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2008-10-18 09:57
by Cliff Corcoran
Note: The Bronx Banter blog has moved to bronxbanterblog.com.

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.

Comments
2008-10-18 11:06:30
1.   3rd gen yankee fan
0 Is your title a play on a certain Twilight Zone episode? Heh.
2008-10-18 11:18:41
2.   Eric Stephen
Genius title!
2008-10-18 12:57:42
3.   JL25and3
It's a cookbook!
2008-10-18 13:45:25
4.   tom yf
Great, great title. My favorite show of all time.
2008-10-18 14:21:39
5.   JL25and3
More seriously: I don't want to hear anyone say that the Yankees' finances are going to be affected by some terrible debt burden they're carrying. This "private financing" looks more and more like a free (or dirt-cheap) ride at taxpayer expense.
2008-10-18 15:36:50
6.   Cliff Corcoran
5 Oh, there's no doubt this is a publicly-financed stadium, but there's no way their finances won't be effected by not getting that $366 million or the tax exemptions. I'm not shedding a single tear for the Yankees. They'll get what's coming to them or they'll get away with a swindle, but if the former, it very well could effect their finances significantly.

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