LADY AT THE BAT: On Which It Stands: Deflated Value?

Sunday, October 26, 2008

On Which It Stands: Deflated Value?

The Yankees are getting part of their financing for the new Stadium from tax-exempt government bonds. They've saved about $175 million in taxes so far and should save an additional $65 million with additional funding that was recently approved. A value had to be assessed on the land on which the new building is going up and, some in Congress are concerned that the Yankees de-valued the land in order to get a better tax break. A Congressional Committee held hearings on Friday to try to find out exactly what the story is. Take a look at this report from ESPN's "Outside The Lines:"

From a business stand-point, I don't have a problem with the Yankees going after tax-free bonds to help finance the new Stadium. Even from a non-business stand-point, I can sort of understand it. It bothers me as a financially struggling woman from the inner-city(Why can't I get a tax break?), but that's the way the cookie crumbles, as they used to say. However, it would be absolutely atrocious if they de-valued the land. Talk about greed. Talk about the rich getting richer.

Yankees brass testified on Capitol Hill Friday that they did not de-value the land. They'd better be telling the truth. If not, a little thing called perjury could reach up and bite them in the ass.


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