In a move to transform downtown Washington, DC’s government has unveiled plans to purchase Capital One Arena for $87.5 million as part of a larger $515 million investment in the city’s entertainment district. The deal would ensure the Washington Capitals and Wizards remain in the nation’s capital through at least 2050.
“We’re keeping Washington’s teams where they belong – here in the Sports Capital, and we’re doubling down on having a world-class destination and entertainment district in the center of DC,” Mayor Muriel Bowser announced, emphasizing the project’s significance beyond sports. “We know that when our Downtown does well, our city does well.”
The comprehensive agreement includes an innovative lease-back arrangement, where Monumental Sports & Entertainment (MSE), after selling the arena to the District, would lease it back for $1.3 to $2.5 million annually. The deal includes options that could extend the teams’ presence for an additional twenty years beyond 2050.
Ted Leonsis, CEO of MSE, outlined an ambitious vision for the facility: “Our vision for a wholly re-imagined sports and entertainment destination will be ambitious, reflective of our community, and designed to ‘wow’ our most ardent supporters as well as casual fans.”
The project’s economic impact extends beyond the arena itself. Officials project it will create approximately 4,900 construction jobs and generate over $1 billion in economic activity. The agreement mandates a minimum 35% participation from Certified Business Enterprises (CBE), with aspirations to reach 50%.
DC Council Chairman Phil Mendelson expressed support for expediting the process: “The Council is going to move expeditiously to make sure that this bill has a public hearing, that the public gets to fully see the transaction, and that we will get this done by the end of this year.”
The redevelopment initiative coincides with MSE’s launch of “District of Play,” a community investment program aimed at expanding youth sports access throughout DC. This multi-million-dollar charitable initiative focuses on creating safe play spaces and empowering local youth sports programs.
If approved by year’s end, design work could begin this winter, with construction scheduled to start in early summer 2025. The $87.5 million purchase price will be reinvested directly into the project, contributing to the facility’s modernization and the broader revitalization of the Gallery Place-Chinatown neighborhood.
Local officials view the investment as crucial for maintaining the district’s status as a premier entertainment destination while supporting businesses and residents across all eight wards.
For businesses interested in participating in the Capital One Arena project, Clark Construction, MSE, and the District Government have scheduled an outreach event focusing on recruiting trade and construction partners, particularly targeting CBE participation in the arena’s transformation.
The legislation, which follows a unanimous Council vote in June 2024 approving the budget appropriation, now awaits final approval to set this ambitious redevelopment plan in motion.
