Billionaire brothers Mat and Justin Ishbia, who acquired control of the Phoenix Suns in 2023, recently completed a nearly $400 million deal to increase their stake in the NBA team. In a series of transactions with at least four of the team’s minority owners over the last two months, an entity controlled by the Ishbia brothers swapped stock in their family mortgage giant, UWM Holdings, for additional shares of the Suns. Mat Ishbia is the largest shareholder of both the Suns and UWM, with a spokesperson confirming that he has the right to purchase more of the team at the original valuation from when he bought it in 2023, and has no intention of selling any shares at this time. The Ishbia brothers acquired an estimated 56% of the Suns and Phoenix Mercury in 2023 in a deal valued at $4 billion, with Forbes estimating the brothers now own 66% of the teams after the recent transactions.
The transactions with minority owners, including Sam Garvin, John Landon, Steve Hilton, and Tom Rogers, involved swapping UWM stock for membership interests in the entity that owns the Suns and the Mercury. The Ishbias’ holding company also sold nearly $100 million of UWM stock on the open market in September to increase the public float of the company from 6% to 10%. Mat Ishbia, who serves as the Suns’ governor, and his brother Justin, who is the alternate governor, now hold 90% of UWM’s stock after selling a 4% stake in the business over the last two months. Their father, Jeff Ishbia, the founder of UWM’s predecessor, owns an estimated 2% of the UWM stock and sits on the company’s board.
Last year, the Ishbia brothers took control of the Suns and Mercury from Robert Sarver, who put the teams up for sale following an NBA investigation that found he had engaged in inappropriate behavior. Mat Ishbia, who is worth an estimated $10 billion, owned an estimated 43% stake in the Suns before the recent transactions, while Justin Ishbia, worth an estimated $5.1 billion, owned an estimated 13% stake. The Ishbias’ holding company cancelled a secondary offering of a 3% stake in UWM in November 2021 due to market reaction, but the company’s shares have since risen by 33% as mortgage interest rates fell. A class action lawsuit alleging improper practices by UWM was dismissed in federal court last month, with another ongoing lawsuit denied by the company.
The Ishbias’ spokesperson stated that Mat Ishbia’s objectives in the recent transactions were to increase his ownership position in the Suns and the Mercury, as well as to make more of UWM’s shares available on the public market to benefit the company. The spokesperson emphasized that increasing UWM’s public float was important for the organization and its investors, and stated that Mat has no plans to sell any shares of the teams at this time. With the increased stake in the Suns and growing interest in the teams, the Ishbia brothers are continuing to solidify their leadership in the organizations and explore opportunities for growth and success.
