Lawsuit Raises Questions About Sky Ownership Practices

The Tribune also reported that the lawsuit claims "Alter's actions breached his fiduciary duty to the minority investors...and unfairly deprived them of the value of their investments."

The Tribune noted that the lawsuit alleges Alter told minority investors that their stakes had "dropped in nominal value, even as the team value had increased" — a point central to the dispute and one that arrives amid unprecedented growth in the WNBA franchise valuations.

An initial hearing in the case is scheduled for Feb. 5.

A Franchise Valuation That Has Soared

The timing of the lawsuit is notable. Michael Alter purchased the Chicago Sky in 2006 for the league's then-standard-expansion fee of $10 million. According to Forbes, the franchise was valued at approximately $240 million in 2025 — up sharply from the $85 million reported in 2023. That rapid appreciation mirrors a league-wide surge fueled by increased media rights, sponsorships, and public investment in women's sports.

For minority stakeholders, valuation growth typically represents unrealized gains that become meaningful when equity stakes are reassessed, sold or distributed. The lawsuit argues that this process did not occur equitably.

Governance Questions Beyond the Courtroom

While many details of the case remain sealed or redacted, the dispute has drawn attention to broader questions about governance within WNBA franchises — particularly those experiencing sudden increases in value. As teams transition from long-term stability plays into high-value assets, ownership structures that once drew little attention are now facing closer examination.

Infastructure and Investment Concerns

The lawsuit also arrives as the Sky continues to face scrutiny over its infrastructure. According to the Chicago Sun-Times, the inside of the facility is still in flux despite the Chicago Sky ownership holding a ceremony. As the calculation of various teams' valuations is on a continued rise, the lack of dedicated training facilities still looms as an issue for players.

While the lawsuit focuses on the misappropriation of funds, it doesn't go unnoticed that the team has a lack of resources for its players. For critics, the rise in franchise valuations is directly tied to the resources some teams can provide for the players.

What Comes Next

At this stage, Alter has not been found liable for any wrongdoing, and the claims outlined in the lawsuit remain unproven. A forthcoming hearing is expected to shed more light on how the case will move forward.

For the Chicago Sky, the situation places an off-court spotlight on an organization long recognized for its community presence. As the WNBA enters a new era defined by rapid financial growth, cases like this underscore the increasing stakes — not just for players and fans, but for investors navigating a changing economic landscape.

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