Reference no: EM133669259
Question: You are a member of the Board of Directors of Chicago National League Baseball, Inc., a Delaware corporation which owns and operates Wrigley Field, a baseball stadium, and the Chicago Cubs professional baseball team. Wrigley Field at this time is the only major league stadium without lights, which means that all games must be played during the day, a fact that means many working people cannot attend games on weekdays. The team's majority shareholder, Philip Wrigley (who had personally selected you and each member of the Board) is an extremely wealthy man had always opposed lights because he personally believed that "baseball is a daytime sport" and he believed that having more traffic in the neighborhood in the evenings would change the low-key nature of the neighborhood. He has always stated that he was not in baseball "simply to make money" but that he was a "trustee for the fans."
Jonah is a minority shareholder of the corporation; Wrigley gave him some shares many years earlier, and Jonah very much wanted the Cubs to make money. Jonah made a demand on the Board to have modern lighting installed at Wrigley Field. He produced evidence that a majority of area residents, including business owners, would like the increased business and spending that would occur during night games; that for every other pro baseball team the night attendance is greater than day attendance; and that it was difficult to get pitchers to want to pitch for the Cubs given the fact that batters have an advantage in daylight. Expert accountants had prepared estimates showing that the Cubs would make more profit if lights were installed, and that Wrigley Field would become more valuable if business grew around it to take advantage of night baseball.
In a short speech to the Board, Mr. Wrigley replied that while pitchers disliked daylight games, batters loved them, which meant that things evened out; that Wrigley Field is unique and therefore comparisons to the profitability of other stadiums is largely irrelevant; and Wrigley preferred the low-key residential of the neighborhood and did not want to see the stadium surrounded by restaurants, nightclubs, bars, and other "sleazy" businesses.
Using the IRAC method, you are to vote on whether or not to install lights at Wrigley Field.
Keeping in mind that If you do not, Jonah and other disgruntled minority shareholders will sue. If you do, of course, Mr. Wrigley will likely not reappoint you to the Board.
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