Bowser, Leonsis announce massive Capital One Arena remodel, lease to keep teams in D.C. through 2050

Capital One Arena is getting an $800 million makeover.

D.C. Mayor Muriel Bowser and Ted Leonsis, the owner of the Washington Wizards and Capitals, announced plans Monday to revitalize the aging arena and a new lease to keep the teams in the District through 2050.

The proposal, which needs to be approved by the D.C. Council, would use $515 million in public funds to give the arena a glitzy facelift before the 2027-28 seasons. The legislation would also allow Leonsis’ Monumental Sports and Entertainment to sell Capital One Arena to the city for $87.5 million and immediately lease the site.

“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,” Bowser said in a news release. “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.”

The remodel would see completely redesigned entrances for fans, fresh lighting throughout the concourse, expanded facilities for athletes and additional back-of-house space for the site’s hospitality staff. Monumental’s plan would create wider concourses to prevent congestion, a 65% increase in concession space and 30% more restrooms.

Wizards and Capitals players will enjoy a new family area, a player’s lounge, and medical training rooms after the renovations. The Wizards will have an on-site training facility, while the Capitals will add a film room to their locker room.

“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,” Leonsis said in a statement. “We want to capture the magic that comes from providing the most entertaining experience, which every guest deserves.”

The city council unanimously approved a $515 million investment in the arena in April after Monumental’s plan to move the teams to Virginia died in the state legislature. Leonsis’ company plans to invest an additional $285 million to complete the renovations.

In a letter to Chairman Phil Mendelson, Bowser estimated that the remodel would create 4,900 construction jobs and $21 million in tax revenue for the city.

Under the new lease, the Wizards and the Capitals would remain in D.C. until at least 2050. Monumental and the city would also have five, four-year extension options that could keep the franchises at Capital One Arena until 2070.

For fans, the lease would end relocation worries until at least 2045. The agreement features a “non-relocation covenant” that would prevent a repeat of last year’s attempted move until the lease nears its end.

With Monumental selling the arena to the city, the company would be subject to a yearly rent. In the plan submitted by Leonsis and Bowser, the company’s annual rent would start at $1.5 million per year. If the Wizards and the Capitals stick around, the rent would reach $3.3 million for the final four years.

The budget for the arena overhaul would see the District spend $87.5 million to purchase the property, invest $84.3 million when the agreement is executed, and submit another $171 million in 2025 and 2026.

Monumental will be responsible for any budget overruns.

“The delivery of a brand-new arena marks the next significant investment Monumental Sports is making in the revitalization of Downtown D.C.,” Leonsis said. “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.”

Construction would start “as soon as practicable,” officials said. During the NBA and NHL seasons, work will focus on behind-the-scenes areas to minimize disruptions. The arena would be closed during their offseasons for more obstructive renovations. 

“We have the best fans in the country, and we want them to have an arena that makes them proud, and that they deserve,” Leonsis said in a video announcing the plan.

The city council is expected to vote on the proposal this fall.