Washington Capitals, Wizards Are Planning a Move

Owner plans to move NHL, NBA teams to Virginia in 2028 under nonbinding agreement
By Arden Dier,  Newser Staff
Posted Dec 14, 2023 6:39 AM CST
Washington Capitals, Wizards to Move to Virginia
Orlando Magic and Washington Wizards players warm up on the court before an NBA basketball game at Capitol One Arena in Washington, Sunday, Dec. 27, 2020.   (Shawn Thew/Pool Photo via AP)

The owner of the Washington Capitals and Wizards plans to move both teams from the District of Columbia to northern Virginia, about 8 miles south, in as little as five years. Monumental Sports & Entertainment owner Ted Leonsis and Virginia's Republican Gov. Glenn Youngkin announced a nonbinding agreement Wednesday that would see the construction of a $2 billion complex including a 20,000-seat arena, practice facilities, a performing arts venue, fan plaza, media studio, convention center, and Monumental's global corporate headquarters, per the Washington Post and AP. The pair stood on a 12-acre lot in Alexandria's Potomac Yard neighborhood, next to a metro station and Virginia Tech graduate school set to open in 2024, where they hope to break ground.

The NHL and NBA teams need to stay in Washington until 2027 under the terms of Monumental's lease. The company says it's planning the move for 2028, with construction to begin in 2025. But as the deal is nonbinding, DC is still trying to convince Monumental to stay put. Leonsis has complained that the mortgage on Capital One Arena, now more than 25 years old, is "the worst building deal in professional sports" with costs around $36 million per year, per the Post. Late Tuesday, DC Mayor Muriel Bowser announced a "best and final offer" to include $500 million in public funds to restore the arena. During Wednesday's announcement, Leonsis said "our intention is to expand here and keep Capital One Arena in DC a great place," for things like concerts and his other team, the WNBA's Washington Mystics, per the AP.

Virginia will contribute $150 million to $200 million in transportation improvements and issue $1.4 billion in bonds for the relocation project, per the Post. The bonds would be repaid over 40 years, including through new tax revenues and roughly $30 million in annual rent. Monumental will pay "more than $400 million" upfront, Youngkin said. He added the deal would mean "over 30,000 new jobs." The deal was unanimously approved by a committee of Virginia state lawmakers Monday but will eventually need the state legislature's approval. Fliers urging elected officials to "save the neighborhood" have already gone up in the area, where a small protest accompanied Wednesday's announcement. "I hate subsidizing billionaires," one protester told the AP. (More Washington Capitals stories.)

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