Saturday, May 23, 2009

Why NY Taxpayers Built a Multibillion Dollar Stadium for the Richest Team in Sports

David Sirota has the story of this outrageous rip-off right here. Excerpt:

Foreign oligarchs use guns to confiscate citizens' wages. American oligarchs rely on government to give theft the aura of legitimacy, and Manhattan's richest man is no exception. As an investigation by Democratic Assemblyman Richard Brodsky documents, Bloomberg used various public agencies to extract between $1 billion and $4 billion from taxpayers and then spent the cash on a new stadium for the Yankees, the wealthiest corporation in sports.

The move followed a Bloomberg-backed 2005 initiative giving infamous investment bank Goldman Sachs $1.6 billion in taxpayer-financed bonds to construct its new headquarters -- and amazingly, this encore rip-off is more spectacular. Mimicking tax cheats' deliberately complex transactions, the city owns the stadium, leases it to an agency, which then leases it to a corporate subsidiary, which then leases it to the Yankees. At the end of the Ponzi scheme, the team is permitted to use the taxes it already owes to pay off the mortgage on its new chateau.

BTW, a similar scam was run in Texas a number of years back. It was run by another publicly-enriched crook:

George W. Bush.

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