Michigan billionaire mortgage lender Mat Ishbia to purchase Phoenix Suns for record $4 billion

The Phoenix Suns have a buyer.

Billionaire mortgage lender Mat Ishbia has agreed to purchase the franchise and the WNBA's Phoenix Mercury from Robert Sarver, according to a statement released late Tuesday.

“I am extremely excited to be the next Governor of the Phoenix Suns and Mercury,” Ishbia said in the statement. “Both teams have an incredibly dynamic fan base and I have loved experiencing the energy of the Valley over the last few months.

“Basketball is at the core of my life, from my high school days as a player to the honor of playing for Coach (Tom) Izzo and winning a national title at Michigan State University. I’ve spent the last two decades building my mortgage business, United Wholesale Mortgage, into the number one mortgage lender in America and I’m confident that we can bring that same level of success to these great organizations on and off the floor.”

ESPN's Adrian Wojnarowski first reported Tuesday the deal was in the works. The Republic confirmed the report from a source close to the situation, who also heard it's a record deal for an NBA team. Joe Tsai purchased the Brooklyn Nets for $3.3 billion in 2019.

"I woke up from my nap and my phone was kind of going off," Suns head coach Monty Williams said after his pregame news conference on Tuesday before playing Washington at Footprint Center. "Probably had the same feelings you guys did, but for me, from an official standpoint, it has to be approved. Until then, I just don't want to make any comments on what could be."

The Suns are worth $2.7 billion, according to Forbes as of October 2022.

The NBA must approve the buyer and deal. Suns vice chairman Sam Garvin is the interim team governor.

Ishbia, 42, is worth $5.1 billion, according to Forbes. He owns United Wholesale Mortgage, the largest wholesale lender in the U.S. mortgage market, according to Bloomberg.

“The Pontiac, Michigan-based firm underwrites loans and provides closing documentation services, and became publicly traded in 2020. It reported revenue of $2.7 billion in 2021,'' according to Bloomberg.

From Birmingham, Mich., which is right outside of Detroit, Ishbia was a walk-on on Michigan State’s 2000 national team coached by Tom Izzo. Last year, he pledged $32 million to his alma mater for a major expansion of the Spartans’ athletics facilities that includes a new football facility and renaming the Breslin Center basketball court after Izzo.

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Suns All-Star Devin Booker was born in Grand Rapids, Mich., and grew up there with his mom until high school when he moved to Moss Point, Miss., to live with his dad and play at his dad’s high school.

While Williams didn't want to go too deep in talking about potential new ownership, he said having someone permanent in that role helps with making deals. The Suns have yet to move Jae Crowder since the two sides "mutually agreed" he wouldn't attend training camp.

"I'm sure when you finally get some direction on ownership, that allows for you to know who you're reporting to and that can allow for you to make more decisions going forward," Williams said. "It's pretty obvious we haven't done anything, along with other teams, but if you get someone in place, that probably makes it a little bit easier to make decisions."

Sarver announced his intention to sell the Suns and Mercury on Sept. 21, a week after he was suspended for one year from any activities involving both teams and fined $10 million for ''workplace misconduct and organizational deficiencies'' found during an NBA investigation.

"As a man of faith, I believe in atonement and the path to forgiveness," Sarver said in a statement. "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 purchased the team in 2004 from Jerry Colangelo for a then NBA-record $401 million.

"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," Sarver continued. "For those reasons, I am beginning the process of seeking buyers for the Suns and Mercury."

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The backlash of the investigation findings led to PayPal saying it wouldn’t renew its sponsorship with the Suns if Sarver still was involved with the team after his yearlong suspension ended.

Earlier this month, the Wall Street Journal reported Jack Selby and Jason Pressman submitted a $3 billion bid to buy the Suns and Mercury.

The report that Peter Thiel might provide financial backing — Selby is the managing director of Thiel Capital, an investment firm founded by Thiel based in West Hollywood, Calif. — created buzz as Thiel is linked to former U.S. President Donald Trump.

Now Ishbia has emerged as the one who will purchase the Suns for $4 billion.

Have opinion about current state of the Suns? Reach Suns Insider Duane Rankin at dmrankin@gannett.com or contact him at 480-787-1240. Follow him on Twitter at @DuaneRankin.

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This article originally appeared on Arizona Republic: Republic confirms report that Ishbia is finalizing deal to purchase Suns