waxpaperbeercup | chicago cubs blog

In today’s Tribune Ameet Sachdev and Oscar Avila have a great look into the financial struggles that are plaguing many of the rooftops across the street from Cubs Park.

But after Lakeview slipped into foreclosure this year, it is the numbers outlined in court filings that are particularly telling. They offer a rare glimpse into the shaky finances of a rooftop club operating in a bad economy.

In May, for example, Lakeview had an operating profit of $34,365. If the club was still making its $31,865 in monthly mortgage payments to the bank, that would have left just $2,500 after all expenses and fixed costs.

The situation isn’t exclusive to the Lakeview Baseball Club either. Many of the clubs are feeling the pinch.

Other rooftops are scrambling to feed their own multimillion-dollar mortgages as the recession leaves their corporate customer base gun-shy from spending $30,000 on an outing that revolves around watching the Cubs play. Throw in the Cubs’ dismal record, which depresses ticket demand, and several rooftops are now selling entire blocks of games on half-price online coupon sites such as Groupon.

The price war may be a temporary solution to fill seats, but it has stressed rooftop owners, especially those who took out major loans in the boom years to finances upgrades.

“There’s a lot of money going out and only some coming in,” said Rich Zasiebida, managing partner of the Skybox on Sheffield, 3627 N. Sheffield Ave. “People have got hefty mortgages. We’re busting our (hump) over here.”

So does this present an opportunity for Tom Ricketts? Many think it does including Alderman Tom Tunney:

The suddenly treacherous financial footing for some rooftops has generated talk that the new owners of the Cubs, the Ricketts family, have designs on investing in the clubs or even buying them out. The family’s investment in the 3621 N. Sheffield Ave. rooftop in May only fed the speculation. The family also had discussions with the owners of the Lakeview Baseball Club who were seeking investors after last season, but no deal was struck, sources said.

Ald. Thomas Tunney, 44th, who has been at the center of development plans by the Cubs and the rooftops since he took office in 2003, sees room for more cooperation between the Cubs and the rooftops.

Tunney said the family has expressed a vision of expanding its footprint beyond Wrigley, especially as it looks for revenue streams to recoup an investment that topped $800 million. He said the rooftop owners, meanwhile, seem more motivated to cooperate.

“We know the family is in it for the long haul,” he said. “There are a few people in rooftops that have deep pockets. Most of them do not.”

The rooftops could serve as luxury suites for Wrigley Field, whose 96-year-old structure is unable to fit more skyboxes. The current skyboxes in Wrigley also are dated, preventing the team from generating more revenue from an amenity that is critical for most major-league teams.

A closer working relationship with the Cubs would give rooftop owners a full-fledged partner to fill seats and ease fears of a clash when their agreement expires after the 2023 season.

“It’s a natural,” said James Lourgos, who co-owns the rooftop club at 3639 N. Sheffield Ave. “The rooftops give the team something they don’t have in the stadium. And the rooftop owners have always wanted security on their investment. When you invest $5 million on a facility, you want business certainty.”

Max Waisvisz, a partner in three rooftops, added: “I think (Tom) Ricketts is a smart guy, and he wants to get more involved in these (rooftop) businesses. He’s going to be a very powerful figure in the neighborhood in the next few years.”

Could this be an opportunity for Cubs? It sure seems like it would make alot of sense. It’s a shame the Cubs have not owned these building for years. But now may be a good time for them to start getting into that side of the business. The price might be right.