UWMC - United Wholesale Mortgage CEO Ishbia signs deal to buy majority stake in Phoenix Suns

United Wholesale Mortgage ( NYSE: UWMC ) CEO Mat Ishbia agreed to a deal late on Tuesday to buy the majority stake in the NBA's Phoenix Suns and the WNBA's Phoenix Mercury, forking over a record sum of $4B in the process.

In a press release, current owner Robert Sarver said the billionaire Ishbid was "the right leader to build on franchise legacies of winning and community support and shepherd the Suns and Mercury into the next era."

Ishbia is well known around the NBA and is seen as well-regarded within the NBA, including by Commissioner Adam Silver, ESPN reported . The 42-year-old Ishbia, who has a reported net worth of $5.26B, will need to undergo a background check and receive a vote of approval from the NBA's board of governors, but is expected to pass both with ease, ESPN added.

In the statement, Mat, who took over as United Wholesale Mortgage ( UWMC ) CEO from his father, said he was "extremely excited to be the next Governor of the Phoenix Suns and Mercury," adding that he has "loved experiencing the energy of the Valley over the last few months."

In taking over the majority of the Suns, he will acquire all of Sarver's stake and a portion of minority owners.

NBA teams have continued to increase in value in recent years. In 2014, former Microsoft ( MSFT ) CEO Steve Ballmer bought the Los Angeles Clippers for $2B, while the Houston Rockets were sold for $2.2B to gaming magnate Tilman Fertitta in 2017.

Two years later, in 2019, the Brooklyn Nets were sold to Alibaba ( BABA ) co-founder and Executive Chairman Joe Tsai.

Sarver purchased the Suns in 2004 for a then-record price of $401M.

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