Mat Ishbia’s $4 Billion Suns-Mercury Ownership Next in Jeopardy Stuns Fans – “What a Wonderful Era Adam Silver Has Ushered In”

Mat Ishbia bought the Phoenix Suns and Mercury in a combined deal worth $4 billion back in December 2022.

Mat Ishbia’s $4 Billion Suns-Mercury Ownership Next in Jeopardy Stuns Fans – “What a Wonderful Era Adam Silver Has Ushered In”

Suns and Mercury owner Mat Ishbia (Image via NBA Central/X)

The NBA is in a bit of a mess currently. Apart from the salary cap circumvention scandal involving Steve Ballmer, his Los Angeles Clippers, and Kawhi Leonard, the league is now dealing with the fallout of Mark Walter selling the Los Angeles Lakers. In the midst of this, Mat Ishbia and his Phoenix Suns have come into the picture.

The 46-year-old paid $4 billion to purchase the Suns and its WNBA sister team, the Mercury, back in December 2022. Since then, he has tried to turn both into championship contenders.

That goal fell short, at least on the Suns’ part, and forced Mat Ishbia to change course and try a different plan that does not involve signing expensive veteran superstars.

The Mercury may be experiencing a down year after reaching the WNBA Finals last season. But the recent addition of Kelsey Plum has brought back hope that, with her addition, the team should be a force next campaign.

But the news that engulfed both teams has nothing to do with basketball. In fact, it is about Ishbia’s mortgage company, UWM Holdings Corp, which lost $600 million in a failed takeover bid and a mistimed bet on interest rates.

This news piqued everyone’s interest, and journalist Joe Pompliano dug into it. He figured out that Mat Ishbia took two loans from JPMorgan to complete the $4 billion purchase.

However, those loans hold UWM shares as collateral, which are down by 70% since he bought the two teams. This throws up questions about whether the Michigan native will be forced to sell the teams to repay JPMorgan’s loans.

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Fans lose their minds after learning about Mat Ishbia’s struggles

It so happens that this situation sounds eerily similar to why Mark Walter had to sell the Lakers in such a short span. The federal government is investigating alleged fraud that may require him to repay the $21 billion in loans he is short on.

Fans felt that even though Mat Ishbia is not facing a similar problem, knowing that his business downturn could force him into selling the Phoenix Suns and Mercury left them baffled.

They questioned why Adam Silver allowed these owners to purchase teams, knowing they do not have the money to do so. Fans believe that it is time for eccentric owners who have their own cash to return to the fold. Check out examples of those reactions below.

The NBA once was dominated by flamboyant businessmen who had all the wealth needed to own and run sports franchises. Nowadays, the influx of investment funds or financial firms like Mat Ishbia’s, using public money to buy teams, has changed the way teams operate. Coupled with these financial problems, fans believe that it has taken the fun out of the game.

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Mat Ishbia set to buy out Suns-Mercury minority owners

While this collateral problem might be a major red flag, Joe Pompliano also noted in his Substack article that Mat Ishbia has already amassed enough wealth to pay off the mortgages on his own. Moreover, the MSU alum is about to increase his stranglehold on his two teams.

Mat Ishbia buying out minority owners
Mat Ishbia buying out minority owners (Image via Joe Pompliano/X)

Mat is finalizing an agreement to buy out the remaining Suns and Mercury shareholders, bringing the Ishbia family’s total ownership to almost 99% of the teams.

UWM’s statement to Bloomberg

This means that not only is he going to buy out the remaining minority owners with his own money, but Mat Ishbia is also doubling down on his investment in both the Suns and Mercury. Therefore, this might not be as major a problem as what Mark Walter faced.

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