Monumental Sports & Entertainment plans to move the Washington Wizards and Capitals from D.C. to a new publicly financed arena in Potomac Yard that will anchor a $2 billion entertainment district, a huge win for Northern Virginia but a setback for efforts to revive downtown D.C.
“We want to build the most fan-friendly experience. When I saw the chance to build on 70 acres, with a clean slate, this place is one of a kind,” Monumental Chairman and CEO Ted Leonsis said Wednesday morning at a press conference with Virginia Gov. Glenn Youngkin and other state and local officials at the site of the new 20,000-seat arena in Alexandria.
Ted Leonsis, center, with Virginia Gov. Glenn Youngkin, right, and Alexandria Mayor Justin Wilson, left, during a Dec. 13 event at Potomac Yard to announce a planned arena for the Washington Wizards and Capitals, Monumental Sports & Entertainment headquarters and associated entertainment district.
ABDULLAH KONTE / WBJ
Leonsis, a billionaire who bought the NHL’s Capitals in 1999 and added full control of the NBA’s Wizards and Capital One Arena in 2010, is billing the deal more as an expansion to Potomac Yard than a departure from the District. The company plans to continue to own and operate its existing downtown arena in D.C.’s Chinatown, saying it will become the home of its WNBA team, the Washington Mystics.
“Our intention is to expand here and keep Capital One Arena in D.C. a great place,” Leonsis said, adding that the focus there will be on “transcendent” women’s sports. Hear him in his own words in the video below.
If the deal with Virginia wins approval from state lawmakers and the Alexandria City Council, it will put Alexandria on the map in a new way, providing a stronger catalyst for millions of square feet of long-planned, nearby development at the former railyard and also boost the city’s brand. The Wizards and the Caps will be the first major league teams to play their homes games in Virginia.
Monumental and the commonwealth have reached a deal on a framework with the city and JBG Smith Properties (NYSE: JBGS), the Bethesda developer that controls most of Potomac Yard and most of the broader National Landing area. Talks began in earnest in April, according to one source, and news of a potential move across the river first surfaced publicly in June.
With buy-in from Youngkin’s office, a key Virginia legislative commission, Alexandria’s economic development agency and other key players, the plan already passed some crucial hurdles. But even the morning announcement drew roughly a dozen protesters, potentially indicating the challenge of getting the project through NIMBY-heavy Alexandria.
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