The Chicago Sky lawsuit filed by minority investor Steven Rogers accuses principal owner Michael Alter of self-dealing, alleging he used a debt-to-equity conversion around a 2023 capital raise to expand his ownership stake and dilute other investors just as the WNBA franchise’s value climbed from a $10 million expansion fee in 2006 to an estimated $310 million by 2026.1Forbes. The WNBA’s Most Valuable Teams A second, unrelated suit filed by an Illinois taxpayer challenges the public financing behind the Sky’s new practice facility in Bedford Park.
What Rogers Alleges
Rogers, an original 2006 investor and a retired professor of entrepreneurship at Northwestern’s Kellogg School, filed his complaint on January 28, 2026, in Cook County Circuit Court through the Rogers Smith Partnership.2Front Office Sports. Chicago Sky Self-Dealing Lawsuit The complaint accuses Alter of breaching his fiduciary duty by “misallocating and misrepresenting franchise value for his own benefit” and running the team “as his private concern” without a board of directors or advisers.3Yahoo Sports. Chicago Sky Owner Michael Alter Lawsuit
At the center of the dispute is a debt-to-equity conversion. Over roughly two decades, Alter had personally loaned the Sky an estimated $20 million to $30 million to cover operating losses. Around the time of a 2023 capital raise, that debt was swapped for additional ownership stakes, expanding Alter’s control.4Chicago Sun-Times. Court Seals Complaint Against Sky Owner Michael Alter; Debt Conversion at Center of Lawsuit Rogers alleges the swap reduced minority investors’ percentage stakes, and that Alter told them their holdings had “dropped in nominal value, even as the team value had increased.”5Sports Illustrated. Lawsuit Raises Questions About Chicago Sky Ownership Practices
The complaint also alleges Alter “flouted the agreement’s basic requirements and minimal standards for business operations” as sole manager and “orchestrated a series of transactions to claim a significant portion of the Chicago Sky valuation gains for himself” after the team’s 2021 WNBA championship.3Yahoo Sports. Chicago Sky Owner Michael Alter Lawsuit
Why the Complaint Is Sealed
In February 2026, the court granted Rogers’ request to seal the complaint, citing confidentiality provisions in the team’s operating agreement and a nondisclosure agreement restricting public disclosure of the deal’s mechanics.4Chicago Sun-Times. Court Seals Complaint Against Sky Owner Michael Alter; Debt Conversion at Center of Lawsuit Alter’s counsel did not object. Rogers’ attorneys have since objected to the sealing of Alter’s unredacted motion to dismiss, arguing that documents forming the basis for a judicial decision should be publicly accessible.
How Other Investors Responded
Investor accounts diverge sharply. Linda Friedman, a lawyer who describes herself as likely the team’s third-largest investor and a member of the original 2006 group, publicly defended the transaction. She told the Chicago Sun-Times that investors received “complete disclosure,” that the valuation used for Alter’s loan conversion was fair, and that the 2023 capital raise of $8.5 million “would not have been possible without a transaction to improve the balance sheet.”4Chicago Sun-Times. Court Seals Complaint Against Sky Owner Michael Alter; Debt Conversion at Center of Lawsuit Friedman noted that Alter had personally absorbed roughly $30 million in losses over two decades to keep the franchise afloat.6Chicago Sun-Times. From Passion to Profit: Can the Sky’s Founding Mission Survive the League’s Success
Another early investor, speaking anonymously to the Sun-Times, said they had not known the loans were convertible and did not understand the valuation process used for the swap, adding that past suggestions to strengthen governance and oversight had been dismissed.4Chicago Sun-Times. Court Seals Complaint Against Sky Owner Michael Alter; Debt Conversion at Center of Lawsuit
Alter’s Motion to Dismiss
Alter’s attorney, Robert Chapman, filed a motion to dismiss in April 2026. The motion, largely redacted under the same confidentiality provisions, contends the debt-for-equity swap was “an expressly permitted transaction” under the operating agreement and did not involve preferential terms. Chapman wrote that “what Rogers mistakenly characterizes as wrongful self-dealing was an expressly permitted transaction that inured to the benefit of all shareholders, including Rogers.”7Chicago Sun-Times. Sky Minority Investors Rally Around Principal Owner Michael Alter
The motion makes three other arguments: that Rogers is an inadequate representative for a derivative suit because other investors oppose his claims, that the complaint improperly names Alter as an individual rather than in his capacity as LLC manager, and that the lawsuit improperly alleges breach of contract and breach of fiduciary duty at the same time.7Chicago Sun-Times. Sky Minority Investors Rally Around Principal Owner Michael Alter Chapman included declarations from 20 minority investors opposing the lawsuit and backing Alter’s leadership.
Rogers’ attorneys were ordered to submit written objections to the sealing by May 6, 2026, with Alter’s reply due May 21. No ruling on the motion has been reported.
The Bedford Park Practice Facility Suit
A separate case surfaced in April 2026, when Illinois taxpayer Tiauna Jackson sued the Village of Bedford Park in Cook County court over the public financing of the Sky’s new practice facility, branded “SKYTOWN.”8The Real Deal (Chicago). Lawsuit Adds Scrutiny to Alter’s Chicago Sky Practice Facility The 80,000-square-foot facility was nearing completion when the suit was filed.9Sports Business Journal. Chicago Sky’s Training Facility Approaches Completion With Increased Scale and Scope
According to the complaint, Bedford Park committed $32.8 million in public funds toward a project that grew from an initial estimate of about $38 million to a total cost of $60 million. Jackson alleges the deal is an illegal gift of public funds approved without the prior appropriations Illinois law requires. The complaint says the Sky pays nothing for rent, utilities, maintenance, or property taxes, retains all naming-rights and sponsorship revenue, and can terminate the agreement on 30 days’ notice.8The Real Deal (Chicago). Lawsuit Adds Scrutiny to Alter’s Chicago Sky Practice Facility
The suit also alleges the team sought interest-free public financing in 2024 because it was “having trouble getting a loan,” and that a $1.5 million payment owed by the Sky was late as of November 2025 and eventually covered by a personal check from Alter. Jackson asks the court to declare the contracts void. An initial hearing was scheduled for June 8, 2026, before Associate Cook County Judge Myron F. Mackoff.
Why the Money Matters Now
The valuations behind both cases have moved quickly. Alter paid a $10 million expansion fee for the Sky in 2006.5Sports Illustrated. Lawsuit Raises Questions About Chicago Sky Ownership Practices New investors bought in during 2023 at an $85 million valuation.10Chicago Sky (WNBA). Chicago Sky Add Owners, Including Laura Ricketts, at $85M Valuation Forbes put the franchise at roughly $240 million in late 2025 and $310 million in May 2026, a 29 percent year-over-year jump, with $30 million in revenue during the 2025 season.1Forbes. The WNBA’s Most Valuable Teams Rogers’ complaint frames the 2023 debt conversion as timed to capture that appreciation.
Where the Cases Stand
Both suits remain active in Cook County court. Rogers’ case is awaiting a ruling on Alter’s motion to dismiss, and Jackson’s SKYTOWN challenge is in its earliest stages, with the June 8 hearing as the next scheduled step reported in the record.