NBA owners voted 29-0 last week to approve the sale of the Phoenix Suns to United Wholesale Mortgage (UWM) CEO Mat Ishbia and his brother.
The league, which has 30 teams, did not vote unanimously, as Cleveland Cavaliers owner Dan Gilbert abstained from the vote. Gilbert is also the owner and Chairman of Rocket Co., which has been in a contentious business rivalry with UWM for years.
This purchase by Ishbia will allow the two companies and their owners to take the business rivalry head-to-head on the basketball court. Gilbert does seem to be on a slightly stronger footing in this arena, as the Cavs have won both of the last two matchups between the two teams.
In their ever-evolving business rivalry, Rocket has again taken a swipe at UWM with its new “bully shield.” The initiative is directed at brokers interested in getting out of UWM’s “ultimatum” contract.
The “ultimatum” contract refers to an announcement from Ishbia in 2021 that UWM would no longer work with brokers or other professionals that conducted business with two of UWM’s largest competitors, Rocket and Fairway. UWM used contract terms to enforce this policy.
The “bully shield” offers brokers financial assistance to cover penalties and court costs associated with violating those terms.
“In my opinion, the ultimatum is immoral,” Mike Fawaz, executive vice president of Rocket Pro TPO, said. “We believe UWM’s ultimatum was one of the worst things to happen to independent mortgage bankers in 50 years. The ultimatum uses lawyers and contracts to limit choice and optionality.”
UWM has not hesitated to bring suits against companies it believed violated the terms of these contracts.