City: SI Yanks owe $300K in paymentsBy
According to the New York City Comptroller’s Office and the Economic Development Corporation, the Staten Island Yankees, New York-Penn League affiliates of the Bronx club and owned by the Yanks, owe the city $300,000 in back-rent, unreported attendance totals and improper deductions. The team does not agree, and the SI Yanks plan to bring the issue to an arbitration hearing.
The finer points of the dispute are rather arcane, but Comptroller John Liu lays them out in a press release which accompanies his office’s audit report (PDF). In essence, the terms of the lease deal between the SI Yankees and the EDC make rent payment levels contingent upon game attendance figures, and the team must pay a fee for each now-show complimentary ticket it issues over the course of the season. The team, says Liu’s office, underreported attendance totals for the 2009 season and now owes the city $118,366 in rent and $39,140 in no-show and complimentary ticket fees. Separately, the team took unallowable deductions in calculating money owed to the city through its net-signage revenue provisions and now must pony up $151,058. The EDC, leaseholders of the stadium in Richmond County, say the team owes back-rent and ticket fee payments only but not the net-signage revenue.
To rectify these deficiencies, the Comptroller’s Office has urged the team over the $308,564 it ostensibly owes while instituting better controls for its complimentary ticket policy. Since the various parties disagree, to arbitration this will go. As Frank Donnelly at SILive.com reported, the two sides “want to put the issue behind them,” but the EDC is prepared to go to court to collect its money. And once again, a professional sports franchise with a sweetheart stadium deal from its host seems to be withholding money that should go to fill the city’s coffers.