The Ishbia brothers, who acquired control of the Phoenix Suns and the WNBA’s Phoenix Mercury last year, recently completed a nearly $400 million deal that increased their stake in the NBA team. This deal involved swapping stock in their family mortgage giant, UWM Holdings, for additional shares of the Suns, with Mat Ishbia being the largest shareholder of both the Suns and UWM. Mat negotiated the right to purchase more of the team at the original valuation from when he bought it in 2023 and has received significant interest at valuations of $5 billion or more.
Forbes estimated that the Ishbia brothers now own 66% of the Suns and the Phoenix Mercury, with their father, Jeff Ishbia, owning an additional 1%. The recent transactions with minority owners, including Sam Garvin, John Landon, Steve Hilton, and Tom Rogers, saw the Ishbias swap nearly $285 million of UWM stock for ownership stakes in the Suns-owning LLC. These transactions were part of an effort to increase UWM’s publicly traded shares from 6% to 10%.
Last year, the Ishbia brothers took over the Suns and Mercury, which were put up for sale by former owner Robert Sarver following an NBA investigation into his misconduct. Mat Ishbia serves as the Suns’ governor and owned an estimated 43% stake in the team before the recent transactions, while Justin Ishbia serves as alternate governor and owned an estimated 13% stake. The Ishbias now hold 90% of UWM’s stock after selling a 4% stake over the last two months.
The Ishbia brothers’ holding company cancelled a secondary offering of an additional 3% stake in UWM in November 2021 due to market conditions. Despite a recent class action lawsuit alleging improper practices by UWM, the company’s shares have risen 33% over the last year as mortgage interest rates have fallen. Mat Ishbia controls an estimated 75% of the family’s UWM shares, with Justin Ishbia owning approximately 23% and their father, Jeff Ishbia, owning around 2% of the company.
Overall, this latest deal between the Ishbia brothers and minority owners of the Suns has allowed Mat Ishbia to increase his ownership position in the team while also benefiting UWM by increasing its publicly traded shares. The Ishbias remain committed to both organizations and continue to explore opportunities for growth and investment in the future.
