The Washington Capitals and Washington Wizards are staying in DC.
DC Mayor Muriel E. Bowser and Ted Leonsis, founder, chairman, and CEO of Monumental Sports & Entertainment, have finalized a deal to keep the franchises in downtown DC until 2050. The news comes after MSE abandoned their planned move of the two teams to Northern Virginia earlier on Wednesday.
NEWS: Monumental Sports Announces Strategic Partnership with the District of Columbia to Modernize Capital One Arena and Expand Its Growing Business and Hospitality Operations across Gallery Place
— Monumental Sports & Entertainment (@MSE) March 27, 2024
The main highlight of the new agreement will be DC spending $515 million in public funds over three years to help modernize the relatively old Capital One Arena and the area around it. In return, Leonsis will sign a new lease that keeps his teams at the arena for the next 25 years, a three-year extension on the previous lease.
“I look at outcomes, not process, and we got to the right outcome,” Leonsis said in a statement. “I know this was a difficult process and I want people to understand how much I love Washington D.C. and how much I’ve always loved Washington D.C. Mayor Bowser and her team heard us and worked with us and gave us the tools for us to meet the needs of our business to expand right here in downtown.”
There's no place like home. #SportsCapital pic.twitter.com/VabktQLMUG
— Mayor Muriel Bowser (@MayorBowser) March 27, 2024
Before announcing plans to move to Virginia, Leonsis and MSE were offered $500 million in public funds after initially asking for $600 million. Mayor Bowser and DC Council Chairman Phil Mendelson believed the $500 million offer to be the city’s best and final due to a strict borrowing cap but, according to The Washington Post, an additional $15 million has been found after a routine refinancing of the city’s debt.
According to Monumental, the additional $15 million will be allocated towards improvements of the alley connecting Gallery Place to Capital One Arena. The company has gone to great lengths to improve the neighboring Gallery Place, recently debuting a full-fledged TV studio there for Monumental Sports Network and opening District E, a “flagship Esports venue” that doubles as a bar and restaurant.
The moment you’ve been waiting for: we’re staying at @CapitalOneArena and it’s going to be bigger and better than ever before. Grateful, humbled, and excited. DC made it happen – the right outcome for all. pic.twitter.com/DqviTHenHO
— Zach Leonsis (@ZacharyLeonsis) March 27, 2024
“All of a sudden I really felt like we were in this together and that D.C. – it’s where I wanted to be,” Leonsis told The Washington Post’s Jonathan O’Connell.
Additionally, the agreement seeks to provide “nearly 200,000 square feet of newly programmed space throughout Capital One Arena and Gallery Place.” Safety improvements around the venue have also been prioritized as the city is committing 17 dedicated police officers in the area from two hours before each game to two hours after.
Other aspects of the deal include:
- A new Wizards practice facility potentially on the top floors of Gallery Place
- The Mystics and Go-Go getting new guarantees of games at the arena including all playoff games
- Dedicated rideshare zones and drop-offs for events
- Ability to close off F Street two hours before games
- No-vending/loitering/noise restrictions by creating an Entertainment District
The deal provides the next step for Mayor Bowser in her efforts to revitalize and reshape the Gallery Place/Chinatown neighborhood. Since the beginning of 2024, several task forces and action plans have been established to ensure that commercial affairs, public safety, new development, and general investment are prioritized to ensure the long-term success of the historic region.
“We are going to have a state-of-the-art urban arena in Downtown DC and that’s a great deal for DC, for the teams, and for the fans,” Mayor Bowser said in a statement. “We made a great offer – and kept that offer on the table – because we have known all along that this is a win-win for our city and the teams. This is a catalytic investment in Downtown DC. We are excited to have Monumental as our partners in DC’s Comeback and we look forward to working together to win for DC.”
