Virginia Lawmakers to Consider $2 Billion Plan for New Capitals, Wizards Arena

Monumental Sports and Entertainment pledges $403 million upfront, with critics arguing taxpayers could bear the brunt of any financial shortfall.

Virginia Governor Glenn Youngkin and entrepreneur Ted Leonsis, CEO of Monumental Sports and Entertainment, have proposed a $2 billion plan to move the NBA's Washington Wizards and NHL's Washington Capitals to a new arena in northern Virginia.
The plan involves the creation of a new sports arena and entertainment district in the Potomac Yard section of Alexandria, including an arena, practice facility, corporate headquarters for Monumental, and a separate performing arts venue.
Monumental has pledged to put $403 million upfront, with Alexandria committing $106 million for the performing arts venue and parking. The rest of the funding would come from bonds issued by a stadium authority, a governmental entity lawmakers are being asked to create.
Under the proposal, about $1 billion in bond revenue would be repaid by new tax revenues from the project. Another $416 million in bonds would be repaid through rent paid by the Capitals and Wizards.
Opponents argue that the proposal amounts to a taxpayer handout to the wealthy owners of the teams' parent company and that taxpayers would be on the hook if the arena project generates insufficient revenue.