I disagree. I think the Yankees bear clear responsibility here, and it's letting them off too easy to argue, as they do, that they provide funds and nothing more and therefore shouldn't be held responsible.
(1) The Yankees set the thing up in the first place. The governance structure (a clear slush fund from the get-go!) was in their control at the time. (2) It was set up in order to close the deal on YS. (3) It's got the Yankees' name on it. (4) The charity delivers its annual reports to the Yankees and only the Yankees—implying Yankees control (or at least a watchdog function), and positioning the Yankees as the only party with sufficient information to hold the charity accountable.
And I think, Gator, that you're trying to have it both ways. (Respectfully; I'm not trying to internet-fight, here.) On the one hand, you say it's unfair to imply that the Yankees "are behind the shenanigans." On the other hand, you say they "had to pay off local pols." So we agree that they knew exactly what they were doing. However they're trying to spin it (pretty weak spin, too, if you ask me), the upshot is the same: They promised community benefits as a selling point for getting neighborhood buy-in, but then they structured the charity in such a way that they knew it wouldn't deliver. That puts them "behind the shenanigans" by any layperson's read of the situation. Even if you argue that the nature of the thing at the time escaped them (which is frankly unbelievable), their subsequent sole receipt of annual reports and refusal to either release that information or act on it puts the blame on them.
One way or another, it's clear that they sold the neighborhood a bill of goods, made promises they knew at the time they weren't going to keep. That's going to matter when NYCFC tries to make similar promises in pursuit of the SSS.