The Bloomberg administration is trying to get the Internal Revenue Service to change a rule that prevents privately owned sports teams from issuing tax-exempt bonds. Hundreds of millions of dollars in tax breaks are at stake. WNYC's Matthew Schuerman has more.
REPORTER: The IRS imposed the rule after the Yankees went out for their first round of financing for its new stadium two years ago. Back then, the tax exempt bonds saved the team $200 million through lowered interest rates. But now, the Yankees need more money to finish their ball park. Bettina Damiani, of the watchdog group Good Jobs New York, thinks the IRS rule should stay. She says it prevents government from subsidizing private companies unnecessarily.
DAMIANI: I'm not surprised the Yankees want more. I'm totally surprised that public officials are willing to entertain the idea, much less try and lobby Washington and the IRS to make it happen.
REPORTER: The same IRS rule is preventing the Nets basketball team from getting cheap financing for its arena in Brooklyn. For WNYC, I'm Matthew Schuerman
HOST: Spokesmen for both the Nets and the Yankees say they will finish their projects no matter what happens with the IRS rule.
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