It was announced on Wednesday that the Washington Wizards and Washington Capitals teams will move from downtown Washington, D.C., to Northern Virginia by 2028, according to statements from Ted Leonsis, the billionaire majority owner of both teams, just days after state lawmakers agreed to build a $2 billion sports and entertainment complex in Alexandria.
Main Information
Leonsis, the principal owner of the Washington Wizards basketball team and the Washington Capitals hockey team, stated in a press release that the deal still depends on approval from the Virginia state legislature early next year, but is otherwise nearly certain.
The plan is to transform a 70-acre site in Virginia into a massive campus that includes a global headquarters for Leonsis’s company, Monumental Sports & Entertainment, a state-of-the-art arena for both teams, a media studio, a training center, a performing arts center, an esports center, retail shops, and restaurants.
The current Washington facility in downtown Washington, D.C., Capital One Arena, will be renovated and will continue to be used as the home for the Washington Mystics women’s basketball team, which Leonsis also owns, and as a performance venue for 10,000 to 20,000 people.
Potential Impact of Moving to Virginia
The move to Virginia could be a devastating economic blow to Washington, D.C., and the Penn Quarter area that hosts Capital One Arena, according to a report published by The Athletic, as the region’s economy heavily relies on game night attendance to sustain businesses, restaurants, and hotels.
Late Tuesday night, Washington, D.C. Mayor Muriel Bowser revealed an emergency plan to allocate $500 million for renovations to Capital One Arena aimed at “keeping the Washington Wizards and Washington Capitals where they are,” as Leonsis previously stated he would keep the teams in Washington if the city provided him with $600 million to fund the estimated $800 million renovation project, but later confirmed he would move forward with plans to relocate to Virginia.
Background Information
The Washington Wizards basketball team was first established as the Chicago Packers in 1961, then moved to Maryland in 1963 where it became the Baltimore Bullets. The team relocated to Washington, D.C. in the 1970s and was renamed the Washington Wizards in 1997. The team has won only one championship title in 1978. The Washington Capitals ice hockey team was founded in 1974 as an expansion team and has never moved to another city. The team has won 13 division championships, two conference championships, and one Stanley Cup. The Washington Mystics women’s basketball team began its first season in 1998 and has qualified for the WNBA playoffs in 13 of 23 seasons. The team won one championship in 2019 and has no conference titles. Leonsis acquired all three teams from former owner Abe Pollin. He bought the Capitals in 2000, the Mystics in 2005, and the Wizards in 2010 after Pollin’s death.
Forbes Valuation
Leonsis’s net worth is estimated to be around $2.8 billion, ranking him as the 1119th richest person in the world as of Wednesday. He built his fortune as a senior executive at AOL and was a founder of Revolution Growth, a venture capital firm led by AOL founder Steve Case. Leonsis runs a blog called “Ted’s Tech” where he comments on sports and business, and he lives in a Maryland home that was previously rented by President Franklin Roosevelt and Joe Kennedy, the father of President John F. Kennedy.
Forbes estimates the Washington Wizards’ value as the fourteenth most valuable NBA basketball team at $3.5 billion. The team’s value has increased by 10% from fall 2022 to October 2023, generating an operating income of $85 million. The Washington Capitals were ranked as the ninth most valuable NHL hockey team in 2022, valued at $1.2 billion.
Reading
Additional
Monumental Sports partners with Virginia and regional leaders to expand proposed business in Alexandria – Monumental Sports
The Athletic reveals plans by Leonsis to move the Washington Wizards and Washington Capitals to Virginia
More from Forbes: Leonsis sees the value of the Washington Wizards and Washington Capitals rise in the sale of a minority stake to a fellow billionaire
More from Forbes: Leonsis outmaneuvers his competitors in the Washington Nationals deal by purchasing the regional sports network
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