The Yankees have been given the go-ahead to refinance over $1 billion in municipal bonds that were issued to build their new stadium.
The team applied for refinancing in an effort to make the most of current low interest rates. Refinancing the bonds will allow the Yankees to lower their borrowing costs and save money.
Yankee Stadium is the most expensive sporting complex across all pro leagues and sports, according to a study by the Brookings Institution. The stadium, which opened in 2009, cost $2.5 billion to build. Of that over $1 billion was paid for through the use of tax-exempt municipal bonds that were issued in 2006 and 2009.
The bonds were used to fund part of the design and construction of the 1.3 million square foot stadium which seats more than 50,000 people.
Financing stadium construction with tax-exempt municipal bonds is common practice. In Major League Baseball alone, bonds have been used to partially fund construction of 12 stadiums since 2000.
The Yankees received approval to refinance on Tuesday from New York City's Industrial Development Agency, which owns the stadium and leases it to the team. The agency receives payments on the bonds in lieu of taxes from the Yankees.
The refinancing transaction is scheduled to close in October.