Congress is taking Assemblyman Richard Brodsky's report about the new Yankee Stadium's cooked books seriously. The charge is being led by Representative Dennis Kucinich (D-OH), who is chairman of the House's Domestic Policy subcommittee:
In an e-mail interview on Thursday, Kucinich said that "our factual findings could be the basis for a later agency or court finding of legal liability."
In the letter and interview, he cautioned that the I.R.S. could roll back the tax-exempt status of some or all of the stadium bonds. He also suggested that the I.R.S. could reject the Yankees' pending request for tax-free status on an additional $366 million in bonds to complete the financing of the stadium.
One wonders if such action by the I.R.S. could have a direct effect on team payroll in the coming years, thereby making the Yankees' proposed spending spree this winter one that severely handicaps their flexibility in subsequent offseasons. It seems a long shot, and I certainly wouldn't expect the Yankees to alter their behavior in the near term, but this bears watching.