In a significant development impacting the nation’s capital, the owners of the Washington Wizards and Capitals have announced a preliminary agreement with Virginia Governor Glenn Youngkin for the construction of a new arena in Alexandria. Governor Youngkin’s proposal involves relocating the NBA and NHL franchises to a new “visionary sports and entertainment venue” in northern Virginia.
The proposed $2 billion development, which is subject to approval by the state legislature, aims to create a 9 million-square-foot complex south of Washington in Alexandria, just a few miles from the current arena. This expansive project would include a cutting-edge arena for Virginia’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 in Alexandria’s Potomac Yard neighborhood. Additionally, the development would feature hotels, restaurants, and retail stores.
Governor Youngkin praised the project, calling it “the most visionary sports and entertainment development in the world” and highlighting its potential to bring together entertainment, sports, and technology in the advanced innovation corridor of the United States. He emphasized the economic benefits, stating that the Commonwealth would gain two professional sports teams, a new corporate headquarters, and over 30,000 new jobs.
In response, D.C. Mayor Muriel Bowser expressed disappointment at the prospect of losing the teams to Virginia. She had proposed a $500 million plan to modernize Capital One Arena in an effort to keep the Wizards and Capitals in the District. Despite receiving unanimous support from the D.C. Council, Bowser’s plan faces tough competition from Virginia’s ambitious development.
The potential departure of the Wizards and Capitals, both fixtures in the nation’s capital since 1974, would be a significant loss for the District. Mayor Bowser estimated that losing the teams could cost the city up to $25 million annually in tax revenue. The District’s downtown area has already faced challenges, including rising crime rates and office vacancies in the wake of the pandemic, making the loss of these franchises particularly impactful.
Despite the District’s efforts to retain the teams, Virginia’s $2 billion development plans appear to offer a more compelling opportunity. Secretary of Finance Stephen Cummings expressed confidence in the project, noting that all project investments backed by the Commonwealth and the City of Alexandria would be repaid in full by incremental project revenues, without requiring any upfront investment or tax increases.
If approved by the legislature and the Alexandria City Council, Virginia’s ambitious development is set to break ground in 2025 and open its doors in late 2028.
