Mat Ishbia, the billionaire chief executive officer of United Wholesale Mortgage, is close to taking control of the National Basketball Association’s Phoenix Suns in a deal that would shatter the league’s record purchase price.
(Bloomberg) — Mat Ishbia, the billionaire chief executive officer of United Wholesale Mortgage, is close to taking control of the National Basketball Association’s Phoenix Suns in a deal that would shatter the league’s record purchase price.
The acquisition would value the team at about $4 billion, according to a person familiar with the matter, who asked not to be identified because the talks are private. The deal, which hasn’t been completed, would designate Ishbia’s brother and Shore Capital Managing Partner Justin Ishbia as alternate governor given his sizable investment, the person said.
The agreement is expected to include the WNBA’s Phoenix Mercury, according to ESPN, which earlier reported on Ishbia’s plans. The Mercury’s players include Brittney Griner, who was freed from a Russian prison this month.
If completed, the deal will mark a swift end to the tenure of current owner Robert Sarver, who said in September that he was starting to seek buyers for the teams as he faced pressure to step down after an NBA investigation found he used racist slurs and harassed female employees.
NBA Record
Ishbia’s purchase price would surpass the previous NBA record. Alibaba Group Holding Inc. co-founder Joe Tsai spent about $3.3 billion to buy the Brooklyn Nets and the Barclays Center in 2019.
It’s been a banner year for sports team sales. A group led by Rob Walton bought the National Football League’s Denver Broncos for $4.65 billion in June, the most ever paid for a US professional sports team. Todd Boehly led a consortium that purchased Chelsea FC of the English Premier League for £4.25 billion ($5.2 billion).
Ishbia, 42, is worth $5.6 billion, according to the Bloomberg Billionaires Index. His personal fortune has fallen about $1.7 billion this year.
Spartans Walk-On
He was a walk-on basketball player at Michigan State University under famed coach Tom Izzo. In 2021 he donated $32 million to his alma mater, which at the time was the school’s largest-ever one-time commitment from a single person.
Sarver selected Moelis & Co. to run a sale of the Phoenix franchises as criticism mounted from mega NBA stars including LeBron James and Chris Paul.
Representatives for Moelis & Co. and Shore Capital declined to comment. A spokesperson for United Wholesale Mortgage didn’t have an immediate comment, while the Phoenix Suns and Mercury didn’t immediately respond to requests for comment.
Basketball legend Earvin “Magic” Johnson, who also attended Michigan State, said on Twitter that he spoke with Ishbia.
“He’s going to do great things not only for the Suns organization, but for the entire league,” Johnson said. “All of the other 29 NBA teams better watch out because Mat’s a winner!”
–With assistance from Brandon Sapienza, Maxwell Adler and Gillian Tan.
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