The Handbook of Municipal Bonds

CASE STUDY 15

Yankees versus Mets: A Subway Series

Mitchell Savader Chief Executive Officer The Savader Group LLC and Managing Director Civitas Funding Group LLC

 

 

 

The movement to replace aging sports venues with more modern facilities has affected a number of communities throughout the nation. Spectators demanding better views and state-of-the-art amenities, as well as owners seeking greater revenue, have pushed the movement forward and driven the construction or planning of all types of new sports facilities.

Baseball has been a major beneficiary of this movement, and no city has produced grander plans than New York City. As home to two major league baseball teams—the Mets and the Yankees—and two major league baseball stadiums—Shea Stadium and Yankee Stadium—New York City had long been considered a likely candidate for the construction of new facilities.

After much planning and negotiation, the city took a major step forward in August 2006 to fund the construction of two new baseball stadiums. The New York City Industrial Development Agency (NYCIDA)—acting on behalf of the City of New York—sold two separate tax-exempt bond issues totaling approximately $1.6 billion to fund the construction of the new ballparks: one in the Bronx for the New York Yankees and the other in Queens for the New York Mets. Both of the new facilities are to be constructed alongside each team’s existing stadium.

When completed, the new Yankee Stadium is expected to have more than 50,000 seats, 60 luxury ...