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The New York Mets owe the City $3,381,816 as a result of the team underreporting revenue and overstating deductions over a five-year period, according to an audit by New York City Comptroller William C. Thompson, Jr. Auditors found that, while the Mets generally adhered to the provisions of their lease agreement and had an adequate system of internal controls for revenue collection and reporting functions, the team did not comply with lease requirements by failing to disclose all revenue and overstating deductions between April 1, 1996 and December 31, 2000.

Based on a 20-year lease agreement secured in 1985, the Mets must pay the City the greater of either an annual minimum rent of $300,000 or a percentage of revenues from gross admissions, concessions, wait service, stadium advertising, parking and a portion of cable television receipts. The agreement allows the Mets to deduct portions of the payments they make to Major League Baseball and all sales taxes before calculating rent payments to the City.

"We found the Mets underreported revenue by $18,363,226 and overstated deductions against revenue the team was entitled to take by $27,766,408," Thompson said. "Further, the Mets have failed to satisfy a portion of a prior audit assessment totaling $83,186."

Among the findings, the Mets underreported $13,475,218 in advertising revenue, $4,870,964 in concession and wait service revenue and $17,044 in Skybox revenue. In addition, with regard to payments to Major League Baseball, the Mets deducted $47,411,806 from their reported revenues, rather than the $19,645,398 to which they were entitled. As a result of both findings, the Mets owe the City $3,381,816.

The audit recommends the Mets pay the City $3,381,816 in outstanding fees, ensure that all advertising, concession and Skybox receipts are reported on rent statements to the City, and ensure that only actual revenue-sharing payments pertaining to admissions and cable receipts are deducted from revenue when calculating rent due.
The audit further recommends that the City Parks and Recreation Department ensure that the Mets pay the fees, comply with the other recommendations in the report, and incorporate a late payment penalty clause in future leases with the Mets. The Mets disagree with the audit's findings.

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