Capitals, Wizards owner, Youngkin, announce plans to move teams to Virginia

Monumental Sports & Entertainment CEO Ted Leonsis, Virginia Gov. Youngkin, and other local leaders announce plans to move the Washington Capitals and Wizards to a newly proposed entertainment district in Alexandria's Potomac Yard.

WASHINGTON - Monumental Sports & Entertainment CEO Ted Leonsis, Virginia Gov. Glenn Youngkin, and other local leaders announced Wednesday an ambitious plan for a public-private partnership that would relocate the NBA’s Washington Wizards and NHL’s Washington Capitals from D.C. to a newly proposed entertainment district in Alexandria's Potomac Yard.

The proposal, which would need the state legislature's approval, calls for the creation of a $2 billion sports and entertainment district that would span 70 acres. The project would include a new global headquarters for Monumental Sports, a state-of-the-art arena for the Capitals and Wizards, a Monumental Sports Network media studio, practice facilities, a performing arts venue, and an enhanced Esports facility. The move, if finalized, is planned for 2028.

"What we are about is putting unity in a community, and really helping this region bring up to its total promise," Leonsis said at Wednesday’s press conference.

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A rendering showing the newly proposed entertainment district in Alexandria's Potomac Yard that features an arena for both the Washington Capitals and Washington Wizards, and the global business headquarters for Monumental Sports & Entertainment (JBG SMITH)

In a statement released before the announcement, Leonsis said his group is committed to "providing world-class fan experiences while continuously evolving our teams, deepening community ties, and solidifying our role as leaders at the forefront of sports and technology,"

"Our moving here, if all of this goes as planned, we will still be a big, big part of the entire DMV. That is our goal. That is our commitment," Leonsis said Wednesday. "Create jobs, pay taxes, hire people from Virginia Tech and George Mason. We want to leave much more than we take, and that is really the promise that my family and everyone in our community will continue to do."

"I have to say, after many years, many years of dreaming, and many years of discussion, I am pleased to announce, that right here, in Alexandria's Potomac Yard, we have a plan to unleash a brighter, more extraordinary future," Youngkin said Wednesday.

Youngkin said in order to help finance the project, he will ask the Virginia General Assembly in the 2024 session to approve the creation of a Virginia Sports and Entertainment Authority, a public entity with the ability to issue bonds. Youngkin said those bonds would be repaid partly by tax revenues from the project.

Monumental Sports considers moving Wizards, Capitals to Virginia

Will they stay, or will they go? FOX 5 has learned that Ted Leonsis, owner and CEO of Monumental Sports, is set to have a meeting with Virginia Gov. Glenn Youngkin at 9 a.m. Wednesday that could spell out the future of the Washington Capitals and the Wizards.

The project would be developed by JBG SMITH, a real estate firm that is also developing Amazon's new headquarters in neighboring Arlington. If approved, the development could potentially generate a combined $12 billion in economic impact for Virginia and the city of Alexandria in the coming decades and create around 30,000 new jobs.

On Monday, Virginia lawmakers met to vote on the deal to bring the teams to Alexandria. Senate Majority Leader Dick Saslow told FOX 5 via phone: "We voted affirmatively to approve the potter of the project."

"This means it is moving ahead, but it still has to go through a whole legislative process," he said. "Final details still need to be worked out."

Alexandria Mayor Justin Wilson was joined by the entire Alexandria City Council on Wednesday at the press conference. "It is the experience of bringing your child to their first sporting event, or their first concert, to see in person someone doing something better than almost anyone else in the world, and doing it in front of a cheering crowd," Wilson said. "There is nothing like it, and it is in this yard, this very yard that served 100 trains a day, that we will create those experiences for generations to come."

The plan also proposes revitalizing the existing Capital One Arena to become the primary venue for the Washington Mystics. The updated arena would continue to host music performances, and other sports and family entertainment. Since acquiring Capital One Arena, Leonsis has invested over $200 million in renovations.

Commentary: Youngkin, Bowser, and Monumental

Virginia Gov. Glenn Youngkin may get his wish of luring pro sports across the Potomac with the potential move of the Washington Capitals and Washington Wizards, but D.C. Mayor Muriel Bowser is hoping a $500 million incentive package might give team owner Ted Leonsis a reason to reconsider. Jim Lokay asks if that's too little, too late on "The Final 5."

Additionally, the Capital City Go-Go, part of Monumental’s franchise in the NBA’s G League, will maintain its home at the Entertainment & Sports Arena in D.C.'s Ward 8.

On Tuesday night ahead of the announcement, D.C. Mayor Muriel Bowser and D.C. Council Chairman Phil Mendelson unveiled a counterproposal aimed at keeping the teams. The legislation would set the stage for a $500 million modernization of the Capital One Arena.

"The modernization of the Capital One Arena will be an invaluable investment for continued success and our future prosperity," Bowser said in a statement. "This proposal represents our best and final offer and is the next step in partnering with Monumental Sports to breathe new life and vibrancy into the neighborhood and to keep the Washington Wizards and the Washington Capitals where they belong – in Washington, DC."

Bowser said that the proposal has unanimous support from the D.C. Council.

When the Capitals and Wizards moved from suburban Maryland to D.C.'s Chinatown district in 1997 in what was then known as MCI Center, officials credited the arena with sparking a revival in downtown Washington.

In recent years, critics who have faulted city officials for lenient crime policies have said the neighborhood around the arena has suffered disproportionately.

According to statistics from D.C. police, homicides in the District have increased by 34 percent so far this year. Robberies are up 69 percent, motor vehicle theft is up 89 percent, and violent crime has increased 40 percent since the same time last year.