Washington Wizards’ And Capitals’ New Arena May Be Dead Already — Here’s What We Know
Topline
The proposed deal to build a $2 billion new stadium for the Washington Wizards and the Washington Capitals in Alexandria, Virginia, has emerged as a contentious issue in the state legislature—with one state senator declaring the project “dead” on Monday before it even reached a senate committee.
The bill that would build the massive stadium complex was killed in the state Senate, but a version … [+]
Key Facts
On Monday, Virginia state Senator L. Louise Lucas removed the bill that would fund the new stadium from the Senate Finance & Appropriations Committee docket just days after a similar bill passed a House committee, effectively quashing the proposal in one chamber before it could even be discussed.
In a post on social media, Lucas said the proposed stadium deal, which could see Virginia taxpayers paying hundreds of millions if the stadium doesn’t meet revenue estimates, was “not ready for prime time” as it stands.
However, two of the legislature’s Democratic leaders, Senate Majority Leader Scott Surovell and House Speaker Don L. Scott Jr. told the Washington Post they were still open to negotiations with Monumental Sports, the company that owns the teams.
The new stadium has become a major goal for Republican Virginia Gov. Glenn Youngkin, who is now trying to sell a public financing deal to Democrats, who control both chambers of the state’s legislature.
Another version of the bill in the state’s House of Delegates passed its committee hearing 17-3 on Friday and will be heard on the floor on Tuesday—but several Democrats who voted in favor expressed skepticism about the legislation and planned to continue negotiations during the House session, the Associated Press reported.
In a statement sent to Forbes, Monumental said they were still “encouraged” about the deal after the House bill passed on Friday, and said they had “healthy discussions” with lawmakers.
Key Background
In 2023, billionaire Monumental CEO and majority shareholder Ted Leonsis announced that the Washington teams would need hundreds of millions of dollars in public funds in order to renovate Capital One Arena, the 20,000-seat venue located in D.C.’s Penn Quarter neighborhood. In December, Leonsis abruptly announced the teams would leave the city after Monumental finished building a massive new sports and entertainment complex on 70 acres of undeveloped land in Alexandria’s Potomac Yard neighborhood. The planned development would cost an estimated $2 billion. According to a study obtained by the Washington Post, taxpayers could end up paying for about $1.35 billion of that total, making it the largest arena subsidy ever. However, both Youngkin and Leonsis have insisted the public won’t foot the bill after the project starts generating new income. In an open letter published in January, Leonsis said under his proposed deal the stadium would not be financed through new taxes, instead it would be funded through bonds that Monumental would pay back to the state through lease payments, user fees and taxes on the new venues.
Forbes Valuation
We estimate Ted Leonsis’ net worth at $2.8 billion, a fortune he originally made working as an executive at AOL in the 1990s and early 2000s. He owns a majority stake in Monumental Sports, the company that owns the Washington Wizards, Washington Capitals and the Washington Mystics.
Contra
On Friday, D.C. Mayor Muriel Bowser published a letter criticizing Monumental Sports and Leonsis for not accepting a deal put forward by the City Council to renovate the stadium. Bowser said the city offered Leonsis $500 million for stadium renovations, more than half of the estimated cost of $800 million, and accused the billionaire of being enticed by “money and land” in Virginia. The mayor seemingly left the door open for Leonsis to accept D.C.’s deal, but warned him that the city will take control of their arena if they move forward with the new complex in Virginia. “The city owns the land under the Capital One Arena and will own the building should Monumental break its lease,” Bowser wrote, later adding, “I am also confident that whether we operate the current arena or build something new, we will continue to have a world-class concert venue in D.C.”
Further Reading
