The Washington Post is reporting that a group of Virginia lawmakers plan to meet on Monday regarding a plan that would see the Washington Capitals and Washington Wizards play at a new arena in Northern Virginia.
Monumental Sports and Entertainment, the parent organization for both teams owned by Ted Leonsis, has been in talks about potential relocation of its two biggest franchises for some time now. Back in June, another report dropped about the process as MSE and Leonsis have been trying to build as much leverage as they can over the DC government.
The two parties have been entrenched in negotiations about future renovations to Capital One Arena, which MSE wants the city to help fund to the tune of $600 million.
New details about that plan have now been revealed. The move would take the Capitals and Wizards to a “massive mixed-use development” in Alexandria’s Potomac Yard neighborhood. While the outline of the project is taking shape, MSE has not definitively said whether or not it would actually move its pro teams into Virginia.
Constructed 26 years ago, Capital One Arena is relatively old for an NHL barn, with MSE angling for structural upgrades to the building. Rather than funding improvements themselves, MSE hopes to fund the project at least partially with public money. Owner Ted Leonsis previously implied a willingness to leave Cap One back in 2016 but quickly walked back his comments.
Leonsis’ qualms then were about the $36 million annual mortgage that he has to pay on Cap One which he called “the worst building deal in professional sports.” Since then though, MSE has put a lot into development of neighboring properties like Gallery Place and will be opening a full-fledged TV studio there in 2024 for Monumental Sports Network.
Even if relocating isn’t just a negotiation tactic, a move for the two franchises would not come soon. Should MSE decide to relocate, they would need to pay off the $35 million bond on their ground lease. Per the Post, the lease currently runs until 2047, but would revert to a 2027 end date if the bond is paid off. MSE would also then need to dump hundreds of millions of its own dollars into the relocation project.
“Monumental Sports & Entertainment is committed to delivering the best fan experience, winning championships, giving back to our communities, and becoming the most valuable regional sports and entertainment enterprise in the world so that we can continue to reinvest in our fans and community,” a Monumental spokesperson wrote in a statement provided by the Post. “Our commitment to the DMV is unwavering and we look forward to sharing plans for future investments.”
The vote, which could still be postponed until next week, will come from Virginia’s MEI Project Approval Commission. Proceedings for the commission are “private under an exemption in state code” because it works on economic development deals.
One of the main factors potentially pushing MSE to seriously consider relocation involves lack of progress or development in the area around Cap One. A Post report from last month states that Leonsis has been particularly bothered by buskers playing loud music outside his office.
As things currently stand, Virginia remains the largest state in the country without a major league sports franchise. This potential project could change that in a hurry.
