Washington, D.C. (Monday, October 21st) – Monumental Sports & Entertainment (MSE) Founder & CEO Ted Leonsis and D.C. Mayor Muriel Bowser announced today the introduction of legislation supporting the public-private partnership to recreate Capital One Arena as a new destination that will represent and reflect Washington D.C, as the most important city in the world and serve as a must-visit venue for fans regionally, nationally and globally. This is a massive investment in an existing Downtown arena which is expected to be delivered in time for the 2027-28 season. Monumental Sports is undertaking a 360-degree approach to planning towards a high tech, high-touched new building to continue its service to the millions of patrons who visit annually – and last for 25 years, serving the next generation. This includes a full redesign of entrances and exits, safety, lighting, traffic mitigation and public transportation in collaboration with terrific partners from the District, WMATA, MPD and many others.
“The delivery of a brand-new arena marks the next significant investment Monumental Sports is making in the revitalization of Downtown D.C., and we will build a best-in-class experience for fans, a world-class destination facility for athletes and continue to serve as a downtown anchor for economic vitality,” shared Leonsis. “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. We want to capture the magic that comes from providing the most entertaining experience – which every guest deserves.”
“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,” said Mayor Bowser. “We know that when our Downtown does well, our city does well. This catalytic investment is an investment in our residents and businesses in all eight wards.”
Monumental Sports remains committed to winning additional championships for the District, recognizing that nothing unites a community like winning teams. Under Leonsis’ leadership, the organization will build the premier, best-in-class fan experience for guests of Capital One Arena drawing from across the city, Virginia and Maryland, as well as from other states and globally, with the new arena serving as a tourism destination. Monumental’s growth mindset will drive increased revenues for the city while partnering with the Mayor and D.C. Council to build the ultimate world-class customer experience.
Submission of Legislation
In March 2024, Monumental Sports & Entertainment and D.C. Mayor Muriel Bowser signed a term sheet agreement for a transformative renovation and modernization of Capital One Arena and an expansion of Monumental’s business and hospitality operations into Gallery Place – creating a revitalized entertainment destination in Downtown D.C. – with the support of D.C. Council Chairman Phil Mendelson and the D.C. Council.
Less than a week later, on April 2, 2024, the D.C. Council voted unanimously to invest $515 million over the next three years to support the total $800 million project of a fully-modernized and future-focused Capital One Arena.
This legislation serves as the final step in the process whereby the D.C. Council will vote on the Lease, Development and Financing Agreement, and Purchase and Sale of Real Property between Monumental and the District which codifies the term-sheet shared in March for this public-private partnership. The legislation submitted is posed in the requisite legislative language and will be considered by the Council this fall.
Design Inspiration
Best-In-Class Experience for Fans: The new arena concepts reflect an attention to detail for a better fan experience across the interior of the arena – from the moment of arrival until departure. This includes an expanded main entrance at F Street to ease the flow for fans before and after events. Wider concourses and more elevators and escalators are designed so guests can move from space to space faster and more efficiently. And there are plans for approximately 65% more concession space, 30% more restrooms and an expansive new food and beverage experience appealing to the widest array of tastes and showcasing varied cuisines.
World-Class Facility for Athletes: The athlete spaces will grow more than 60% and will include state-of-the-art on-site training rooms, a new player’s lounge and dining space as well as a family lounge for the player’s extended family, doubling the current size. The Washington Capitals will have a new film room in their locker room space, and the Wizards will have a redesigned, on-site training facility, which currently is not possible due to space constraints. Visiting teams will also benefit from improved facilities.
Expanded Back-Of-The-House Capacity: In addition to reimagining the fan and athlete experience, the expansion into Gallery Place – encompassing over 200,000 square feet of space, including below ground, on the event level – provides Monumental’s hospitality staff and back-of-the-house operation the ability to expand their workspace, delivering a more comfortable employee experience. Additionally, the expansion will locate the kitchens closer to where guests will enjoy the assembled food and allows more items to be created on site, maintaining freshness.
This investment in a fully-modernized and expanded arena demonstrates Monumental Sports and Ted Leonsis’ continued investment in the ongoing revitalization of Downtown D.C. It will serve as a major economic draw for the dozens of businesses, hospitality areas, hotels, bars, and restaurants in the many square blocks around the arena which draw customers from the arena’s nearly 3 million annual visitors. Under Mayor Bowser’s leadership, a clear vision for maximizing connectivity across neighborhoods for a shared sense of prosperity has emerged, and Monumental Sports is proud to partner on this work to serve the next generation of fans for the next quarter century at Capital One Arena.
The newly designed Capital One Arena promises lasting economic benefits for the greater D.C. region. This investment will generate hundreds of construction jobs, provide meaningful subcontracting opportunities for Certified Business Enterprises (CBEs) and local companies, and offer new career pathways and training for D.C. residents. Upon completion, the new arena’s impact will extend beyond sports and entertainment, contributing to the long-term vitality and economic health of this community.
District of Play
Monumental Sports commitment to the health and vibrancy of this arena, neighborhood, and city is evidenced by the most ambitious charitable effort the company has ever undertaken: District of Play. Announced recently, this multi-million-dollar investment is designed to break down the barriers which prevent kids in D.C. from playing sports by providing safe play spaces, empowering players and engaging parents, coaches and the community. Monumental’s plan is to transform access and opportunity in youth sports as Capital One Arena undergoes its own transformation.
Summary of Amended and Restated Lease
Ownership Structure/Sale and Leaseback Arrangement: Monumental Sports will sell Capital One Arena to the District for $87.5 million, Monumental Sports will immediately lease it back from the District under an amended and restated lease, and Monumental Sports will operate the arena as it has been doing (a “Sale/Leaseback”). This sale/leaseback arrangement is a well-known structure and allows the District to own both: (i) the arena and the improvements funded by its public investment now instead of when the term of the lease concludes (which would have always been the case), and (ii) the ground beneath the arena, which the District has always owned.
Lease Summary:
•Term: The amended lease agreement extends through June 30, 2050, with Monumental Sports holding five four-year extension options, potentially extending the lease to 2070. To exercise each extension, Monumental Sports must provide notice at least 12 months before the then current term expires.
•Non-Relocation Covenant: The lease includes a non-relocation covenant, meaning the teams cannot consider relocation options until June 30, 2045. From June 30, 2044, to June 30, 2045, the District has an exclusive right to negotiate with Monumental Sports to extend the lease. After this period, Monumental Sports may engage with other jurisdictions without restrictions.
•Financial Commitments and Rent Structure: Monumental Sports’ rent structure will remain the same as under the current lease whereby Monumental Sports pays annual rent with the periodic escalations. The annual rent starts at $1.5 million. If all renewal options are exercised, rent will reach $3.3 million in the final renewal term.
Development and Financing Agreement
The District commits to a total contribution of $515 million towards the arena’s redevelopment, allocated approximately as follows:
• $87.5 million for purchasing the arena property, paid at closing. (MSE will in turn reinvest these proceeds to the project.)
• $84.3 million available upon execution of the agreement.
• $171.8 million available by October 30, 2025.
• $171.3 million available by October 30, 2026.
Monumental Sports will contribute at least $285 million plus the $87.5 million arena sale proceeds and is solely responsible for any cost overruns. The project budget and any amendments are subject to mutual agreement, with disputes resolved through negotiation or arbitration.
• Alterations, Improvements: Monumental Sports must obtain the District’s consent for any significant extensions or exterior alterations to the arena. For major construction projects impacting structural elements, like the upcoming renovations, Monumental Sports will ensure that contractors secure payment and performance bonds covering the full cost.
• Community Engagement: Monumental Sports plans to continue to work with Advisory Neighborhood Commission 2C and other local groups, presenting design updates and soliciting feedback beginning this fall. This is consistent with the intent for the arena’s new development to align with community goals and contribute to the revitalization of downtown.
• Labor Agreement and Local Economic Impact: The renovation project will have a Certified Business Enterprise (CBE) and First Source employment program and will promote local business participation and prioritize District residents for job opportunities. A Project Labor Agreement will be in place to ensure fair labor practices.
• Community Benefits: District of Play is Monumental Sports’ most ambitious youth sports initiative to date, ensuring that we leave a positive and lasting legacy for D.C.’s children. Our multi-million-dollar investment reflects our commitment to the city’s future. We are partnering with community leaders, coaches, and organizations to refurbish sports facilities, remove economic barriers, and offer inclusive programming across the District. From court and rink renovations to providing scholarships and equipment, our goal is to ensure that every young person, regardless of their circumstances, has the opportunity to participate in sports and enjoy the physical, mental, and emotional benefits that come with it.
• Timeline for Completion: Monumental Sports will begin construction as soon as practicable. During the Washington Wizards’ and Washington Capitals’ seasons, construction will occur primarily in behind-the-scenes areas. During the offseason/summer months, the arena will be closed and construction will occur throughout the arena. The new arena is expected to be complete for the teams’ 2027-28 season.
Commitment to the Environment & Sustainability
• Championing Carbon Reduction Through Innovation: By retaining most of the arena’s existing structural system, this redesign will limit unnecessary carbon output. This avoids environmental impacts from both operational carbon, produced during a building’s use (like energy for heating and cooling), and embodied carbon, which encompasses emissions from construction materials and processes. This project will incorporate high-performance glazing that not only enhances aesthetics but also optimizes natural light and temperature regulation. Additionally, energy-efficient lighting systems will illuminate events without excessive energy use. Monumental Sports is committed to reducing the pull from the energy grid without compromising the experience.
• Water Stewardship: Innovative Stormwater Management: In addition to efficient fixtures the arena will feature advanced on-site rainwater retention systems, capturing rain that falls on-site to avoid overwhelming the city’s stormwater infrastructure. This proactive approach helps keep regional waterways clean, reduces pollution and the risks of flooding—benefits rippling beyond this project. As part of the design, there will be landscaped elements that filter runoff and support the local ecosystem.
• Verifying Our Commitment with LEED Certification: Monumental Sports is pursuing LEED (Leadership in Energy and Environmental Design) certification—a globally recognized symbol of sustainability excellence and disclosing our Energy Consumption through the city’s BEPS (Building Energy Performance Standard) program. LEED evaluates buildings on criteria like energy use, air quality, waste reduction, and transportation impacts while BEPS focuses on reducing energy consumption and carbon emissions.
Since taking over operation of Capital One Arena in 2011, Monumental Sports has spent over $200 million to maintain an exceptional fan experience – and Monumental Sports anticipates spending at least $285 million more on this new arena – on top of the funding to be contributed by the District. In sum, this project will include more than $800 million of new investment to deliver a transformed arena which the fans, athletes and this region deserve.
The early interior concept renderings released alongside the legislative submission are intended to spark the community’s imagination and provide a preview of what the investment and new arena will bring – final, more detailed plans will be released once complete.
