• Loading stock data...
Friday, July 11, 2025

How D.C.’s Capital One Arena Deal Flies Against the Grain

  • The somewhat unusual agreement both codifies and furthers an arena renovation deal struck in the spring.
  • The pact is seen as the most efficient use of public funds to improve the venue.
Geoff Burke-Imagn Images

Monumental Sports & Entertainment founder and chairman Ted Leonsis is again going against the grain as he and the District of Columbia remake Capital One Arena. 

Seven months after Leonsis and the parent company of the NBA’s Wizards, NHL’s Capitals, and WNBA’s Mystics struck a surprise renovation deal with the District and abandoned a proposed $2 billion arena and mixed-use development in Virginia, D.C. mayor Muriel Bowser and the council there are now advancing legislation to purchase Capital One Arena and lease it back to Monumental. 

The $87.5 million deal will see Capital One Arena, which was privately owned as part of the Monumental portfolio, become publicly owned. Monumental will then lease the building back from the District, paying a minimum of $1.5 million until at least 2050, and it will retain venue operating rights. If lease extensions potentially going to 2070 are all exercised, Monumental’s annual lease payments will reach $3.3 million. 

The deal, however, differs from many other arenas around the country where teams increasingly prefer to have full ownership of the venue, even if it was originally built with taxpayer funds.  

The arena purchase price will be part of the District’s broader $515 million contribution toward the renovation of Capital One Arena. Leonsis and Monumental are committed to spending at least $285 million toward the project, which will dramatically remake the 27-year-old venue. 

Monumental is fully behind the arena sale-and-leaseback plan, and the legislation codifies several months of negotiations following the original renovation deal struck in the spring. The Capital One Arena renovations are due for completion in 2028. 

“This structure creates the most efficiency for the use of the public funds and have that go directly into the building,” Monica Dixon, Monumental chief administrative officer and president of external affairs, tells Front Office Sports. “It’s really about creating that efficiency and having the best operation possible of this public-private partnership.”

Bigger Vision

While the overall footprint of the remade Capital One Arena remains far smaller than the expansive project contemplated in the ultimately scuttled deal in Alexandria, Va., there are still plans to stretch beyond the current venue walls.

The overall D.C.-Monumental deal also includes an expansion of more than 200,000 square feet to the arena footprint into the neighboring Gallery Place, allowing Leonsis to get at least a portion of the additional space that was fundamental to the Virginia plan.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Jeff Kaplan

Letting PE Invest in Family-Owned Teams Is a ‘Watershed’

Liquidity gives owners greater flexibility to manage salary cap.
Jul 10, 2025; Las Vegas, NV, USA; Dallas Mavericks forward Cooper Flagg (32) dunks against the Los Angeles Lakers in the first quarter of their game at Thomas & Mack Center.

Cooper Flagg Makes Mavericks, New Balance Debut in Win Over Bronny

Thursday marked Flagg’s first game donning New Balance shoes.
Oct 27, 2024; Philadelphia, Pennsylvania, USA; A general view of the Wells Fargo Center before game between Philadelphia Flyers and Montreal Canadiens.

New Philly Arena Will Redefine Home-Court Advantage, CEO Says

The forthcoming venue will arrive with plenty of ambition among its owners.

Jalen Williams Signs Max Deal As Thunder Commit $822M to 3 Stars

Oklahoma City also extended Shai Gilgeous-Alexander and Chet Holmgren.

Featured Today

Rimouski, QC - JUNE 1: Final Game of the 2025 Memorial Cup between the Medicine Hats Tigers and the London Knights on June 1, 2025, at the Colisée Financière Sun Life in Rimouski, Qc.

CHL Is Facing a ‘Pandora’s Box’ of Questions Amid NCAA Talent Departure

As players defect to college, the Canadian Hockey League won’t cede ground.
Jun 28, 2025; Arlington, Texas, USA; Seattle Mariners catcher Cal Raleigh (29) bats during the game between the Texas Rangers and the Seattle Mariners at Globe Life Field.
July 9, 2025

The Torpedo Bat Business Is Still Going Strong: ‘Here to Stay’

Demand for the oddly shaped bats has stayed strong across the sport.
July 6, 2025

American Celebs Want to Be Sports Owners. Soccer Is Where They Start

As U.S. team prices climb, investors set their sights abroad.
July 5, 2025

Baseball’s Celebrity Row: Behind MLB’s First-Pitch Ritual

Often planned, sometimes spontaneous, the ritual throw is baseball’s celebrity row.
April 19, 2022; Austin, TX, USA; Tim Leiweke of the Oak View Group speaks at a ribbon cutting ceremony for the Moody Center, a multi-purpose arena that will be home to concerts and the UT basketball teams on Tuesday April 19, 2022.

Oak View Founder Tim Leiweke Indicted for Alleged Rigged Arena Bid

The longtime sports executive leaves his day-to-day leadership role.
July 8, 2025

Chiefs Delay Stadium Decision As Kansas Dangles Dome Dreams

Kansas legislators extend bonds for potential Chiefs and Royals facilities.
July 9, 2025

Browns $600M Stadium Deal Hit With Suit Over ‘Unclaimed’ Money

Ohio’s use of unclaimed funds for a new stadium is challenged legally.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
Jul 3, 2022; London, United Kingdom; Jannik Sinner (ITA) returns a shot during his match against Carlos Alcaraz (ESP) on day seven at All England Lawn Tennis and Croquet Club.
July 7, 2025

Wimbledon’s Expansion Battle Looms Over Star-Studded Quarterfinals

The expansion’s loudest opposition is Save Wimbledon Park.
July 2, 2025

Commanders’ $3.8B Stadium Deal in Jeopardy? Mayor Sounds the Alarm

Political tensions rise about delays in stadium funding approval.
July 1, 2025

$600M for Browns Stadium Sparks Cleveland Backlash, Possible Lawsuit

The awarding of public funds draws criticism and could bring a lawsuit.
June 29, 2025

The Battle Over Wimbledon’s Ambitious Expansion Plan

A classic NIMBY standoff on one of the most hallowed grounds in sports.