New York Yankees Partnership v. O'Cleireacain

OPINION OF THE COURT

Smith, J.

The issue in this case is whether payments made in liquidation of partnership interests and representing the outgoing partners’ share in the amortization of player contracts are payments "for services or for use of capital” within the meaning of section 11-507 of the Administrative Code of the City of New York and, thus, not deductible from the partnership’s unincorporated business gross income.

Petitioner, an Ohio limited partnership with its principal place of business in New York, owns and operates the New York Yankees major league baseball team. Five limited…