Apr 2, 2024 - News

Scoop: Inside the Capital One Arena deal terms

Muriel Bowser and Ted Leonsis shake hands

Monumental Sports CEO Ted Leonsis with Mayor Muriel Bowser after signing an agreement on the court before a Washington Wizards game last week at Capital One Arena. Photo: Jess Rapfogel/Getty Images

The Washington Capitals and Wizards owner would be exempt from future taxes benefitting another professional sports franchise under one of the many perks in last week's Capital One Arena agreement, according to a copy obtained by Axios.

Why it matters: While not final, the agreement — which hasn't been released publicly nor shared with lawmakers since last Wednesday's announcement — shows what Mayor Muriel Bowser was willing to concede to keep the teams in town.

Driving the news: The D.C. Council is set to vote today on Bowser's $515 million deal with Monumental Sports and Entertainment founder Ted Leonsis.

The intrigue: The tax provision would benefit Monumental if — theoretically — the city were to impose a new tax that would help fund, for example, a new Commanders football stadium.

👀 Plus: Monumental will determine within 30 days of the agreement whether it is "economically and operationally viable" to build a new Wizards practice facility at the neighboring Gallery Place center.

  • But if that doesn't materialize, D.C. will identify another city-owned location, "including the site commonly known as the RFK Stadium," according to the document.

Between the lines: D.C. also agrees to appoint a senior government official called an "MSE Ambassador" to work with Monumental to "ensure seamless project approvals, reviews, issue resolutions, and other assistance."

  • The agreement calls for D.C. to make staff available to "expedite all approvals" for design work and permits.

The fine print

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