Capitals' ownership interested in move to proposed arena in Virginia

ALEXANDRIA, Va. -- Washington Capitals owner Ted Leonsis and Virginia governor Glenn Youngkin announced Wednesday that Monumental Sports & Entertainment has reached the framework for an agreement to move the Capitals into a new state-of-the-art arena and entertainment district to be built at Potomac Yard in Alexandria by 2028.

The project, which includes the NBA’s Washington Wizards, is pending legislative approval and formalization of the deal.

“We want to build the most fan-friendly experience,” Leonsis said. “We want to build our brand and our business and, frankly, I’ve tried to build my career on being first and being an innovator. … I got goosebumps again when we came here a week ago and just looking out at all of the expansion capabilities: on water with the (Ronald Reagan Washington National) airport across the street and a brand-new Metro stop. That primordial set of ingredients can really create what we think we can build really the exemplar new experience and we’ll see we’ll be very on trend because this is what we’ll have to do in professional sports.”

The $2 billion project, to be developed by JBG Smith, will include the arena for the Capitals and the Wizards, a new Wizards practice facility, the corporate headquarters for Monumental Sports & Entertainment, Monumental Sports Network’s media studio, a 6,000-seat performing arts venue and an esports facility in addition to restaurants, retail stores and a conference center.

“This visionary sports and entertainment development district will bring together entertainment, sports and technology like nowhere in the world,” Youngkin said. “This once-in-a-generation historic development will be the best place to live, work, raise a family and watch hockey and basketball.”

In an appearance on ESPN on Tuesday, NHL Commissioner Gary Bettman noted that the new arena will be only four miles from the Capitals’ current home, Capital One Arena, in downtown Washington.

“It may be a great opportunity to have an incredible, forward-looking fan experience that’s new age and takes care of new technology and new experiences and something that could be very special,” Commissioner Bettman said.

Monumental Sports & Entertainment owns Capital One Arena but leases the land it is on from Washington. Leonis said if the plans for the Potomac Yard sports and entertainment district are approved and the Capitals and Wizards move to Alexandria, the current home would be utilized as home for the WNBA’s Washington Mystics, concerts and college sports events.

“My belief is that at Capital One Arena we can host women’s sports,” Leonsis said. “We’ve invested $200 million in the last 10 years in keeping Capital One world class as an arena and our intention is to expand here and keep Capital One Arena in Washington, D.C. a great place. We’ll host concerts there. We’ll have a 6,000-seat entertainment performance center here and this community is so vibrant, you just have to look at other great cities.

“In New York, you have arenas in Brooklyn (Barclays Center) and Long Island (UBS Arena) and Manhattan (Madison Square Garden) and they’re all working. That’s what our promise is here, and we can be an economic engine.”

Youngkin said the sports and entertainment district would “anchor our innovation corridor with Amazon HQ2 at one end in Arlington (and) the innovation campus from Virginia Tech and the sports and entertainment district right here, home to the Washington Capitals and Washington Wizards.”

According to Youngkin, there are remaining legislative hurdles to be cleared and plans to be developed for transportation improvements to support the sports and entertainment district, but he expressed confidence the project will receive approval, clearing the way for the Capitals and Wizards to move to Potomac Yard.

“This is the exact same process we undertook with HQ2, which is an agreement, a very formal handshake and understanding, but recognizing that we do need to finalize everything with our general assembly,” Youngkin said. “We had a unanimous vote [Monday] from our most important committee, which is our committee on major employment and investments. That was unanimous, it was enthusiastic and that sets the stage for a very productive general assembly session where we will, of course, finalize all the transportation plans to make sure that we have great access and that we have the kind of innovation and the kind of sports and entertainment district that represents Virginia.”

Though the Capitals and Wizards would play their games in Virginia, Leonsis said they would remain a vital part of the community in Washington and nearby Maryland. The Capitals played their home games at the Capital Centre/U.S. Air Arena in Landover, Maryland, from 1974, when they entered the NHL as an expansion team, until moving to Capital One Arena (then known as MCI Center) in 1997. The Wizards played at Capital Centre/U.S Air Arena from 1973-97.

“It’s no secret that this great airport here is considered Washington National, yet it’s in Virginia,” Leonsis said. “You have so much contribution to what this community is about and 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.”