Mayor Muriel Bowser has submitted a new bill to the D.C. Council to transfer ownership of Capital One Arena to the city, keeping the Washington Capitals and Wizards in D.C. through at least 2050, WTOP has learned.
According to the legislation, if approved, the District would buy the venue for $87.5 million and then lease it back to Monumental Sports & Entertainment, the ownership group of both sports teams, until 2050.
Monumental could extend the lease through 2070, according to a news release from the organization.
In April, the D.C. Council unanimously approved allocating $515 million to redevelop the arena. As part of the terms of that agreement, the District agreed to purchase the venue.
The money D.C. will spend on the arena is included in that $515 million investment, according to Monumental.
Separately, the ownership group said it also plans to chip in an additional $285 million for renovations.
Monumental would also cover any costs associated with going over budget.
The proposal would allow the District to own the arena and the land underneath Capital One. Under the previous arrangement, the District would have eventually owned the arena when the lease expires in 2047, according to Monumental.
Under the new lease, the teams would not be allowed to consider moving venues until June 20, 2045. After that date, they could negotiate a possible move with other jurisdictions, according to Monumental.
“We’re keeping Washington’s teams where they belong — here in the Sports Capital, and we’re
doubling down on having a world-class destination and entertainment district in the center of DC,” Bowser said in a news release. “We know that when our Downtown does well, our city does well. This catalytic investment is an investment in our residents and businesses in all eight wards.”
Monumental would continue to pay rent to the District annually under the bill. The rate would start at $1.5 million for the first six years, then escalate incrementally to $2.3 million, according to Monumental.
What changes are coming to Capital One Arena?
The renovations are expected to create thousands of jobs and construction is expected to begin “as soon as practicable,” according to a news release from Monumental.
The arena will be closed during offseason/summer months for construction, according to Monumental.
During the Wizards and Capitals seasons, construction will go on behind-the-scenes.
Neither Monumental nor the mayor’s office commented on when exactly renovations would begin.
Monumental said the renovations are expected to be finished in time for the 2027-28 season.
The planned renovations include expanding the main entrance on F Street to make it easier for fans to move through. The concourses will be widened and crews are installing more elevators and escalators.
The area with concessions will be larger and they’re adding bathrooms.
Athletes will get new training rooms, an expanded family lounge and a new area for dining. The Washington Capitals will have a new film room for reviewing and planning out plays. There wasn’t room for the Wizards to have a training room at Capital One Arena before, but the renovations will put in an on-site training facility.
NBC Washington first reported details on the proposed arena purchase.
This all comes after a deal negotiated between Monumental CEO Ted Leonsis and Virginia Gov. Glenn Youngkin to relocate the two teams to Virginia fell through in March.
This story is developing. Stay with WTOP for the latest.
WTOP’s Tadiwos Abedje and Ciara Wells contributed to this story.
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