Monumental Sports and Entertainment is furloughing more than one-third of its staff due to the financial difficulties caused by the coronavirus pandemic, according to a new report. The ownership group of the Washington Capitals, Wizards and Mystics put 232 of its approximately 600 full-time employees on indefinite furlough.
Owner Ted Leonsis informed employees of the news in a company-wide email. The furloughs will affect all departments, including game-day operations, sales, marketing and community relations.
In the email, Leonsis wrote that all affected workers would be paid for the next 60 days — through Oct. 16 — and also have their health, vision and dental benefits paid for during the duration of their absence.
The cost-cutting measures came five months after the NBA and NHL halted its seasons. While play has resumed in host cities, fans are still not allowed in stadiums and it is not known when they’ll be permitted to return — creating financial uncertainties during the pandemic.
“The reason we have chosen a furlough instead of a layoff is rooted in my confidence that our business will return to hosting events with fans at our venues and with that, we hope to bring back impacted employees,” Leonsis wrote to employees.
This is also the latest step from Monumental as it tries to reduce costs. The company had previously imposed a 20% pay cut for those making more than $75,000 per year. Leonsis and his ownership group also suspended their compensation.
The pandemic has taken a “huge toll” on its revenue, chief administrative officer and president Monica Dixon said in a statement. Since March 12, when the NBA’s season stopped, the company has seen 75 games, concerts and events at Capital One Arena canceled or postponed, she said.
The Washington Post first reported news of the company’s furloughs.
Across sports, other ownership groups have taken similar measures. MLB’s Texas Rangers indefinitely furloughed 12% of its employees — just under 60 people — last month due to no fans in the stands, joining the Los Angeles Angels, Miami Marlins and Oakland Athletics in taking action.
The NBA’s Sacramento Kings implemented a four-month furlough for one-third of its full-time workers in June. Others have resorted to pay-cuts, partial furloughs and layoffs.
In his email, Leonsis said the company was unable to plan “with any confidence” about upcoming seasons and 2021. He added the District has not progressed as he had hoped for reopening. He said the furloughs were a “painful additional step.”
The District remains in Phase 2 of its reopening plan, which forbids mass gatherings of more than 50 people.
“We are still in unknown territory, and after five months, we still cannot predict when or how this pandemic will end,” Leonsis wrote. “Instead of showing signs of recovery, the economy continues to deteriorate, impacting more and more layers of our industry and our company, including our media partners, sponsors, season ticket members, suite holders and other vendors.
“It appears that the sports industry, a major driver for local economies and arguably the largest convener of mass gatherings in social settings, will be among the hardest hit and the last to recover. “
• Matthew Paras can be reached at mparas@washingtontimes.com.
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