The Chicago Sky’s recent legal battle is more than just a lawsuit—it’s a stark reminder of the WNBA’s tumultuous past and the challenges it continues to face. But here’s where it gets controversial: Majority owner Michael Alter is being sued by Steven Rogers, one of the team’s original investors, who claims Alter engaged in ‘self-dealing’ that devalued minority stakes in the franchise. This isn’t just a financial dispute; it’s a story that uncovers deeper issues within the league’s history and its ongoing struggle for stability.
Filed on January 28 in Cook County circuit court, Rogers’ lawsuit alleges that Alter’s actions undermined the value of minority investors’ shares in the WNBA club. While Rogers—acting through the Rogers Smith Partnership—remains the only minority investor publicly accusing Alter of financial mismanagement, the case has reignited discussions about the league’s painful financial history. Between 2002 and 2009, nine WNBA franchises folded or relocated, painting a grim picture of the league’s early struggles.
Alter founded the Chicago Sky in 2005, rallying a group of Chicago-area investors, including notable figures like singer Michelle Williams, Michael Jordan’s ex-wife Juanita Vanoy Jordan, and local businesspeople Margaret Stender, Sue Wellington, Linda Friedman, and Rogers. Together, they paid a $10 million expansion fee under the umbrella of Chicago Women’s Basketball Investment LLC, with Alter as the lead investor. However, one original investor told Front Office Sports (FOS) that the investment was never about financial returns. ‘The league was failing,’ they said. ‘It was more of a civic duty.’
And this is the part most people miss: Despite Alter reportedly investing tens of millions to keep the team afloat over two decades, the financial strain on the league made it nearly impossible to attract outside capital. Multiple sources, including investors with access to the team’s financial records, confirmed to FOS that while some original investors contributed additional funds, many were not obligated to do so.
Alter’s lawyer, Robert A. Chapman, dismissed the lawsuit as ‘completely meritless,’ stating, ‘We look forward to defending our case through the appropriate legal channels.’ Yet, the allegations have sparked debates about transparency and fairness in team management, especially as the WNBA’s financial landscape has begun to shift.
In 2023, Alter successfully raised new capital, selling a 10% stake in the team at an $85 million valuation. This move brought in high-profile investors like Cubs co-owner Laura Ricketts, Foot Locker CEO Mary Dillon, and NBA champion Dwyane Wade. However, Rogers claims that Alter ‘orchestrated a series of transactions’ to benefit himself at the expense of minority investors. The lawsuit alleges that Alter violated his fiduciary duty, though specific details remain unclear due to redactions in the filing.
Here’s where it gets even more contentious: Some investors believe Alter’s conversion of debt into equity—a move that expanded his ownership control—was properly communicated. Others, like Rogers, argue they were unaware of the convertible security until the 2023 capital raise. This discrepancy raises questions about trust and communication within the investor group.
The WNBA’s own financial trajectory adds another layer of complexity. In 2022, the league sold a 16% stake for $75 million, a deal that now appears undervalued given the league’s growing success. Ticket sales surged after the Sky’s 2021 championship win, and the easing of pandemic restrictions boosted revenue across the board. Yet, uncertainty remains about the sustainability of these gains.
Beyond the legal drama, the Sky’s operational challenges have been a point of contention. Players like Sylvia Fowles and Elena Delle Donne sought trades out of Chicago, citing issues with the franchise’s environment. In 2023, the team saw a mass exodus of its championship-winning roster, with stars like Candace Parker and Courtney Vandersloot leaving in free agency. Even coach James Wade departed mid-season for an NBA assistant role. Most recently, Kahleah Copper, the last remaining starter from the 2021 title team, requested a trade in 2024, stating, ‘When you experience [a professional environment], it alleviates pressure and problems other places.’
Critics argue that Alter’s frugal approach to infrastructure spending—despite the 2021 championship—has left the team struggling to compete with billionaire-backed franchises. The Sky’s planned practice facility near Midway Airport, announced in 2024, is a step forward but comes with delays and financial dependencies on the village of Bedford Park.
So, here’s the big question: Is this lawsuit a symptom of deeper systemic issues within the WNBA, or is it an isolated case of mismanagement? As the league continues to grow, how can it ensure fairness and transparency for all stakeholders? Let us know your thoughts in the comments—this is a conversation that’s far from over.
