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Bloomberg Keeps His Billions Separate From His Mayoral Obligations? Yeah, Right!

No mayor may be able to top Rudy Giuliani's public worship of New York's Bronx baseball team, but with the Yankees seemingly headed to the playoffs again, the current incumbent will no doubt at least make an effort.

Mike’s kind of guy: Steve Rattner
Newscom
Mike’s kind of guy: Steve Rattner

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special reporting by Jane C. Timm
research assistance by Johanna Barr, Dene-Hern Chen, Aaron Howell, Lucy Jordan, Jesus Ron, and Grace Smith

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As a result, the image of Mike Bloomberg hamming it up in a first base box will be beamed into city homes this October, right before election day. And for many viewers, that image will be carried on their local cable-network provider.

For most of New York, that provider is Time Warner.

Funny thing about the Yankees on your Time Warner cable box. A few years ago, the Yanks were in a murderers' row with several other sports channels. Mets games are broadcast on SNY at 26. MSG, the Madison Square Garden Channel, owns 27. Sports heavyweights ESPN and ESPN2 have 28 and 29.

And batting cleanup (more or less), at channel 30, was the YES network that broadcasts the Bronx Bombers.

In cable, it's common to group channels by genre. The thinking goes that each of them benefits from proximity to the others.

But the Yankees, easily the most popular pro sports team in town, recently got pulled out of that lineup like a light-hitting shortstop struggling below the Mendoza line.

In March 2008, the Yankees were suddenly banished from the sports oasis on your cable dial, pushed all the way up to channel 53.

That puts them just after the Learning Channel and just before AMC, a very mysterious exile from cable's sports landscape.

Until, that is, you consider what took its place.

March 2008, when the switch was made, was also just six short months from a major date concerning your local cable provider: It would mark the end of Time Warner's 10-year contract with the city of New York.

It's almost a year now since that date came and went. The city, however, is still slowly negotiating a new contract, probably the most lucrative in the country. For many reasons, the delays have already worked to Time Warner's advantage.

You can be sure that Time Warner believes that its decision to bump the Yankees and move a minor news network all the way from channel 104 to a prime spot on the dial carries some weight with the city and the man who runs it.

And that's because Mike Bloomberg, besides running New York, also owns a company called Bloomberg LP, which happens to run a little business-news network called Bloomberg TV.

Which you can now find on your cable system at channel 30.

Because Bloomberg is not only the mayor but also the richest man in New York, he agreed to several conditions when he took office in 2002. In order to make sure that his decisions about the welfare of all New Yorkers would not be complicated by his personal business welfare, he was required by the city ethics board to sell his publicly traded stocks and his interest in a hedge fund. Much was made in the media of how well the billionaire, and the city he ran for a salary of a dollar a year, had been sealed off from his (potentially corrupting) billions.

After nearly two full terms, however, the walls between the mayor's money and his public office that once looked so strict have appeared more and more porous. In some cases, like with Time Warner, that may not have been Bloomberg's doing. And in others, it may not have even been what was on his mind. But as he nears a third term, there's little doubt that Bloomberg's business interests have become increasingly intertwined with his government, a conflicted marriage unprecedented in the life of the city and unchecked by an independent overseer.

One of the rules Bloomberg agreed to was that he would keep his hands off "all matters involving cable television."

While Bloomberg has backed wholesale deregulation and higher rates for cable, saying that carriers "don't make a lot of money," there is, in fact, no evidence that Bloomberg has ever personally intervened in the decisions about the three national companies that have contracts with the city. But it's clear that his network did benefit, mightily, from Time Warner's channel change.

It's also true that television is increasingly important to Bloomberg LP's long-term business plan. Until Bloomberg's most trusted aide, Deputy Mayor Dan Doctoroff, announced his departure from city employment, he had overseen the city's cable franchises (his designated successor, Ron Lieber, does that now). Doctoroff left the city to become president of Bloomberg LP, where he has made the revamping of the television operation a top priority, bringing in NBC's Andrew Lack and adding Charlie Rose.

Two months after Doctoroff was installed as Bloomberg LP's president in January 2008, the Time Warner channel switch happened.

There's no way to tell if Bloomberg TV's move from channel 104 to channel 30 on New York's dial has improved the network's ratings, since Nielsen doesn't release them. But cable experts say that the move was certainly designed to enhance the network's advertising potential in Manhattan, where the people who make ad-buying decisions are much more likely to notice the station now than when it was in triple digits. Meanwhile, in the rest of the country, Bloomberg TV remains in the cable hinterlands: It's still at 224 in Los Angeles, 252 in San Diego, 246 in Boston, and, like it once was in New York, 104 in New Jersey. (Cablevision, which has the city contract in the Bronx and parts of Brooklyn, has Bloomberg TV at 105.)

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  • REAL Justice 04/27/2010 10:48:00 PM

    I 100% fully Agree! Bloomberg is one of the most Corrupt mayors there is.- Next to His pal he was put in office to cover up for and That's Rudolf G. Fooliani. (see Bernie" Kerik.) Who hides behind law and authority like a sheep in wolf's clothing To protect there corrupt interest. this is like a Worst-Case Scenario, bad episode of a 1955 George reeves superman episode where a crooked robbin baron mafia criminal who was elected mayor of a city. who infiltrates city office to protect him and his white collar criminal cohorts who rob's the city blind. We where warned then in 1955 threw the movies of these type of real criminals in city office then. and Now we must warn and expose these corrupt so-called city officials again in 2010. and Mike Bloomberg is one of them! When all is said and done let's just hope the Feds in Washington go after this creep Bloomberg for all the damages he has caused to the city and to this country. SEE MR.911 As Proof. http://www.youtube.com/watch?v=Ni7Gxaopn5Y

  • John Molinari 09/09/2009 5:35:00 PM

    Two Gross National Products I always thought the true gross national product was spam, and in a way I wasn�t wrong. What is spam? It is an indefinable blend of things that are evidently so harmful that the ingredients have been a closely guarded secret for 70 years. A closer analysis will reveal that spam is not unlike our political process. Pollen Ticks would be a more appropriate title for our election and governing system. Tick � a small wingless bloodsucking insect that lives on the skin of humans. Not to say that good decent well-intended leaders don�t appear with selfless motives from time to time, but this is not only rare but also dangerous for them as the special interests try to take them apart piece-by-piece so their unbridled quest for more greed will not be impeded. Our system is based solely on MONEY. We have enabled our election process to become a cottage industry in the U.S. In the U.K. if someone runs for Prime Minister they are given equal funds, a level playing field by the government and the whole process takes a couple of months. It always astounds me how we feel that we have nothing to learn from other nations whether it be healthcare, or their electoral process when we are only a couple of hundred years old to their thousands of years of experiences. So much money is needed to run for any office in America that if one succeeds they need to spend most of their time in office not serving the people but raising money daily for their next election. If you should have an endless supply of money like Bloomberg in NYC you can spend any and all of it to get yourself elected, in his case the amount exceeds 20 billion. Where is the outrage? Do we understand the precedent this kind of money can set? In NYC term limits are in place, voted on by the people. Well Bloomberg decided that after two terms he wanted this toy for himself one more time, ok, so far so good, except he could not legally run, so instead of having the people reverse the term limits they put in place he went to the city council, cut deals, donating to their campaigns, or �foundations,� and got them to clear the way for him to have another run for mayor. He is spending so much for so long that one barely knows who if anyone is opposing him; some very fine people took themselves out of the race, as they could not compete with this kind of money. I won�t get into my personal feelings about the mayor of NYC as there is not enough room here to do so, but like him or not, shouldn�t this perversion of our system be alarming to everyone? The very premise of his campaign should set your hair on fire; is his whole basis for another run �everything is so bad after my two terms that only I can fix it?� Come on everyone wake up! Until money is removed from our system we will never have a government of the people, by the people and for the people. Washington has become a city of lobbyists. Some say �what�s wrong with that?� they present other sides of the debate, well if that was the case we would only need one for each cause or industry. NOT one who bares gifts in the form of trillions of dollars to influence our representatives. Forget the NRA, or any other lobbyists there are an average of 6 lobbyists for each Senator and Congressman representing the Healthcare/Insurance industry alone So if we don�t get a decent Healthcare bill don�t blame our President, he is only one man, blame your self. Power to the people! http://johnmolinari.blogspot.com

  • Michelle 09/08/2009 8:51:00 PM

    Where the hell is the FBI to arrest Bloomberg and Christine Quinn???? Also Simcha Felder

  • Suzannah B. Troy 09/04/2009 3:44:00 AM

    Yo Wayne: Artist's prerogative: I like my piece Bloomberg Newzzz and my portrait turned political poster lampooning King Mike Bloomberg, Is Democracy for Sale?poster more than your piece but thank you for writing it! http://bloombergnewzzz.blogspot.com/ http://www.youtube.com/watch?v=UMSGycNrCi8 Here I get to yell "Vote Bloomberg out of office! Oust the King from the steps of City Hall as Mike Bloomberg gives me the thumbs up! You did not go deep enough in to the pension scandal at City Hall that in my opinion splish splashed all the way to the White House and now Steve Rattner has resigned but he said it was to spend more time with his family. I had a community activist who thinks he is brilliant tell me Mike Bloomberg is not doing it for the money and the guy is anti-Bloomberg. I just wanted to strangle him but he isn't worth the effort and he will vote against Bloomberg. Every vote counts. Thanks, Suzannah B. Troy

  • Dee Alpert 09/03/2009 11:00:00 PM

    Everyone assumes that because Bloomberg is a billionaire, he's not into doing things which involve payoffs or kickbacks - to him. This seems to be because most of us would say "I've got enough" when we hit the $ billion level. But what if it's more like people who eat obsessively, even when they've clearly had more than enough ... and then some? A disorder? Most of us don't have what it takes to accumulate $ billions on $ billions. Could it be true that the rich are really quite different than the rest of us? I've been wondering about this because I'm noting that the Bloomberg administration seems to be overtly tolerating, or even supporting, mob involvement or control of a number of discrete business areas intertwined with NYC govt. operations. 1. The public school transportation industry. By repute, this has been mobbed up for dogs' years. I remember hearing about this when I was a kid! And I'm no spring chicken anymore. The US Attorney goes after, and sometimes gets, prosecutions of corrupt bus driver/matron union officials and bus company execs. with great regularity. Almost periodicity. Yet the NYC DOE's Office of Pupil Transportation, which obviously is the control center/hub for mob penetration and control of this pricey business, has been left unscathed - and uncleansed by the Bloomberg/Klein administration. I did a surveillance of one NYC DOE special ed. school for profoundly disabled kids last year, just to see what was happening, and the scam - quite well organized and NYC DOE protected - was both astounding and flagrant. It's not just a money issue - corrupt control of the transportation of disabled children to and from schools has resulted in terrible problems for these children, including being sexually molested on big yellow buses when they were supposed to be on small special ed. minivans, etc., etc. Of course, someone is paid more for the ghost minivans which these children require, but aren't getting. 2. Corruption in the Buildings Dept. - root and branch - has been so well documented by now that it's handled as a "given" by anyone in any industry which has to deal with Buildings - or so I'm told by insiders, regularly. How many times have I heard "They're all paid off!" Not in surprise; not in anger or righteous indignation: just as a matter of fact? In the last month alone, Buildings gave its inspectors cell phones with GPS tracking enabled so it could verify their reports of having done inspections at X locations. (Of course, this won't take care of the pervasive problem re obviously concocted contents of these reports ... . Been there; done that!) Then Buildings announces, after being outed in the Times and risking exposure in upcoming concrete testing firm indictments, that it's setting up its own lab to test concrete used in City govt. projects. Hmnn. As a neighbor, hardly sophisticated, said to me: "But Buildings is so corrupt - all it means is that the people in this NYC govt. testing lab will be taking payoffs, or orders, or both." What else is new? So in ten or fifteen years, when the Bloomberg mayorality is but a dim memory, we'll have crumbling City-built projects, and my neighbor will have the rich experience of being able to say "I told you so." But the cookie, or concrete, will still be crumbling. 3. Then there's the asbestos cleanup/demolition scandals and mob operation of these industries, apparently with full cooperation from various NYC govt. agencies. William Rashbaum's Times piece on the asbestosd demolition king of the northeast was interesting. Various articles and reports on the Deutsche Bank fire and mob penetration of the demolition/hazmat removal operation there were fascinating and informative. Thank you, Wayne Barrett. Thank you Brian Kates. But these were hardly surprising. It's really same old/same old. The Bloomberg good management mantra has just been applied as a thin overlay over the longstanding cesspools underneath, and then used as a way of protecting the cesspools from public scrutiny. Ultimately, though, it can't hide the stink. When dealing with a real estate developer, who may be a mob front, and who had documentably illegal and dangerous asbestos removal work done next door, our tenants' association has had to set up a checkerboard with "safe to complain here" and "not safe to complain here" squares all over the place. Many, although not most, of the "not safe to complain here" squares involve NYC govt. agencies. Happily, we've found a few "safe to complain here" squares, but one can never be sure that the "safe" squares will be safe next time around. Apparently, illegally exposing 400 innocent citizens to asbestos is acceptable s.o.p. to NYC's govt. at this time. If this isn't mobwork, what is? My theory has always been that no elected official, and no party group to which s/he belongs, should have more than two terms in office, period. Even if it means electing the devil next time around. I figure that in a first term, folks who want to be corrupt spend a lot of time exploring various ways to organize and implement scams and start to put the promising ones into action. In a second term, these gems push the scams that have shown promise, with increasing urgency as they see the end of the electoral line looming on the horizon. This is when the really corrupt folks start to go over the top and pull mega-scams to fatten up their bank accounts in case the next office holder or administration isn't friendly. If there's a third term ... fuggedaboudit! This is where corruption gets really out of control and ultimately - if the public is lucky - engenders criminal investigations, prosecutions, convictions, and clean ups ... until the next round of corrupt wannabees in the next administration find their sea legs. Media scrutiny - sound investigative journalism - can make the last half of a second term extremely perilous for any pol, by exposing the scams which are then in full flower. Uncontrollable events such as the Deutsche Bank fire, which caused righteous public outrage, can sometimes throw a wrench into the otherwise well-greased corrupt operations and spur enough public kickback so that a third term becomes inadvisable. This important public safeguard appears to have been mostly neutered by the massive Bloomberg presence, and influence, in the media industry both here in NYC and nationally. I can't, for the life, figure out why Bloomberg would tolerate such thorough mob penetration of specified areas of City government life, so I can only fall back on my "for some people, enough is never enough" hypothesis and await interesting and fervently hoped-for third term investigations, indictments, prosecutions and convictions. Unless some area of Bloomberg-related endeavor has pulled a Sharpton and is a strong contributor to some entity which influences prosecutors ... . Let me say, to avoid being threatened with a nasty (but meritless) libel law suit that this is all in my head - just the musings of someone who has lived a while with eyes wide open and brain at full speed. But perhaps the speed has been intoxicating and I imagine seeing things that aren't really there? Of course, it could be that underlings who organize these well-crafted scams are such smooth, right-talking professionals, that they've scammed those up the ladder and not just down. And that overlong reliance on underlings who seem to talk the talk and walk the walk breeds, like familiarity, their version of contempt for the man at the top. Too bad nobody can put GPS chips on Bloomberg's non-NYC govt. employees. And audio recorders, to boot.

 

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