions that have been floated by fans and pundits, breaking down the positives and the negatives of each suggestion.
Suns Notes: Highsmith, Ishbia, Brooks, 2027 All-Star Game
The Suns have long been fans of Haywood Highsmith, according to Duane Rankin of The Arizona Republic, who hears from sources that the team has been eyeing the veteran forward for two years. Highsmith plans to sign a multiyear deal with Phoenix.
Rankin writes that the Suns view Highsmith as a strong fit due his “competitiveness and toughness.” Although Phoenix has a standard roster opening the team can use to sign Highsmith, the Suns are also expected to waive guard Cole Anthony, Rankin confirms.
Here’s more on the Suns:
- The Suns have already exceeded external expectations this season — they were only projected to win 31.5 games, and they’re currently 32-23, the No. 7 seed in the West and just three games out of the No. 3 spot. As Sam Amick of The Athletic writes, Mat Ishbia was widely criticized around the league for leaning into his Michigan State ties in his first couple years as owner, but instead of going away from those connections, he doubled down and went all the way in last offseason. Ishbia promoted Brian Gregory, his former assistant coach with the Spartans, to be the Suns’ new general manager, and worked with Gregory and CEO Josh Bartelstein to establish the team’s hardworking culture. “When people wanted to blame me last time, I wasn’t actually doing it my way,” Ishbia told The Athletic. “Now, I am, and there’s no question about it.”
- According to Amick, while James Jones was technically still Phoenix’s head of basketball operations last February, it was actually Bartelstein who spearheaded communications with rival teams interested in trading for Kevin Durant. League sources tell Amick the Rockets made a late pitch for Durant prior to last year’s deadline, offering a package that included Jalen Green and Jabari Smith Jr., but the Suns wanted Dillon Brooks in the deal and decided to wait until the summer to revisit trade talks. A Rockets source denies Smith was ever included in the offer, Amick adds.
- As impressive as Phoenix’s turnaround has been this season, the team still finds itself at an asset deficit after trading away so many draft picks and swaps to acquire Durant and Bradley Beal in the first place, Amick notes. The Suns will also carry Beal’s dead-money cap hit on their books for several more seasons, limiting their financial flexibility going forward.
- Speaking to the media on Saturday, All-Star guard Devin Booker says he has enjoyed playing with Brooks this season, as Rankin of The Arizona Republic relays (Twitter video link). “Dillon is a hardworking man. He’s someone to rally behind. He’s a fierce competitor. I wouldn’t want it any other way. I’d rather too competitive than to be the other way. It’s been a pleasure playing with him,” Booker said.
- Commissioner Adam Silver discussed the 2027 All-Star game, which Phoenix will host, at his Saturday press conference, per Rankin (Twitter video link).
Trade Rumors: Young, LaVine, Brooks, Deadline, AD, More
Sam Amick and Josh Robbins of The Athletic have confirmed Shams Charania’s report that the Hawks are working with Trae Young and his representatives to find the 27-year-old point guard a new team.
As Amick reported last week, Atlanta has been increasingly willing to discuss Young trades for weeks or even months after the Hawks showed no interest in pursuing an extension, but the market for the four-time All-Star seems to be limited. According to Amick and Robbins, Young is searching for a new deal “commensurate with a star player.”
To illustrate the point about teams being wary of acquiring the diminutive point guard, Amick and Robbins cite a team source who says the Kings — long viewed as a potential landing spot for last season’s assists leader — have “no interest” in trading for Young. Zach LaVine, whose contract is very similar to Young’s, is “known” to have interest in joining the Hawks, the authors add.
Regarding Marc Stein’s report about the Hawks discussing a trade that would potentially send Young to Washington and CJ McCollum to Atlanta, Amick and Robbins note that Young doesn’t fit the archetype favored by the Wizards‘ top front office executives, and speculate that Washington might want either draft compensation or a young player to take on his contract, which includes a $49MM player option for next season.
Young missed his fifth straight game Monday due to a right quad contusion.
Here are a few more trade-related rumors and notes from around the NBA:
- Don’t expect Suns small forward Dillon Brooks to be on the move in the next month. Gerald Bourguet of Suns After Dark reported (via Twitter) on Monday that Phoenix isn’t interested in moving the veteran wing due to both his on- and off-court contributions. Suns owner Mat Ishbia essentially confirmed as much just a few minutes later. On FanDuel TV’s Run It Back show (Twitter video link), former NBA big man DeMarcus Cousins said he if were running the Lakers, he would trade Austin Reaves for Brooks “in a heartbeat.” Ishbia’s response? “Don’t bother calling… Suns aren’t interested. Dillon’s not going anywhere,” he wrote (Twitter link).
- Amick, Josh Robbins and John Hollinger of The Athletic discuss the biggest storylines and questions ahead of the February 5 trade deadline, noting that Giannis Antetokounmpo‘s situation with the Bucks is the one that holds the most intrigue around the league. All three think Antetokounmpo is more likely than not to stay put during the season, though that would depend on whether the two-time MVP requests a trade. Other topics include whether Anthony Davis will be traded by the Mavericks and role players who could appeal to contending teams. Hollinger lists Wizards forward Justin Champagnie as an example of a player on a team-friendly contract who could be a valuable in-season addition.
- Speaking of Davis, he and Kyrie Irving wanted to play together for years before it finally came to fruition last February, writes Christian Clark of The Athletic. However, the Mavericks duo only played two-and-a-half quarters together prior to Davis suffering a left adductor strain. Less than a month later, Irving tore his ACL, and there’s no timeline for his return. Whether they’ll be able to team up again before the season ends is an open question with Dallas expected to listen to offers for Davis, Clark adds.
Western Notes: Powell, Beringer, Two-Ways, Booker, Suns
Mavericks minority owner Mark Cuban shot down a report indicating that big man Dwight Powell will likely retire at the end of this season, tweeting that it’s “not true.”
Powell, 34, no longer plays a significant role in Dallas, but has been with the Mavericks for over a decade and has appeared in 20 of the club’s 25 games so far this season, averaging 10.9 minutes per night.
Powell is on a $4MM expiring contract in 2025/26, so if he does intend to extend his career beyond this season, he’ll need to sign a new deal. In all likelihood, he’ll be a minimum-salary player going forward.
We have more from around the Western Conference:
- The Timberwolves assigned rookie center Joan Beringer to the G League for the first time this season on Tuesday, per the team (Twitter link). Beringer has played limited minutes at the NBA level so far this fall, so he’ll get an opportunity to take on a more significant role for the Iowa Wolves when they face the Motor City Cruise this Friday.
- Two-way contracts recently signed by LJ Cryer (Warriors), Malevy Leons (Warriors), and Tyler Smith (Rockets) are all for two years, Hoops Rumors has learned. That means Golden State and Houston will have the option of retaining those players on their two-way deals through the 2026/27 season. However, it’s somewhat rare for a player to play out a full two-year, two-way contract, as most are either promoted or waived before the deal expires.
- After Suns head coach Jordan Ott indicated over the weekend that Devin Booker has a chance to return to action on Wednesday from his groin injury, the team officially upgraded the star guard to questionable for its NBA Cup showdown with Oklahoma City, tweets Justin Martinez of The Oklahoman.
- ESPN’s Baxter Holmes shares the latest details on the legal battle between Suns owner Mat Ishbia and a pair of minority shareholders, Scott Seldin and Andy Kohlberg. While attorneys for Seldin and Kohlberg are taking aim at Ishbia’s majority control of the franchise, a spokesperson for Ishbia dismissed the claims in the lawsuit as “ridiculous,” according to Holmes. “Unwilling to take responsibility and invest in the team, these guys are resorting to threats and publicity stunts to get Mat to buy them out just so they make more money,” that spokesperson said.
Suns Minority Owners Accuse Ishbia Of Using Team As ‘Personal Piggy Bank’
In a legal filing in Delaware State Court, Suns minority owners Andy Kohlberg and Scott Seldin allege that majority owner Mat Ishbia is using the team as his “personal piggy bank” and is hiding details about his spending, according to reports from Doug Haller and Mike Vorkunov of The Athletic and Baxter Holmes of ESPN.
It’s the latest development in a legal battle between the various Suns shareholders. Kohlberg and Seldin sued the Suns and Ishbia in August, with Ishbia filing a countersuit against the pair of minority owners in October. This legal filing is a response to Ishbia’s countersuit.
“Ishbia does not own the Suns to make money for the company but he does operate it as a personal fiefdom for his own personal gain and for the benefit of his other businesses, including his mortgage company United Wholesale Mortgage,” the latest filing states. “The reality is that Ishbia is using the Suns as his personal piggy bank, including through a lengthy list of conflicted transactions — only some of which the minority owners are aware of.”
As The Athletic and ESPN relay, the allegations Kohlberg and Seldin make against Ishbia in the filing include:
- Extending a loan to the Suns at an interest rate that was far above the going market rate.
- Selling naming rights to the Suns’ arena to his own mortgage company without disclosing the details.
- Leasing the Phoenix Mercury’s practice facility from himself without disclosing the details.
- Establishing an entity called the “Player 15 Group” that allegedly holds assets which should rightfully belong to the Suns.
- Turning the Suns and Mercury into money-losing teams while profiting through United Wholesale Mortgage.
Kohlberg and Seldin also specifically cite a pair of capital calls that took place in June and July of 2025, contending that Ishbia set up those capital calls in the hopes of diluting their shares in the team, which could have happened if they didn’t pay within a 10-day window. The two minority owners contributed the necessary capital in each case, but they say Ishbia didn’t pay his own shares by the deadline and attempted to hide it by using a debt-to-equity conversion to make up the difference.
According to Kohlberg and Seldin, they should have been given the opportunity to buy the shares Ishbia didn’t fund himself, which would have allowed them to take control of a larger stake in the franchise.
“In other words,” the filing states, “Ishbia blundered into the very trap he set for the minority owners and faced a devastating dilution of his ownership interest if his failure was discovered — a failure that would wipe off his net worth and put his continued status as an NBA team owner and governor in jeopardy.”
Ishbia, who has bought out the rest of the Suns’ minority owners since assuming majority control of the team in 2023, denied the allegations through a spokesperson.
“This isn’t a lawsuit; it’s a shameless shakedown dressed up as legal process,” Ishbia’s spokesperson said in a statement. “From day one, Mat Ishbia was transparent that he was going to do things differently. Contrary to how the team was previously managed, Mat made it very clear he would invest significantly into the Suns and Mercury. He told all the investors that they could step up with him or sell their stake and step aside. Kohlberg and Seldin stayed in and now they’re trying to freeload off the value Mat created.
“Kohlberg and Seldin want to drag the organization backward, and they openly admit in this filing that investing in the team and its fans ‘makes no business sense.’ They are advocating neglect. They are free to sell their shares in the open market and if they don’t, they should be prepared to lose this lawsuit and participate in Mat’s continued investments in the teams and community.”
Ishbia and his representatives have previously argued that his investments in the team have helped bump the value of the Suns from $4 billion to $6 billion since he took over as the majority owner. Ishbia said in the latest episode of The Draymond Green Show that Kohlberg and Seldin “can sell if they want” and should appreciate the fact that the franchise valuation is on the rise.
“I told them, ‘Instead of suing me, why don’t you just write me a letter and say thank you? Your investment is worth more,'” Ishbia said (Twitter video link).
Suns Notes: Ishbia, Ott, Nash, Williams, More
In the months leading up to the 2025/26 campaign, owner Mat Ishbia talked repeatedly about a desire to turn the Suns into a tough, physical team that consistently plays hard and with aggression on both ends of the court. Ishbia was encouraged by the way the team took on that new identity during the preseason, but acknowledges there’s still work to be done, as Duane Rankin of The Arizona Republic relays.
“It’s not all the way there yet,” Ishbia said. “Am I surprised? I’m really happy with where we’re at, but at the same time, we have a long way to go. Doing the things we’ve been talking about, an identity we’ve been talking about, we’re going to do it, but doing it for 48 minutes and then doing it for 48 minutes for 82 games, there’s still a process.”
Here’s more on the Suns:
- First-year head coach Jordan Ott has helped foster the team’s emphasis on toughness and defense through competitive practices and a steadfast work ethic, writes Doug Haller of The Athletic. While there will undoubtedly be bumps along the way, Wednesday’s season-opening comeback win against Sacramento was reflective of Ott’s own resiliency, according to Haller.
- Ishbia announced last month that Steve Nash has returned to the Suns as a senior advisor while also being an analyst for Amazon Prime Video. Nash recently explained what his advisory role with the Suns entails, referring to himself as a “sounding board” who can provide a big-picture perspective the team might lack at times during a long season. “I’m there as a resource, to share my experiences,” Nash said, per Rankin. “We have a rookie coach, a rookie GM (Brian Gregory). An organization that’s trying to reset. Someone that got a chance to play in the league for 17 years, got to coach in the league, I think there’s an opportunity just to be able to share my experiences, my thoughts around the game.”
- Offseason acquisition Mark Williams made his Suns debut on Wednesday, recording six points and 11 rebounds in 24 minutes off the bench, with a game-high plus/minus (+15). “It meant a lot,” Williams said (story via Rankin). “It felt good. The energy in the arena was great. Teammates had my back. Good to be out there.” Williams, who will be a restricted free agent next summer, is on a minutes restriction for the time being, Rankin adds.
- In a press release, the Valley Suns — Phoenix’s G League affiliate — officially announced the team’s coaching staff, tweets Rankin.
Suns Notes: Ishbia, Lawsuits, Williams, Centers, Butler, Jones
A pair of Suns minority owners dismissed their lawsuit against majority owner Mat Ishbia and the team on Friday, but intend to file a new suit over what their lawyer refers to as Ishbia’s “mismanagement” of the franchise, reports Mike Vorkunov of The Athletic.
It’s the latest development in a legal battle within the Suns’ ownership group. Andy Kohlberg (Kisco WC Sports) and Scott Seldin (Kent Circle Investments) sued the Suns and Ishbia in August, alleging that they weren’t being permitted to view records and financial information that would help them understand how the team was being run and how much their shares are worth. Ishbia filed a countersuit earlier this week, arguing that the initial suit was part of a negative PR campaign against him as those minority owners sought a buyout at an “extortionate” cost.
“Our clients succeeded in their books and records action in obtaining information we were seeking and have discontinued that case,” Michael Carlinsky, an attorney representing Kohlberg and Seldin, said in a statement, per Vorkunov. “We are now focused on the critical phase in our litigation, which will involve our clients’ assertion of claims for mismanagement and other misconduct and look forward to their day in court.”
Ishbia and the Suns remain confident that nothing will come of the new suit.
“This is more of the same from litigious limited partners who are using the courts to try to leverage a buyout,” Suns spokesperson Stacey Mitch said. “They dropped their books and records complaint because the organization is and has been fully transparent about its operations and success. We are confident that we will prevail in court.”
We have more on the Suns:
- After taking part in a competitive scrimmage on Saturday, Suns center Mark Williams is on track to be available for the team when the regular season tips off on Wednesday, writes Duane Rankin of The Arizona Republic. “This was the most minutes he’s seen in a scrimmage that we’ve played,” head coach Jordan Ott said. “Mark is big. You can see his size out there, both ends. Offensively, puts pressure on the rim. Defensively, when someone is driving in there, you have to make the decision.” Phoenix has taken a cautious approach with Williams this fall due to his extensive injury history — he has played just 106 of 246 possible regular season games during his first three years in the NBA.
- While Williams is expected to start at center, Ott said the rotation in the middle will be “fluid” early in the season, per Rankin. Oso Ighodaro, Nick Richards, and rookie Khaman Maluach will also be in the mix. “On a night-to-night basis, we’ll have a plan going into it, but we have to be a little fluid as coaches and kind of read the games and see exactly who is impacting winning out there on the court on a night-to-night basis,” Ott explained.
- According to Rankin, Ott called it a “really tough” decision to cut Jared Butler, who had a big preseason with the Suns while on a non-guaranteed Exhibit 9 contract. Butler averaged 15.5 points, 4.2 assists, 3.2 rebounds, and 1.8 steals in 20.9 minutes per game across four preseason outings, but was waived because Phoenix is operating slightly over the tax line and apparently doesn’t plan to fill its 15th roster spot for now. “He was part of us for multiple months,” Ott said of Butler. “He really helped our group. Helped his teammates. Helped our intensity of camp. … Hopefully at the end of it, JB knows that we tried to do the best we could. Hopefully, we helped him.”
- Former Suns general manager James Jones said on Thursday that his time in Phoenix was “phenomenal” and spoke about his new role in the NBA’s league office. Rankin has the highlights in a story for The Arizona Republic.
Mat Ishbia Countersues Suns’ Minority Shareholders
Suns owner Mat Ishbia has filed a countersuit against a pair of minority owners who sued Ishbia and the team earlier this year, according to Mike Vorkunov of The Athletic.
That original suit, which was brought forth in August by Andy Kohlberg (Kisco WC Sports) and Scott Seldin (Kent Circle Investments), alleged that Ishbia wasn’t allowing them to view records and financial information that would help them understand how the franchise is being run and how much their shares are worth. Kohlberg and Seldin, expressing dissatisfaction with Ishbia’s management of the team, were reportedly seeking a buyout from the majority owner at a price point of $825MM, which would value the Suns at $6 billion.
Ishbia, who bought the Suns in 2023 at a valuation of $4 billion, offered to buy out the team’s minority owners when he took over control of the franchise and says that Kohlberg and Seldin were the only ones who passed on the offer.
Ishbia’s new suit states that he has invested significantly in the Suns and the WNBA’s Phoenix Mercury since buying the team and sought funds on a capital call in June to “cover payroll, luxury tax payments and other near-term obligations,” per Vorkunov. The suit also alleges that Kohlberg and Seldin didn’t want to invest during that round of fundraising and that their lawsuit was part of a negative PR campaign against Ishbia as they sought a buyout from him at an “extortionate” cost.
“When Mat Ishbia bought the Suns and Mercury, he couldn’t have been clearer with investors: he was going to invest in the teams, the fans, and the community,” an Ishbia spokesperson said in a statement. “Every investor had the choice at that point — sell at premium or stay in and invest alongside him. Andy Kohlberg and Scott Seldin want it both ways. They don’t want to invest in the teams, but they are demanding a payday significantly higher than what Mat originally offered, which was still over 20 times their original investment. That’s not how it works, and we’re confident we’ll prevail in court.”
There has been no shortage of legal battles in Phoenix since Ishbia took over the team. Outside of this dispute between the team’s investors, several former employees have filed lawsuits against the Suns, alleging discrimination, harassment, and wrongful termination, per Vorkunov. Ishbia said at media day that he wasn’t looking to settle those suits.
“The truth is, you actually got to win a lawsuit,” he said. “And where I’m different than most successful people … is like, we don’t settle. If we don’t do anything wrong, I’m not paying someone. I hope you guys all report on how many lawsuits we actually lose.”
Suns Notes: Williams, Maluach, Gillespie, Ishbia
An inability to stay healthy has been the biggest impediment to success in Mark Williams‘ NBA career, so the Suns entered training camp with a plan to help him avoid injuries, writes Duane Rankin of The Arizona Republic. Williams appeared in 43, 19 and 44 games during his three seasons in Charlotte, and Phoenix officials understood they had to try something different after landing him in a draft-night trade.
“We know Mark’s history and we’re trying to change it,” coach Jordan Ott said Friday. “We’re taking an approach. He’s been out here and has been good. This is Sept. 26. Definitely added some strength to him. You can see it when he walks in the building. He definitely has great size. Excited to see where he goes, but we still do have a couple more weeks.”
Although the exact nature of their concerns was never specified, the Lakers opted to rescind a trade for Williams in February. L.A. had viewed Williams as a rim protector and a lob partner for newly acquired Luka Doncic, but something in his physical made the team change its mind. He was able to resume playing for the Hornets after the trade was called off.
Rankin indicates that Williams’ minutes might be limited in the Suns’ four preseason games so they can preserve him for the regular season. Ott noted on Saturday that Nick Richards, Khaman Maluach and Oso Ighodaro have been getting most of the work in training camp, but that doesn’t mean there are concerns about Williams’ physical condition.
“He’s in a good place,” Ott said. “We want Mark to know we care about him this year and going forward so we have a really intentional plan for him.”
There’s more from Phoenix:
- Maluach had a difficult time during Summer League, but fellow Duke alum Grayson Allen sees promise in the rookie big man, Rankin tweets. “He talks non-stop on the court,” Allen said. “Like he’s commanding the defense, calling out coverages, constantly talking. For a rookie, let alone a 19-year-old guy to come into a gym and do that first day of training camp is impressive. He’s already ready in that aspect.”
- Hoping for a larger role in his second season with the Suns, Collin Gillespie spent the summer working to improve his jumper and take better care of the ball (Twitter video link from Rankin). “The way (Ott) talked about smaller guards like myself, we have to be able to shoot off the dribble and be efficient and not turn the ball over,” Gillespie said. “So I just worked on decision making, shooting, shooting from deeper, shooting off the dribble.”
- At Wednesday’s media day, owner Mat Ishbia responded to questions about five workplace discrimination lawsuits recently filed against the Suns and the WNBA’s Phoenix Mercury, per Jason Wolf of The Arizona Republic. Ishbia dismissed the claims as “ridiculous” and “a cash grab,” adding, “We don’t settle. So if we don’t do anything wrong, I’m not paying someone.” ESPN’s Baxter Holmes reported this week that employees were told in the spring that to keep their jobs they had to sign an agreement limiting their ability to sue the team over workforce matters.
Suns Sued By Two Minority Shareholders
A pair of Suns minority shareholders – Andy Kohlberg of Kisco WC Sports and Scott Seldin of Kent Circle Investments – have sued the team in a Delaware Chancery Court, reports Michael McCann of Sportico. The minority owners say in their complaint that they’re “dissatisfied” with the way Suns Capital Group LLC (Mat Ishbia‘s group) has managed the team.
As McCann details, Kisco and Kent Circle claim they haven’t been allowed to view records and financial information that would help them understand how the franchise is being run and how much their shares are worth. They’re demanding a court order that would allow them to look into alleged “potential breaches of a limited liability company agreement, mismanagement of the team and conflicts of interest,” McCainn writes.
According to Gerald Bourguet of PHNX Sports, when Ishbia took over as the Suns’ controlling owner in 2023, he gave the team’s 16 limited partners the opportunity to sell their stakes in the team at the same $4 billion valuation that applied to his majority stake. Fourteen of the 16 partners took that buyout offer, with Kisco and Kent Circle representing the only two holdouts.
Kisco has since sought a buyout from Ishbia’s group; there are conflicting reports on whether Kent Circle has done the same. Bourguet’s report suggests both minority stakeholders have looked to be bought out, while McCann says Kent Circle hasn’t done so but has expressed “growing concerns” about management.
The price that Kisco and Kent Circle are demanding from Suns Capital Group LLC to buy them out is based on a valuation in excess of $6 billion, according to Bourguet. The complaint, per McCann, alleges that Ishbia’s LLC didn’t respond in good faith to Kisco’s efforts to divest its shares by June 1 and instead issued a capital call for June 2 with “no advance notice.” The per-unit valuation conveyed on that call was “strikingly low and bears no relationship to the actual value of the company which is worth billions,” according to the plaintiffs.
In a letter to Kisco and Kent Circle, Suns Capital Group LLC indicated it has no objections to the minority partners finding another buyer for their shares, per Bourguet. However, the majority ownership groups insists that the minority stakeholders have no right to demand Ishbia’s LLC be the one to buy them out at a significantly higher valuation than the 2023 price.
Kisco and Kent Circle, meanwhile, argue in their complaint that the majority ownership group has been putting pressure on and diluting the team’s minority owners, citing “mismanagement and lack of transparency.”
According to Bourguet, the plaintiffs suspect Ishbia’s group of entering into undisclosed side deals and also raised questions about the funding of a practice facility for the WNBA’s Phoenix Mercury. As McCann writes, the complaint states that facility was “seemingly paid for using” team funds but that the minority stakeholders were “provided virtually no information” about how it was funded or the process used to determine its funding.
Attorneys for Suns Capital Group LLC will have the opportunity to respond to the complaint, McCann notes.