AP source: Ishbia agrees to buy Suns, Mercury for $4 billion

Mortgage executive Mat Ishbia has agreed in principle to buy the Phoenix Suns and Phoenix Mercury from the embattled owner Robert Sarver for $4 billion, a person with knowledge of the negotiations told The Associated Press on Tuesday.

It is the first step in a process that is expected to take several weeks to complete, according to the person, who spoke to the AP on condition of anonymity because neither Ishbia nor the Suns had disclosed the agreement publicly.

ESPN first reported the agreement between Sarver and Ishbia — who is chairman, president and chief executive of United Wholesale Mortgage, which bills itself as the nation’s top overall mortgage lender. Forbes recently listed Ishbia’s net worth at $5.1 billion.

Ishbia, a former Michigan State player and a member of the Spartans' NCAA championship team in 2000, will now be subject to a vetting process by the NBA. Once that process is completed, the NBA's board of governors will have to approve the sale. The board isn't scheduled to meet again until March, though it could convene virtually if the vetting process is successfully completed beforehand.

If the sale closes at $4 billion, it would be the largest purchase in NBA history. Joe Tsai bought the Brooklyn Nets and Barclays Center for $3.3 billion in 2019, and Tilman Fertitta purchased the Houston Rockets for $2.2 billion in 2017.

The only other NBA franchise known to be sold for $2 billion or more was the Los Angeles Clippers, when Steve Ballmer acquired that team in 2014.

“I had a great call with fellow Spartan Mat Ishbia congratulating him on his purchase of the Phoenix Suns," Magic Johnson, another Michigan State alum tweeted Tuesday. “He’s going to do great things not only for the Suns organization, but for the entire league. All of the other 29 NBA...