The majority owner of the Phoenix Suns insisted Tuesday that a $250 million capital call—and a second funding round issued over the summer—were executed squarely within the team’s LLC agreement, pushing back against minority investors who allege the move was designed to squeeze them out.
The dispute, now unfolding in Delaware’s Chancery Court, pits Suns Legacy Holdings LLC against minority owners Kisco WC Sports II LLC and Kent Circle Investments LLC, who claim mismanagement has plagued the franchise since billionaire Mat Ishbia purchased his controlling stake in 2023.
Majority Owner Says Capital Call Followed the Rules
In a complaint refiled with fewer redactions, Suns Legacy accuses the minority partners of fabricating a governance crisis to force an “exorbitantly priced” buyout. The organization argues Kisco and Kent bristled at the June 2 capital call, leveled accusations of fiduciary misconduct, then demanded that Ishbia purchase their shares at a premium rather than pay their portion of injected capital.
When Ishbia declined, the minority owners launched a books-and-records action, then escalated the fight into a broader mismanagement suit. Suns Legacy claims the accusations were crafted to create chaos over the franchise’s financial health—both in the courtroom and, symbolically, “on the court.”
“Defendants seek to use the overhang of this contrived legal drama to force a buyout far beyond what the market will bear,” the team asserts. The Suns are now seeking a court declaration that the June capital call was issued properly and administered lawfully.
