Chicago Sky Owner Sued by Minority Partner Over Alleged 'Self-Dealing'

Lawsuit claims majority owner Michael Alter misrepresented franchise value to boost his own shares.

Jan. 31, 2026 at 4:15pm

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A minority partner in the Chicago Sky basketball team is suing majority owner Michael Alter, alleging he violated his fiduciary duty to investors by misallocating and misrepresenting franchise value for his own benefit. The lawsuit claims Alter abused his financial control to 'self-deal' stakes to increase his own shares while decreasing those of minority partners.

Why it matters

The case highlights tensions between majority and minority owners in professional sports franchises, where disputes over valuation and control can arise as team values rapidly increase. It also raises questions about transparency and governance in privately-held sports teams.

The details

According to the lawsuit, Alter 'orchestrated a series of transactions' after the Sky won their first WNBA championship in 2021 to 'claim a significant portion of the Chicago Sky valuation gains' for himself. The suit alleges Alter used his position as sole manager to 'seize' over $10 million in team value 'at the expense of other investors.' It claims Alter declined to appoint a board of directors or advisers and has run the team 'as his private concern.'

  • In September 2022, the lawsuit alleges Alter claimed the stakes of minority investors had 'dropped in nominal value, even as the team value had increased.'
  • In December 2025, Forbes valued the Chicago Sky at $240 million, seventh among WNBA franchises and 12th among women's sports teams worldwide.

The players

Michael Alter

The majority owner of the Chicago Sky basketball team, who is being sued by a minority partner for allegedly misrepresenting franchise value and 'self-dealing' to boost his own shares.

Steven Rogers

A minority owner of the Chicago Sky and an Englewood native and entrepreneur who was an early investor in the team.

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What they’re saying

“Alter's actions breached his fiduciary duty to the minority investors … and unfairly deprived them of the value of their investments.”

— Steven Rogers, Minority Owner, Chicago Sky (Chicago Tribune)

What’s next

An initial hearing in the lawsuit is scheduled for Thursday.

The takeaway

This case highlights the challenges of balancing majority and minority ownership interests in professional sports franchises, where disputes over valuation and control can arise as team values rapidly increase. It raises questions about transparency and governance in privately-held sports teams.