DC Attorney General: Monumental contract would not allow move until 2047

WASHINGTON (DC News Now) — A letter from D.C. Attorney General Brian Schwalb said that Monumental Sports’ contract with the District states that the company’s teams must stay in D.C. until 2047.

The letter, which was dated March 18, said that under the current contract, CEO Ted Leonsis would not be able to pay off bonds early and move the Washington Capitals and the Washington Wizards into a proposed arena in Alexandria, Virginia.

“The Council expressly conditioned that public financing on DCALP’s commitment to extend the original ground lease for an additional 20 years… ensuring [DC] that the Wizards and the Capitals would continue to play their home games at the Arena through 2047…’ ‘full stop,'” the letter read.

Virginia senator says proposed deal to bring Monumental Sports arena to Alexandria is ‘dead’

A representative with Monumental Sports directed DC News Now to statements made in February in which leaders expressed confidence in the move to Virginia.

“Our only plan is to pursue this incredible project,” said Monica Dixon, chief administrative officer of Monumental. “Because we believe the proposal will be incredibly beneficial not to just our fans, our players and the sporting community, but to the city of Alexandria and the commonwealth,” she said.

On Friday evening, Monumental responded by questioning Schwalb’s letter, pointing to an amendment that was ratified in 2019.

The amendment, which Monumental provided to DC News Now, said that if any bonds are prepaid, it would be able to terminate the lease starting 120 days after the payment.

A representative told DC News Now that Monumental has the ability to pay off the bonds that the city took out for arena renovations and that they would pay them off in order to exit the lease.

The bonds are currently being paid for with ticket sales and taxes.

Virginia Gov. Youngkin: Cutting Alexandria arena deal from budget ‘colossal mistake’

Virginia Gov. Glenn Youngkin first announced the proposed stadium in a news conference with Leonsis on Dec. 13, 2023. Virginia’s House cut the deal from the budget in early March.

Sen. Louise Lucas of Portsmouth, who led the opposition against the proposed stadium in Virginia’s Senate, posted on X Friday afternoon in response to Schwalb’s letter.

“Why are we discussing an arena at Potomac Yard with the same organization that is breaking their agreement and commitments to Washington DC? Does anyone believe they wouldn’t do exactly the same thing to us?” her post said.

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