A previous version of this story inaccurately reported that the Capital One Arena mortgage had a remaining balance of $35 million. The correction clarifies that this amount refers to the principal remaining on the bond for the arena ground lease. The story has been updated to reflect this correction.
In the coming weeks, the NFL is expected to approve Josh Harris’s acquisition of the Washington Commanders, sparking a competition among D.C., Maryland, and Virginia for a new stadium. While D.C. Mayor Muriel E. Bowser has advocated for the Commanders’ return to RFK Stadium, tensions have arisen between the District and the professional sports teams already based there.
Monumental Sports & Entertainment, the owner of the Washington Capitals, Wizards, and Mystics, as well as the Washington Nationals, have separately engaged with city government officials about funding for necessary facility improvements. Additionally, Monumental executives have explored the possibility of relocating the Capitals and Wizards to Northern Virginia near Amazon’s new HQ2. These discussions are considered preliminary and exploratory.
Ted Leonsis, Monumental’s founder and CEO, along with Monica Dixon, the company’s president of external affairs and chief administrative officer, met with D.C. Council Chairman Phil Mendelson to discuss concerns regarding Capital One Arena. The focus of the conversation was on costly improvements that they hope the city will contribute to as an investment in the struggling downtown area. While the city is not obligated to fund these upgrades, they had previously invested $50 million in 2007 for capital improvements to the arena.
The Nationals have also been in discussions with Events DC, the operator of Nationals Park, regarding funding for capital improvements such as a new scoreboard/video screen and energy-efficient stadium lights.
As D.C. competes for the RFK site and considers the Commanders’ future, they must also weigh requests from Monumental and the Nationals within their budget limitations.
Monumental has expressed concerns about the financial burden of owning Capital One Arena and has complained about the city’s lack of investment in the building. They completed a $70 million privately funded renovation project in 2019 but believe that further structural work is required. The arena’s HVAC systems, ice-cold mechanisms, and ceiling also need attention for hosting larger events.
Although negotiations between the city and Monumental are ongoing, the overall sentiment from both parties is positive in terms of collaboration and supporting the arena as an economic driver for downtown.
The Nationals, on the other hand, have had discussions with the city operator about funding capital improvements for Nationals Park. The relationship between the Nationals and Events DC is still being navigated, and the city’s decision regarding the RFK site will require careful consideration of financial limitations.
In downtown D.C., Monumental has been expanding since Ted Leonsis bought the Capitals in 1999. However, Leonsis has voiced dissatisfaction with paying the mortgage on Capital One Arena, which costs him an estimated $36 million annually. The possibility of leaving the city after paying off the mortgage has been mentioned in the past.
Monumental also faces the challenge of a ground lease, as the city owns the land below the arena building. The lease was extended until 2047 in exchange for a $50 million investment in 2007. However, if the bond on the lease is paid in full, the lease extensions become nullified, and the original end date would revert to 2027.
If Monumental were to relocate to Virginia, they would join the National Landing neighborhood that Amazon has already begun transforming. This move would be significant for the economic development of Arlington County and could be a win for Gov. Glenn Youngkin.
Monumental emphasized its investments in Capital One Arena and its commitment to ongoing improvements. They have invested $125 million since 2010 and plan to invest over $80 million this year for office space, state-of-the-art broadcast studios, and infrastructure upgrades. The company supports Mayor Bowser’s Downtown Action Plan and aims to provide the best fan experience for the next 25 years.
In Navy Yard, the Nationals have utilized the Ballpark Revenue Fund, established in 2005, to cover certain costs related to the team’s presence in the neighborhood.
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