Kucinich investigates Yankee Stadium perks for NYC officials Nick Juliano

Published: Thursday August 7, 2008





Print This Email This Rep. Dennis Kucinich is opening an investigation into perks for New York City officials being offered as part of a deal to build a new stadium for the New York Yankees. Kucinich (D-OH) chairs a House Oversight subcommittee, and he has made similar inquiries regarding the New York Mets stadium, which offers similar perks for city officials. In its investigation of the deal between the Yankees and New York City for land on which the new stadium is to be built, Kucinich's Domestic Policy Subcommittee found that the lease allows city officials free use of a luxury box in the new stadium and priority rights to purchase up to 180 tickets per game. A letter Kucinich sent to the Yankees Thursday requests details on the perks. The subcommittee's investigations, which have been ongoing for more than a month, are examining whether the IRS can change its regulations and allow stadium projects such as the new Yankee Stadium to receive public-backed financing that comes with tax breaks. The Yankees are seeking an extra $350 million in public funds to build the new stadium. The team wants additional public support from the city's industrial development agency to be added to the $941 million in tax-exempt public bonds the organization already has issued for the $1.3 billion stadium. The stadium has been under construction since 2006 and is set to open next year. With wire reports Kucinich's letter is reprinted below: August 7, 2008 Mr. Randy Levine President New York Yankees Yankee Stadium New York, New York 10451 Dear Mr. Levine: The Domestic Policy Subcommittee of the House Oversight and Government Reform Committee has held two hearings[1] and issued a number of requests concerning the public financing of professional sports stadiums.[2] In conjunction with our specific investigation into the financing of the new Yankee Stadium, the Subcommittee has learned that pursuant to the lease agreement between the Yankees and the New York City Industrial Development Agency (NYCIDA), the City of New York, as assignee of the NYCIDA, is, among other rights, granted: (1) the right to use a luxury box for Yankee games in the new Yankee Stadium free of charge; and (2) priority rights for the purchase of up to 180 tickets for each Yankee home game.[3] I hereby request the following documents: (1) All documents relating to the lease provision, section 4.04, or any other agreement, draft or final, granting the NYCIDA or the City of New York any right to use or purchase any luxury boxes or tickets for any event at the new Yankee Stadium, including without limitation all documents relating to the origination of the concept, negotiation, execution, interpretation, and economic value of any such provision or agreement. The Oversight and Government Reform Committee is the principal oversight committee in the House of Representatives and has broad oversight jurisdiction as set forth in House Rule X. An attachment to this letter provides information on how to respond to the Subcommittees request. I request that you provide these documents as soon as possible, but in no case later than 5:00 p.m. on Monday, August 18, 2008. Sincerely, Dennis J. Kucinich Chairman Domestic Policy Subcommittee