The NBA’s Washington Wizards and NHL’s Washington Capitals plan on moving to a proposed new arena in suburban Virginia in 2028, ownership group chairman Ted Leonsis announced on Wednesday.
The $2 billion deal would see an entertainment district constructed at Potomac Yard in Alexandria, about four miles south of the current home arena for the clubs, Capital One Arena in the heart of the nation’s capital.
The public-private partnership outlined in a framework agreement must still be approved by state and city lawmakers, with a planned groundbreaking in 2025 and the arena to open in late 2028, according to Virginia Governor Glenn Youngkin.
Team owners Monumental Sports and Entertainment (MSE) would contribute $403 million to the project, Youngkin said, touting a $12 billion predicted economic impact to the state over the next few decades.
“We’re committed to providing world-class fan experiences while continuously evolving our teams, deepening community ties, and solidifying our role as leaders at the forefront of sports and technology,” Leonsis said.
The project would include the arena, a new Wizards practice facility, a 6,000-seat concert and performing arts venue, new MSE corporate offices and media studio space, an E-sports facility, underground parking, restaurants, a hotel and a convention center.
“This is the most visionary sports and entertainment development in the world,” Youngkin said.
The plan follows several project neighborhoods constructed around new US sports venues.
Leonsis wants the team’s current arena in the Chinatown neighborhood of Washington to be renovated into a unique venue with a flexible capacity between 10,000 and 20,000 seats that would serve as the new home of the Women’s NBA’s Washington Mystics and could still host music and sports events.
“We’re working to build a lasting legacy over multiple generations,” Leonsis said.
Leonsis had pushed for $600 million in updates to Capital One Arena. Local Washington lawmakers had introduced plans for a $500 million investment in renovations for the current arena in exchange for a lease extension.
The teams can end their lease in 2027 by paying off a bond for about $36 million.
The current arena opened in 1997, bringing both clubs downtown from a suburban venue in Maryland. Among NBA team home venues, the arena ranks as the ninth-oldest.
Since 1997, the Wizards have never advanced beyond the second round of the NBA playoffs. At 3-19 this season, the Wizards are on pace for their sixth consecutive losing season.
In the same span, the Capitals won the Stanley Cup in 2018 and also lost in the 1998 Stanley Cup Final. With 14 wins in 25 games this campaign, the Caps are level for the last playoff spot in the Eastern Conference.
The move comes as the NFL’s Washington Commanders entertain pitches for a new home stadium. The team’s current stadium was built in 1997 and projects are expected to again pit Washington and Virginia officials against each other in bids for relocating the team within the US capital market.