Article Summary –
Washington D.C. Mayor Muriel E. Bowser signed a $515 million deal with billionaire owner of the Wizards and Capitals, Ted Leonsis, ensuring the teams will stay at Capital One Arena until at least 2050. Bowser had initially faced criticism for failing to deliver a significant offer to Leonsis before he announced plans to move the teams to Virginia, but when those plans fell apart, she was able to renegotiate a deal. The deal includes an expanded footprint for Leonsis’s Monumental Sports & Entertainment at neighboring Gallery Place, improved security around the arena, and a boost to the city’s downtown business landscape.
Washington Teams Stay in DC, Bowser Wins Big
When billionaire owner of the Wizards and Capitals, Ted Leonsis, announced his intent to move his teams to Virginia in December, without signing any official agreements, DC Mayor Muriel E. Bowser saw an opportunity to keep the teams in the city. Despite a handshake agreement between Leonsis and Virginia Gov. Glenn Youngkin (R), Bowser was optimistic about DC’s chances.
Bowser didn’t sit idle; she quietly worked to draw Leonsis back to the negotiating table. Her persistence paid off on Wednesday when she announced a $515 million deal with Leonsis, keeping the teams at the Capital One Arena until at least 2050, in a major career accomplishment.
The deal offers Leonsis a more comprehensive package compared to the $500 million offer from Virginia, and includes plans for a significant expansion of Monumental Sports & Entertainment’s footprint at the neighboring Gallery Place by 200,000 square feet. This expansion will provide a considerable boost to the city’s downtown business landscape and strengthen security around the arena.
Despite criticism for her late deal offer, Bowser argues that it was the necessary catalyst for city leaders to develop a more focused approach. She acknowledged learning valuable lessons from her initial failure to keep Leonsis from considering a move to Virginia, which guided the city’s renewed strategies in keeping the teams.
Bowser and Leonsis’s negotiations restarted with a chance encounter at the Waldorf Astoria. The subsequent meetings helped to reestablish their relationship and paved the way for the DC deal as Leonsis’s plans in Virginia began to falter.
DC’s unifying approach ultimately appealed to Leonsis more than the political tensions in Virginia. This contrast was another significant reason for Leonsis’s decision to remain in DC. A series of events between February and March, including a new police hub near the arena and the $400 million Downtown Action Plan, helped to solidify DC’s advantageous position.
Virginia tried to salvage the deal with counteroffers when the $2 billion Potomac Yard arena plan was left out of the budget, but Leonsis remained unconvinced. The opportunity to develop an urban campus in the heart of downtown DC, incorporating the neighboring Gallery Place, was a crucial factor in the decision to stay.
The leasing space at Gallery Place will allow for new attractions for fans, while transforming the arena offices. This innovative partnership played a crucial role in finalizing the agreement to keep the teams in DC, marking a significant victory for Mayor Bowser.
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