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New York City Comptroller William C. Thompson, Jr. today disclosed that, in response to his audit last month, the New York Yankees have paid the City nearly $3.6 million.

“I am pleased that the New York Yankees fulfilled their responsibility to the city and paid the full amount identified in my audit,” Comptroller Thompson said. “Not only are the Yankees a great team, but they are fine corporate citizens as well.”

The audit found that the Yankees generally adhered to the provisions of their lease agreement with the City and had an adequate system of internal controls over their revenue collection and reporting functions. The audit, however, found the Yankees underreported revenue by $9,070,960 and overstated deductions against revenue by $34,489,804, thereby owing the City $3,599,575 in additional fees.

Thompson noted that the Yankees had been extremely cooperative in meeting to discuss the matter. Last week, the Yankees paid the full amount to the City’s Parks and Recreation Department, which administers the Yankees lease agreement with the City.

The agreement requires that the Yankees pay the City the greater of either an annual minimum rent of $200,000 or a percentage of revenues from gross admission, concessions, wait service, per-paid parking and a portion of cable television receipts. The Yankees can deduct payments made to Major League Baseball, sales taxes, and 25 percent of property insurance premiums for the stadium from gross revenue before calculating rent payments.

The Yankees are allowed to deduct from the calculated rent certain costs incurred for maintaining the stadium. Additionally, a December 2001 amendment to the lease allows the Yankees to deduct new-stadium planning costs incurred annually for five years. The agreement allows the Yankees exclusive use of Yankee Stadium during the baseball season and permits the Yankees to sell tickets, provide food and souvenir concessions, provide parking for season ticket holders and offer cable television broadcasts.

Among the audit’s specific findings:

• For 2001 and 2002, the Yankees underreported their cable television receipts by a net amount of $6,925,290, resulting in the Yankees owing the City additional rent of $692,529.

• In 2001 and 2002, the Yankees reported concession revenue of $92,488,561 - $1,241,444 less than what was reflected on the Yankees books and records. Accordingly, the Yankees owe the City $99,583 in additional rent.

• For the 2001 baseball season, the Yankees underreported paid attendance by $33,214, resulting in the Yankees owing the City $20,990.

• For 2001 and 2002, the Yankees overreported deductions taken for payments to Major League Baseball by $34,481,362, resulting in the Yankees owing the City $2,733,975 in additional rent.

• The Yankees overstated their revenue-sharing deductions for 1997 to 2000 on their Statements of Rent. The Yankees claimed deductions totaling $70,940,082, when they were only entitled to deduct $50,236,418. Accordingly, the Yankees owe the City additional rent totaling $1,691,485.

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