Would They Still Be The Capitals?

In the NHL's history, we've seen a number of teams relocated to different cities for various reasons. There are the obvious franchise moves where teams move to new cities like the Winnipeg Jets moving to Phoenix, the Quebec Nordiques moving to Denver, the Hartford Whalers moving to Raleigh, and the Atlanta Thrashers moving to Winnipeg. In all of these cases, the reasons for leaving were all similar in the potential of greener pastures - green, of course, being the colour of money - as teams looked to get out from poor financial realities that affected how they did business. Today, though, we might be seeing a new tactic as a city and state are trying to lure an NHL team away from its current neighbourhood rather than an owner threatening to leave.

According to an article today in The Washington Post, writers Teo Armus, Laura Vozzella, Sam Fortier, and Gregory S. Schneider report that "[a] group of Virginia state lawmakers voted Monday in favor of a deal to bring the Washington Capitals and Wizards to a new arena in Northern Virginia, according to four people with knowledge of the situation."

Yes, you read that correctly: the state of Virginia voted on a deal to lure the Washington Capitals and the NBA's Washington Wizards - both owned by Monumental Sports' Ted Leonsis - to Alexandria, Virginia where a new facility is being constructed that will be the main feature of "a massive mixed-use development in Alexandria's Potomac Yard neighborhood". If you felt the earth shake a little, you're not alone because I'm not sure anyone expects the Washington Capitals to move across the river into Virginia.

As shown in the image to the right, the move wouldn't take the Capitals and Wizards very far from where they currently play in Capital One Arena, but there is a financial component to this. Monumental Sports has asked the District of Columbia for $600 million in public funds for a major renovation of the arena as it was built in 1997 and has seen some modest upgrades since that time. DC, for its part, is wrestling with what to do with the NFL's Washington Commanders as well as trying to pump money into a downtown region needing revitalization. With Monumental asking for more than half-a-billon dollars, there's likely a lot of projects that will not see money which may include Monumental's request. One has to wonder if Ted Leonsis, who is a billionaire, would be able to fund the upgrades he wants, but we're seeing another rich owner ask the public for money to fund his expensive ventures once again.

It should be noted that Monumental Sports owns Capital One Arena, but the District of Columbia owns the land on which it sits. Leonsis has complained about the ground lease for a number of years, and the current economic state of the area combined with rising crime rates may just be enough for the billionaire owner to listen to Virginia's offer. According to reporting, Monumental's lease at Capital One Arena expires in 2047, but Leonsis could enable a clause that would see him free of the lease by 2027 if he pays off a bond on the lease. That would cost Leonsis $36 million, so one has to wonder if that's an option he's weighing.

There are still a number of hurdles that have to be cleared for anyone to start anticipating a potential move by the Capitals and the Wizards, but the promises made by Virginia for the new mixed-use development are substantial. NBC4 Washington's Drew Wilder, Mark Segraves, and Carissa DiMargo reported,

"The package would include at least one new hotel, a music venue/convention center and a $200 million transportation package, said State Del. George Barker, who also serves on the commission. Another Virginia state senator close to discussions said the convention center would have 3,000 seats. That lawmaker said the package also includes a deal for the front office and TV network of Monumental Sports and Entertainment, which owns the teams."

Again, to be clear, it would seem that the Capitals are playing in DC until 2027 based on the terms of the current lease for the arena, but the three years of build-up prior to paying off that bond would allow Virginia to develop the area and the new arena for Monumental Sports without any interference. With Leonsis becoming more at odds with DC Mayor Muriel E. Bowser, it seems the smoke from this fire might be very real considering everything written above.

So what is Monumental's stance on all of these developments? They released a non-committal statement that reads,

"Monumental Sports & Entertainment is committed to delivering the best fan experience, winning championships, giving back to our communities, and becoming the most valuable regional sports and entertainment enterprise in the world so that we can continue to reinvest in our fans and community. Our commitment to the DMV is unwavering and we look forward to sharing plans for future investments."

In other words, "move along, nothing to see here".

I'm not saying there isn't a chance that the Capitals could move in the future, but it seems this move by the state of Virginia to build a facility and area to entice the Capitals to change zip codes is going to make things interesting over the next few years. I'll also hold the line I always take in that public funds should never be used to pay for a billionaire's toys, and I'm quite certain that $600 million could do a lot more good for the improvement of the entire downtown area of DC than just investing in Ted Leonsis's arena. Of course, I get no say in the matter, but giving $600 million to a guy whose net worth is worth more than double that amount just seems stupid.

We'll have to keep an eye on these developments, but the Alexandria Capitals just doesn't have the same prestige or meaning as the Washington Capitals do. At the end of the day, though, it seems that the lure of money and new facilities may just be enough to sway the Capitals to cross the Potomac into Virginia.

Until next time, keep your sticks on the ice!

***Stick-tap to John M. for the heads-up on this story!***