The Washington Wizards and Capitals are contractually obligated to remain at Capital One Arena until 2047, according to a letter from the D.C. attorney general to the teams’ owner.
This poses a challenge for Monumental Sports & Entertainment, who have been trying to relocate the teams to Alexandria, Virginia. The move has faced obstacles in the Democratic-controlled Virginia legislature.
Attorney General Brian Schwalb disputed Monumental’s legal conclusion that the proposed move would not violate its obligations to the district.
He argued that Monumental cannot terminate the lease by prepaying its bond debt and pointed to a commitment made in 2007 to extend the ground lease through 2047.
Schwalb also accused Monumental of breaking other promises to the District by negotiating an agreement with Virginia.
REPORT: Washington DC’s attorney general will not permit the Wizards to move to Virginia.
The Wizards must remain in DC until at least 2047.
(via @broadcastben_) pic.twitter.com/wUnXo55Xt0
— Legion Hoops (@LegionHoops) March 22, 2024
Schwalb urged Monumental’s owner, Ted Leonsis, to meet with D.C. officials. Meanwhile, D.C. Mayor Muriel Bowser confirmed that the city’s $500 million offer to modernize Capital One Arena is still on the table.
Monumental maintains that its negotiations with the city and Virginia were conducted with sound legal counsel. The proposed relocation to Alexandria has faced opposition from Virginia lawmaker Sen.
Louise Lucas, who has expressed concerns over funding the $2 billion arena.
The letter from the D.C. attorney general is the latest effort to prevent the Wizards and Capitals from leaving the downtown arena. It cites the 2007 bond agreement and emphasizes the district’s commitment to maintaining its partnership with Monumental until the end of the current lease term in 2047. The district hopes to reach a mutually beneficial arrangement that serves both parties’ long-term interests.
Officials who have offered $500 million in public funds to upgrade the downtown arena.
Monumental disagrees with Schwalb’s opinions and argues that D.C. officials signed an amendment in 2019 affirming changes to the ground lease that would allow them to opt out of the lease extension. They also mentioned a 2007 amendment that allows them to revoke the extension with 120 days’ notice.
In addition to the legal dispute, Monumental is facing opposition in Virginia, where they plan to build a new arena in Alexandria’s Potomac Yard. Virginia Senator L. Louise Lucas has been vocal in her opposition to the arena deal and has pointed to D.C.’s accusations as one of the reasons for her lack of support.
Meanwhile, D.C. Mayor Muriel E. Bowser and D.C. Council Chairman Phil Mendelson had offered Monumental $500 million in public funds to upgrade Capital One Arena, but the company had already made a deal with Virginia Governor Glenn Youngkin to build a new arena.
The future of the arena plans and the legal dispute remains uncertain, but it could become a major issue for Monumental and its owner, Ted Leonsis, as they navigate challenges in both D.C. and Virginia.
The ongoing lease disagreement between Washington, D.C. Mayor Muriel E. Bowser and Monumental Sports & Entertainment (MSE) owner Ted Leonsis over Capital One Arena has escalated. Bowser has insisted that Leonsis accept the city’s offer of millions for arena upgrades in order to avoid legal action or breached agreements. The dispute originates from a 2007 lease extension when $50 million in public financing was used for improvements.
The agreement allowed Monumental to “opt out” of the extension if bond financing was repaid early, a course of action they plan to take. However, Bowser argues that the 2007 legislation binds Monumental to a lease extension. In an attempt to resolve the issue, MSE’s general counsel proposed a meeting focused on restarting negotiations to keep the Wizards and Capitals in the city until at least 2047.
Meanwhile, complications in Virginia pose additional challenges to Leonsis’ plans to relocate the teams. Although an attempt to include the arena in the state budget failed, it may be revisited through a budget amendment or a separate bill in the future.
Fans reacted as follows:
Let them move a re brand is obviously needed 🤦♂️
— ɪᴍ.ʀɪʟᴇʏ シ ✞ ☘️ (@CookedByRiley0) March 22, 2024
why this sound more like a sentence then an accomplishment 😂
— tone (@___undertone) March 22, 2024
For those who don’t understand – They have a Bond (Debt) contract with D.C and the Attorney General is saying even if they pay it off early, you have to stay until the end of the debt contract.
This likely won’t hold up in court, once the bonds are paid off the contact is done.
— Supermax Bets💸💸 (@SuperMaxBets) March 22, 2024
as it should be. games should be in DC not some stinky virginia suburb
— Nao! (@hard4TRUMP) March 22, 2024
They’re not gonna make the finals until at least 2047 too possibly 2051
— Chris Reilly (@C_Reilly5) March 22, 2024
If they have to stay in DC they should rebrand to the Bullets or something. Jerseys could look like this. pic.twitter.com/iNKhN15OAY
— Stratton (@StrattonH) March 22, 2024
How the heck does the attorney general get to make that decision lol
— Dr. Karlos L. Marshall (@KarlosLMarshall) March 22, 2024
