Mat Ishbia, the billionaire CEO of United Wholesale Mortgage, announced Tuesday that he and his brother, Justin, had reached an agreement to purchase a majority share of the NBA’s Phoenix Suns and the WNBA’s Phoenix Mercury from disgraced owner Robert Sarver for $4 billion.
Per the terms of the agreement, which requires approval from the NBA’s Board of Governors, the Ishbia brothers will hold “more than 50 percent ownership in the franchise, including all of Sarver’s interest, and a portion of the interest of [existing] minority partners.” Mat Ishbia plans to be the franchise’s governor, while Justin Ishbia will be its alternate governor.
The agreement comes three months after Sarver, a real estate investor who purchased the Suns in 2004, started the process of selling the teams in the wake of an investigation commissioned by the NBA and conducted by the Wachtell, Lipton, Rosen & Katz law firm. Investigators concluded that Sarver repeatedly used racist and misogynistic language in the workplace, among other examples of misconduct.
Advertisement
“I am extremely excited to be the next Governor of the Phoenix Suns and Mercury,” Ishbia said in a statement. “Both teams have an incredibly dynamic fan base. ... I appreciate Robert Sarver’s time and support throughout the process. We are so honored to be, with approval by the NBA, the next stewards of the Phoenix Suns and Phoenix Mercury.”
Ishbia, a graduate of Michigan State, was a walk-on for the Spartans’ basketball team. The seldom-used guard was a member of Michigan State’s NCAA championship team in 2000. ESPN first reported that Ishbia had reached an agreement to purchase the Suns and Mercury.
After graduating from Michigan State’s business school in 2003, Ishbia joined United Wholesale Mortgage, which had been founded by his father. Ishbia became CEO in 2013, and the Michigan-based company, which became the country’s largest wholesale mortgage lender in 2015, has grown to nearly 7,000 employees.
Advertisement
Ishbia said Tuesday that “basketball is at the core of my life,” and he explained in a recent HBO feature how his corporate philosophy was shaped by Tom Izzo, Michigan State’s legendary coach.
“This is not that complicated,” he said. “Get the best people to join your team. Right? Just like in sports. Train them, coach them to be the best version of themselves, like Izzo used to do with us. And then treat them so well that they never want to leave.”
Before his agreement to purchase the Suns, Ishbia had pursued NFL ownership opportunities by unsuccessfully bidding for the Denver Broncos and saying in November he was weighing a bid for the Washington Commanders.
The $4 billion agreement is the highest for an NBA franchise transaction, surpassing the $2.35 billion that Joe Tsai paid for the Brooklyn Nets in 2019. Sarver purchased the Suns for $401 million.
Advertisement
In October, the Suns were valued at $2.7 billion by Forbes to rank 13th among the NBA’s 30 teams. Led by star guards Chris Paul and Devin Booker, Phoenix reached the 2021 NBA Finals and posted a franchise-record 64 wins last season. Though the Suns have never won a championship since joining the NBA in 1968, they have reached the Finals three times and have featured MVPs Charles Barkley (1993) and Steve Nash (2005 and 2006). Despite the uncertainty around its ownership group, Phoenix entered Tuesday’s game against the visiting Washington Wizards as the Western Conference’s No. 3 seed at 19-12.
“Mat is the right leader to build on franchise legacies of winning and community support,” Sarver said in a statement. “I know he shares my unwavering support for women’s basketball and I look forward to watching him become a unifying force across the Valley of the Sun.”
Before Sarver’s decision to sell, the NBA had suspended him for one year and fined him $10 million. However, Commissioner Adam Silver stopped short of issuing a lifetime ban — a punishment he had given former Los Angeles Clippers owner Donald Sterling, who was caught on tape making racist comments in 2014. Politicians, civil rights activists and prominent NBA stars, including LeBron James, argued that Sarver’s punishment was not severe enough. PayPal, a key sponsor, announced plans to end its partnership with the Suns.
Advertisement
After vigorously contesting a 2021 ESPN report that included many workplace misconduct allegations, the 61-year-old Sarver, a native of Arizona, relented amid mounting pressure in September, saying he didn’t want to be a “distraction” and that he “wants what’s best” for the Suns and Mercury.
“As a man of faith, I believe in atonement and the path to forgiveness. I expected that the commissioner’s one-year suspension would provide the time for me to focus, make amends and remove my personal controversy from the teams that I and so many fans love,” Sarver said. “But in our current unforgiving climate, it has become painfully clear that that is no longer possible — that whatever good I have done, or could still do, is outweighed by things I have said in the past.”
Silver said at the time that he “fully supported” Sarver’s decision and that it was “the right next step” for the Suns. New Orleans Pelicans guard CJ McCollum, president of the National Basketball Players Association, thanked Sarver “for making a swift decision that was in the best interest of our sports community.”
Mark Maske and Nicki Jhabvala contributed to this report.
ncG1vNJzZmivp6x7uK3SoaCnn6Sku7G70q1lnKedZMCxu9GtqmhqYGd%2FcH2RaGlpZ52WwW610qGZopldl8K6v4ypn6idnp7Fbr%2FUp6po