Case: 1:15-cv-00551 Document 39 Filed: 02/27/15 Page 1 of 4 PageID #:1385 IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION RIGHT FIELD ROOFTOPS, LLC, d/b/a SKYBOX ON RIGHT FIELD PROPERTIES, 3633 ROOFTOP MANAGEMENT, LLC, d/b/a LAKEVIEW BASEBALL and ROOF TOP ACQUISITION, LLC, Case No. 15cv551 Plaintiffs, Hon. Virginia M. Kendall . v. Magistrate Judge Michael T. Mason CHICAGO BASEBALL HOLDINGS, CHICAGO CUBS BASEBALL CLUB, WRIGLEY FIELD HOLDINGS, and THOMAS S. RICKETTS, Defendants. DECLARATION OF CHRIS BUE l. I have personal knowledge of the contents of this Declaration, and if called I am competent to testify on the matters set forth herein. 2. I have a Master of Business Administration from the University of Minnesota Carlson School of Management. 3. I am engaged as an independent contractor to provide management consulting, bookkeeping, and other professional services typically associated with that of a controller, to Right Field Rooftops, LLC d/b/a Skybox on Shef?eld (?Skybox?), and 3633 Rooftop Management, LLC d/b/a Lakeview Baseball Club (?Lakeview?). 4. i In that capacity, I am familiar with the books, records and other ?nancial aspects of both Skybox and Lakeview. Case: 1:15-cv-00551 Document 39 Filed: 02/27/15 Page 2 of 4 PageID #:1386 5. Skybox and Lakeview both utilize a computer software package known as QuickBooks to maintain their ?nancial records. I am responsible for inputting all ?nancial data into QuickBooks for Skybox and Lakeview. 6. Attached hereto as Exhibit 1 is a true and correct copy of Skybox?s Pro?t and Loss Statement for January through December,'2014. The information in Exhibit I truly and accurately re?ects Skybox?s ?nances as set forth therein. 7. - Skybox?s only signi?cant source of revenue is derived from the sale of ?tickets? (and the collection of amusement taxes associated therewith) to watch live cubs games, concerts and other events as they take place inside Wrigley Field, from the bleachers constructed on Skybox?s rooftop. This revenue is identi?ed as ?Ticket Sales? and ?Concert Ticket Sales? on the ?rst page of Exhibit 1. -8. I The ?Cost of Goods Sold? section of Exhibit l'relates primarily to expenses associated with operating the roOftop business during events for which tickets were sold. Therefore, if Skybox is no longer operating as a rooftop business, most of the Cost of Goods Sold costs will be eliminated. 9. Skybox does, however, have certain ?xed costs which are not dependent upon whether rooftop events are taking place. 10. I One example of such ?xed costs that are not dependent on rooftop activity is in the line item called ?Rent? on page 2 of Exhibit 1. 11. The ?Rent? line item consists of three separate expenses: a ?xed ?rst mortgage payment in the amount of $17,477.97; (ii) a ?xed second mortgage payment in the amount of $35,000.00; and real estate taxes. This is an annualized amount of $651,286.10 or an average of $54,273.84 per month inclusive of real estate taxes. January and Case: 1:15-cv-00551 Document 39 Filed: 02/27/15 Page 3 of 4 PageID #:1387 August, 2014 ?Rent? payments were atypical because the second. mortgage was paid either the preceding or following month. 12. As of February 26, 2015, Skybox?s ?rst mortgage loan balance was $2,813,251.19. As of February 1, 2015, Skybox?s second mortgage loan balance was $3,050,000.00. 13. As ofFebruary 25, 2015, Skybox had $141,030.57 cash on-hand. 14. As Iof February 26, 2015, Skybox had $162,918.31 in accounts payable. 15'. If the proposed right ?eld video board is installed at Wrigley Field, Skybox will have no revenue, and will be unable to pay its ?xed mortgage and real estate expenses immediately thereafter. 16. If the proposed right ?eld video board is installed at Wrigley Field, Skybox will be insolvent in that it will be unable to pay debts as they become due in the ordinary course of business. 17. Attached hereto as Exhibit 2 is a true and correct copy of Lakeview?s Pro?t and Loss Statement for January through December, 2014. The information in Exhibit 2 truly and accurately re?ects Lakeview?s ?nances as set forth therein. 18. Lakeview?s only signi?cant source of revenue is derived from the sale of ?tickets? (and the collection of amusement taxes associated therewith) to watch live cubs games, concerts and other events as they take place inside Wrigley Field, from the bleachers constructed on Lakeview?s rooftop. This revenue is identi?ed as ?Ticket Sales? and ?Concert Ticket Sales? on the ?rst page of Exhibit 2. 19. The ?Cost of Goods Sold? section of Exhibit 2 relates primarily to expenses associated with operating the rooftop business during events for which tickets were sold. Case: 1:15-cv-00551 Document 39 Filed: 02/27/15 Page 4 of 4 PageID #:1388 Therefore, if 'Lakeview is no. Innger operating. as a waft-op business, mos-t uf'the Cast; of Gunilla Said costs will be eliminated. 2-9. Lake-view dues, howeven have certain ?xed costs which are not dependent upnn whether moftop wants are talng place. 21. One example of such- ?xed. costs that are 110$ degendent on mo?ep- activity is. in the line item called. ?chf??_an page 2. efE-xhi?it. 2.. I 22. The ?Rent? line consists of 1M) separate: expenses: a ?xed mortgage; paymentin the mount 0f. and (ii) estate tax-es. This is an annualize-ci ameth or an aver-age (if $20,376.25 per inclusive of real Ema-{e taxes. The Febmaxy, 2614 ?Rent? payment was atypical because that mortgage payment was made the. following month. I 23* As of February 26,. 2-015, Lakwiew?s mozlgage- lean balanw was 24.. As e'fl'Febmary 25, 20.15., Lakevi?ew had $49,307.78 sash tan-hand. .25. As of February 26, 2-015, Skyhox had $144,062,12 in accent-Its 'pafablel 26. If the prnosed light. '?eleai Vida-3 board. is installed at Wrigley Field, .Lalceview will have no revenue, and. will be unable to pay its ?xed martgage and real estate expenses immediately thereafter. I I 27. If the proposed right? ?eld video board is in?taliecsi at Wrigley Field, Lakcvic'w will be insolvent in that it. will. be. unable ta pay debts as they became. in the ordinary mums m? bushless. I, Bue, declare under p?nalty of perjury that the fer-ageing is {me and cg?ect.