September 18, 2008
Did NYC break law in Yanks deal?
As promised, I've had more time to dig into New York Assemblymember Richard Brodsky's report on the New York Yankees deal, and come up with a few previously unnoticed tidbits:
- Brodsky estimates the current total public subsidy at "between $585 million and $826 million," whereas I have it at $833 million. He doesn't include a couple hundred million in tax breaks, though; he also screws up the math in at least one place, mixing up cumulative value of future bond payments with present value, which is like adding up all your future mortgage payments and calling it the value of your house.
- To the question of how the city gave the state and the IRS two very different values for the land under the new stadium, Brodsky has the answer: They did two separate appraisals. And didn't tell either party that they'd done a different appraisal for the other. Brodsky's research implies that the low valuation is probably correct, meaning the figure the IRS used to okay the Yanks' bizarro stadium bond financing may well have been fraudulent, making the bonds illegal.
- Brodsky uncovered a city document claiming that only 15 new permanent jobs would be created by the new stadium (as against the "thousands" promised by the Yankees and the city). Other city documents show other figures, though, so all this really proves is where the city comes up with its job creation figures.
Brodsky concludes that the city "may have violated the law" in the Yankees deal, but if things go as usual in these cases, that and two dollars will get you Lehman Brothers. For more details, see my brand-spanking-new article on the Village Voice website.
And finally, adding insult to injury, an excellent analysis of the new Yankees stadium design by Bronx Banter's Cliff Corcoran concludes that "what they've really done is take affordable seats away from the common fan who can only afford to sit in the upper deck or bleachers of the current Stadium and relocated them to parts of the ballpark only the wealthy can afford," while New York magazine points out that some of the "improved sightlines" at the Yanks' new home will look directly into the side of a restaurant. On the bright side, that's still better than watching the Yanks these days.
Throw NYC in jail!
Posted by: undrafted on September 18, 2008 05:19 PM
