Contact: Bettina Damiani 212.721.7996 or cell: 347.432.0315
Documents Just Released Show New York Yankees Entertaining at Taxpayers’ Expense
Tens of Thousands of Dollars in Receipts for Crystal Baseballs, Yankee Merchandise, Bar and Food, Expenses for Grounds Crew Submitted to the City as “Planning Expenses” for the Team’s New Stadium
Watchdog Group calls on Comptroller Thompson to Conduct Audit
New York, October 3, 2007 – As part of its ongoing investigation into taxpayer subsidies for the new Yankee Stadium, Good Jobs New York today revealed that the New York Yankees submitted lavish expenses for gifts and entertainment as “planning costs” for its new stadium. Copies of receipts, background on the project including updated subsidy figures and GJNY’s July 2007 report, “Insider Baseball” are available at www.goodjobsny.org.
Receipts and invoices recently disclosed pursuant to an April 2006 Freedom of Information Request to the New York City Department of Parks and Recreation show that no expense was too small to submit to the city ranging from crystal baseballs to bar tabs at Yankee Stadium during the 2005 post-season. GJNY has been notified that it will have access to 2006 planning costs receipts. However this raises concerns since the lease amendment only allowed deductions until 2005.
“Elected officials are turning a blind eye to the fact that the Yankees seem to have unfettered access to the public trough” said Bettina Damiani, GJNY’s project director. “These revelations are another insult in what we already know is a $795 million dollar gift to the most valuable sports franchise in America.”
In his waning days in office in 2001, Mayor Rudolph Giuliani authorized the Yankees to deduct up to $5 million per year of stadium planning costs for the next five years from their rent payments to the city. GJNY’s Insider Baseball report, analyzing expenditures for 2001, 2002, and 2004, uncovered more than $200,000 in such planning costs spent on high powered consultants who lobbied the city and state for subsidies and changes to the city’s land use policies. Not until recently did the Parks Department provide GJNY with documentation for 2003 and 2005 requested in our 2006 FOIL request.
While GJNY finds it questionable that the Yankees effectively billed taxpayers for these expenses, the work was done as part of its attempt to build a new stadium.
However, the following 2005 receipts were submitted to the Parks Department by the Yankees:
· $31,364 in food and bar tabs at Yankee Stadium for two nights of the 2005 post season
· Approximately $28,000 in novelties such as:
o $1,978 for a dozen crystal baseballs
o $8,600 in “rivalry” wool caps for home games against Boston and Toronto
o $1037 for 550 logo baseballs for an annual sales meeting
o $2,037 in gifts for corporate clients like Sony, Ford and Continental Airlines
· Other questionable expenses include:
o $25,000 for office space near Newark Airport
o $10,145 for press room rental
o $1,948 for party for Verizon
o $78 to ship batting helmets from Yankee Stadium to Tropicana Field
The Parks Department claims it is the responsibility of the Comptroller to verify if these 2005 items are legitimate planning expenses. The Comptroller’s office regularly audits the Yankees maintenance agreement with the city but has not conducted an audit of the planning expenses since its 2004 report examining planning costs from 2001 and 2002.
Considering the impact the new Yankee Stadium has had on the taxpayers and the neighborhood, Good Jobs New York calls on Comptroller William Thompson to bring up to date all audits of the team to ensure no improper expenditures were in fact borne by the taxpayers.
“Elected officials should have the needs of their constituents foremost in their minds, not the Yankees bank account,” said Damiani. “There’s no excuse for the city not having a clear, timely accounting of the rent due by the team.”
Editor’s note:
The New Yankee Stadium is being built on what was once 22 acres of heavily used parkland across the street from the current stadium. Despite claims by the Yankees and public officials that this $1.3 billion stadium is privately financed, the project will cost taxpayers approximately $795 million in tax free bonds, tax breaks and grants. The Yankees and local officials claimed broad community benefits including jobs for Bronx residents would be part of the project. However, no local officials have released any data to support this.
For more information about the public financing of this project, including the proposal still pending before the New York City Industrial Development Agency to provide $225 million in tax free financing for parking garages for the stadium, please visit: www.goodjobsny.org