The Chicago Sky lawsuit filed in January 2026 pits minority investor Steven Rogers against principal owner Michael Alter, with Rogers alleging that Alter engaged in self-dealing that diluted minority stakes as the WNBA franchise’s value climbed from a $10 million expansion fee in 2006 to roughly $310 million by 2026. A separate taxpayer suit, filed in April 2026, challenges the public financing behind the team’s new practice facility in Bedford Park. Both cases are pending in Cook County Circuit Court.
What Rogers Alleges
Rogers filed his complaint on January 28, 2026, through the Rogers Smith Partnership. He accuses Alter of breaching his fiduciary duty to minority investors by “misallocating and misrepresenting franchise value for his own benefit” and running the team “as his private concern” without appointing a board of directors or advisers.1Yahoo Sports. Chicago Sky Owner Michael Alter Lawsuit
The dispute centers on a debt-to-equity conversion carried out around the time of a 2023 capital raise. Over roughly two decades, Alter had loaned the franchise an estimated $20 million to $30 million to cover operating losses. In the conversion, that debt was swapped for additional ownership, expanding Alter’s control of the team.2Chicago Sun-Times. Court Seals Complaint Against Sky Owner Michael Alter; Debt Conversion at Center of Lawsuit Rogers alleges the transaction diluted minority investors’ percentage stakes and that Alter told them their holdings had “dropped in nominal value, even as the team value had increased.”3Sports Illustrated. Lawsuit Raises Questions About Chicago Sky Ownership Practices
The complaint further alleges Alter “flouted the agreement’s basic requirements and minimal standards for business operations” throughout his tenure 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 won its 2021 championship.1Yahoo Sports. Chicago Sky Owner Michael Alter Lawsuit
How Alter and Other Investors Have Responded
In April 2026, Alter’s attorney Robert Chapman filed a motion to dismiss. The motion argues the debt-for-equity swap was “an expressly permitted transaction” under the operating agreement, carrying no 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.”4Chicago Sun-Times. Sky Minority Investors Rally Around Principal Owner Michael Alter
The motion also contends Rogers is an inadequate representative for a derivative suit because other investors oppose his claims, that the complaint improperly names Alter in his individual capacity rather than as the LLC manager, and that it improperly alleges breach of contract and breach of fiduciary duty simultaneously.4Chicago Sun-Times. Sky Minority Investors Rally Around Principal Owner Michael Alter Alter’s filing included declarations from 20 minority investors opposing the lawsuit and supporting his leadership.
Linda Friedman, a lawyer who identifies herself as likely the team’s third-largest investor and a member of the original 2006 group, publicly defended the deal. 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.”2Chicago Sun-Times. Court Seals Complaint Against Sky Owner Michael Alter; Debt Conversion at Center of Lawsuit Friedman also noted that Alter had personally absorbed roughly $30 million in losses over two decades to keep the franchise alive.5Chicago Sun-Times. From Passion to Profit: Can the Sky’s Founding Mission Survive the League’s Success
Not every early investor agrees. One, speaking anonymously, told the Sun-Times they did not know the loans were convertible and did not understand the valuation process used for the swap, and said earlier suggestions to strengthen governance had been dismissed.2Chicago Sun-Times. Court Seals Complaint Against Sky Owner Michael Alter; Debt Conversion at Center of 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 that restrict public disclosure of the deal’s mechanics. Alter’s counsel did not object.2Chicago Sun-Times. Court Seals Complaint Against Sky Owner Michael Alter; Debt Conversion at Center of Lawsuit The motion to dismiss is largely redacted under the same provisions. Rogers’ attorneys have objected to the sealing of the unredacted motion, arguing documents forming the basis for a judicial decision should be publicly accessible. They were ordered to submit written objections by May 6, 2026, with Alter’s reply due May 21.4Chicago Sun-Times. Sky Minority Investors Rally Around Principal Owner Michael Alter
The Separate SKYTOWN Practice Facility Lawsuit
A different plaintiff is behind a different case. In April 2026, Illinois taxpayer Tiauna Jackson sued the Village of Bedford Park in Cook County court over the public financing of the Sky’s new 80,000-square-foot practice facility, branded “SKYTOWN.”6The Real Deal (Chicago). Lawsuit Adds Scrutiny to Alter’s Chicago Sky Practice Facility7Sports Business Journal. Chicago Sky’s Training Facility Approaches Completion With Increased Scale and Scope
The complaint says Bedford Park committed $32.8 million in public funds, roughly 72 percent of a $60 million project cost, and alleges the deal is an illegal gift of public funds approved without the prior appropriations required by Illinois law. Jackson alleges the Sky pays nothing for rent, utilities, maintenance, or property taxes, keeps all naming-rights and sponsorship revenue, and can terminate the agreement with 30 days’ notice. The suit also notes that early cost estimates of about $38 million rose to $60 million, that the team requested interest-free public financing in 2024 because it was “having trouble getting a loan,” and that a $1.5 million payment the Sky owed was late as of November 2025 and ultimately covered by a personal check from Alter.6The Real Deal (Chicago). Lawsuit Adds Scrutiny to Alter’s Chicago Sky Practice Facility Jackson wants the contracts declared void. An initial hearing was scheduled for June 8, 2026, before Associate Cook County Judge Myron F. Mackoff.
What Is at Stake Financially
The franchise’s climb explains the heat around the Rogers case. Alter paid a $10 million expansion fee in 2006.3Sports Illustrated. Lawsuit Raises Questions About Chicago Sky Ownership Practices By 2023, the team was valued at $85 million when new investors bought in, a group that included Chicago Cubs co-owner Laura Ricketts, Foot Locker CEO Mary Dillon, and former NBA star Dwyane Wade.8Chicago Sky (WNBA). Dwyane Wade Invests in WNBA’s Chicago Sky Forbes valued the franchise at approximately $240 million in late 2025 and $310 million in May 2026, a 29 percent year-over-year gain, with $30 million in revenue during the 2025 season.9Forbes. The WNBA’s Most Valuable Teams Rogers’ core contention is that Alter structured the 2023 transactions to capture a disproportionate share of that growth for himself.
Where the Cases Stand
Both suits remain active. The Rogers case awaits a ruling on Alter’s motion to dismiss, with the sealing dispute still being briefed as of mid-2026. The SKYTOWN challenge is in its earliest stages, with its first hearing set for June 2026. No ruling has been reported in either matter.