The NBA's Washington Wizards and NHL's Washington Capitals will remain in the District of Columbia after reaching a deal with the city to put $515 million into a renovation of the teams' Capital One Arena.
According to a press release, Monumental Sports & Entertainment’s founder, chairman, principal partner and CEO, Ted Leonsis, D.C. mayor Muriel Bowser, and D.C. council chairman Phil Mendelson announced the agreement for a renovation and modernization of Capital One Arena and an expansion of Monumental’s business and hospitality operations next door into Gallery Place.
“Today is about staying in D.C. and is about what the Mayor and Council have done in downtown D.C," Leonis said. "We got to this place because we kept an honest dialogue with the Mayor and her staff, and we both took the high road as we didn’t know how things would end. This is more than an investment from the city – it’s a true partnership demonstrated by all of these investments which the city has committed to for our fans to have an exceptional gameday experience.”
The District has committed to the previously announced financing of $500 million towards the renovation. In addition, D.C. will provide $15 million towards improvements of the alley connecting Gallery Place to Capital One Arena. Legislation enacted by the D.C. Council allows this funding through an appropriation for capital construction projects – funded by general obligation bonds.
In the 14 years since Leonsis has owned the arena, he has invested over $200 million in renovations and upgrades – including:
- $120+M in capital expenditures on items including roof, all new seats, new sound system, center hung scoreboard, LED lights/bowl lighting, concourses and concession stands, dehumidification, escalators, fire alarm, ice plant, tech improvements, etc.
- $18 million for District E Powered by Ticketmaster and other renovations
- $60M investment in new broadcast and production studio for Monumental Sports Network
- $15M in enhanced staff space for several hundred Monumental Sports employees
“Monumental Sports has been a great partner with the District since acquiring the Arena nearly 14 years ago. We’re ecstatic to keep them as a cornerstone of our Downtown,” said D.C. Council chairman Phil Mendelson. “As we’ve said all along: our government is able to move quickly and follow through on our commitment. With the extended relationship with Monumental, we’re looking forward to the reinvigoration of Gallery Place/Chinatown.”
Additional Deal Terms:
- $515 million in cash
- This would help us develop the best sightlines for fans, premium hospitality options, better digital infrastructure and other critical improvements to modernize fan areas, enhance player spaces and the fan experience inside and out.
- An agreement to add nearly 200,000 square feet of newly programmed space throughout Capital One Arena and in the Gallery Place building next door
- Safety Improvements
- Seventeen (17) dedicated officers from 2 hours before gametime to 2 hours after game time.
- Support our Athletes
- New Wizards Practice Facility, with options including top floors of Gallery Place
- The Mystics and Go-Go will continue to play in the arena but we are now allowed to designate 4 games per season and all playoff games, should we so desire, to play at Capital One Arena
- Larger Business Operation Improvement
- Taking control of Entertainment & Sports Arena management to maximize player space and practice courts
- Better Transportation-Related Benefits to Support Employees and Fans
- Transportation coordination on ingress/egress for events
- Dedicated ride share zone and drop off for events
- Consideration of moving the bus stop on H Street (which our guests and staff have strong concerns about walk in and around when arriving by metro to COA)
- Consideration of 200 parking spaces for arena staff
- Better Logistics Around Capital One Arena for More Efficient Operations
- As an example, streateries on 6th street across from our loading dock
- Truck parking for events
- Ability to close off F Street 2 hours before game
- Better Management Around the Arena
- No vending/loitering/noise restrictions by creating Entertainment District
- Maintenance and landscaping around Downtown
- Better Coordination on City Processes
- Expedited permitting for the renovation/transformation
- More Revenue Generating Assets
- Expansion of public right of ways with corresponding air rights
- Additional signage district around Gallery Place
