Virginia plans to build a $2B state-of-the-art arena for Wizards and Capitals relocation

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In a blow to the nation's capital, the owners of the Washington Wizards and Capitals announced a tentative agreement with Virginia's governor for a new arena in Alexandria.

Virginia Gov. Glenn Youngkin plans to relocate the NBA and NHL franchises to what he described as a new “visionary sports and entertainment venue” in northern Virginia.

The proposal, which still requires the state legislature’s approval, calls for the creation of a $2 billion development south of Washington in Alexandria, just miles from the existing arena.

The 9 million-square-foot development would include a state-of-the-art arena for what would be the state’s first major professional sports teams, a media studio for Monumental Sports Network, a practice facility for the Wizards, a performing arts venue, and an expanded esports facility to the city of Alexandria's Potomac Yard neighborhood in addition to hotels, restaurants and retail stores.

“This is the most visionary sports and entertainment development in the world, bringing together entertainment, sports, and technology in the most advanced innovation corridor in the United States: a once-in-a-generation and historic development for the Commonwealth, sports fans, and all Virginians," said Governor Glenn Youngkin.

"The Commonwealth will now be home to two professional sports teams, a new corporate headquarters, and over 30,000 new jobs – this is monumental."

D.C. Mayor Muriel Bowser pushed back on the idea of the franchises departing for Virginia and pitched a counterproposal in December to build a new stadium to keep the Wizards and Capitals in the District.

Bowser proposed a half-billion-dollar plan to modernize Capital One Arena, hoping that the stadium's facelift would sway the teams to remain in town. The proposal received unanimous support from the D.C. Council.

“National Landing Wizards doesn’t quite have the same ring,” Bowser said, poking fun at the “National Landing” moniker that Virginia economic development officials have used to market Potomac Yard and the surrounding region.

The Wizards and Capitals have both played in the nation's capital since 1974 and losing the teams would be a huge blow to the District.

Bowser said late in 2023 that losing the teams could cost the nation's capital as much as $25 million a year in tax revenue.

The downtown area in D.C. has suffered in recent years due to increasing crime rates and the inability to fill office buildings post pandemic.

Now, the District is at risk of losing two of its longest-tenured franchises.

"We're very disappointed, but at the same time, we have to look at our assets and we're talking about five acres in the center of the District of Columbia. It's a great asset," Bowser said Wednesday.

Despite D.C. doing everything possible to retain the teams, it will be tough to compete with the $2 billion development plans of Virginia.

“Ensuring a stable financing structure was the Commonwealth’s top priority, and we are confident this transformational project is a win-win for Virginia, the City of Alexandria, and Monumental Sports & Entertainment,” said Secretary of Finance Stephen Cummings. “All project investments backed by the Commonwealth and the City will be paid back in full by incremental project revenues; there is no upfront investment by the Commonwealth and no existing taxes or tax increases are a part of this financing plan. This tremendous opportunity will drive billions in total economic impact over 40 years.”

Subject to legislative approval and sign-off from the Alexandria City Council, Virginia's lavish development would break ground in 2025 and open in late 2028.