Sky principal owner Michael Alter sued by early minority investor over ownership stake

Sky majority owner Michael Alter is being sued by one of his minority partners, Steven Rogers, an early investor in the team.

In layman’s terms, the suit alleges that Alter robbed minority owners of their stake in an asset that is exploding in value. In legalese, the complaint says Alter “breached his fiduciary duty to minority investors and unfairly deprived them of the value of their investments.”

Alter’s representatives called the allegations “meritless” in a statement provided to the Sun-Times.

“We look forward to defending our case through the appropriate legal channels and believe this matter will be disposed of quickly,” said Robert A. Chapman, counsel for Michael Alter and the Chicago Sky. “This matter will not affect the Sky’s operations. Because this is active litigation, neither Mr. Alter nor the Chicago Sky will be commenting further.”

The lawsuit, filed in the Circuit Court of Cook County, centers on a 2024 transaction in which Alter allegedly enriched himself through "opportunistic self-dealing" at the expense of minority investors.

The Sky's franchise valuation has soared in recent years alongside the exploding popularity of women's basketball. In 2023, when a group of investors that included Cubs owner Laura Ricketts bought in, the team was valued at roughly $85 million. Today, expansion teams pay $250 million to get in the door.

The lawsuit alleges that during this boom period, Alter used his control of the organization to unfairly dilute minority investor stakes and claim “a new outsized ownership for himself.”

Key details are redacted from the suit, making the mechanics unclear. But the plaintiff clearly claims a longstanding breakdown in governance and a “flouting” of the operating agreement. It also cites the absence of a board of governors as an example of the lack of checks on Alter.

An initial hearing will take place on Thursday, with the key hearing scheduled for March 30.

One thing to watch is whether other investors join in. For now, it’s notable that the lawsuit was brought by just one of the Sky’s minority partners, not a group.

It’s also worth noting that these types of ownership disputes are not uncommon in professional sports. Mercury owner Mat Ishbia — who also bought the Suns in 2023 — is being sued by Suns minority owners, who allege he uses the franchise as his “personal piggy bank.”

For the Sky, though, the franchise’s poor reputation means the lawsuit will carry greater weight. Star players from Elena Delle Donne to Kahleah Copper have consistently wanted out, citing mismanagement and underinvestment.

The lawsuit shows at least one owner feels the same way: “While the Chicago Sky basketball team has had some success on the court, as a business, Alter’s operation has been a mess. For years, [Alter] has run the Sky with blatant disregard for … the minimum standards of competence for business operations.”

Good management matters even more in today's WNBA, as billionaire-backed franchises in Phoenix, Las Vegas, New York and Golden State are surging ahead. Money has poured into facilities, coaching salaries and analytics, which all impact winning. Teams with smaller ownership groups, like the Sky, have not kept up.

The question hovering over the organization is whether the Sky can remain competitive without a sale. ESPN has reported player sentiment during CBA negotiations that owners who can’t keep pace with wealthier counterparts should consider selling their franchises.

But the Sky don't appear to be running for the exits. Last season, the organization touted a new practice facility in Bedford Park, a cybersecurity partnership and new athletic trainers as evidence of forward momentum.

The tone has remained celebratory this offseason. A fall ceremony marked the enclosure of the practice facility, even as it still lacked a roof and several walls. A winter launch event followed, celebrating Chicago hosting the 2026 All-Star weekend, despite labor negotiations threatening to delay the season.

So what’s happening behind the scenes with Sky ownership?

Alter has not spoken on the record in years. Co-owner Nadia Rawlinson most recently addressed the new practice facility, maintaining in September that it will open in time for training camp. Construction is still ongoing, but it's unclear whether the opening ceremony is on track for April.