The real estate is currently owned by Monumental Sports, but that may change soon.
According to Mark Segraves of WRC-TV, the D.C. government will propose buying Capital One Arena from Monumental Sports & Entertainment for $87.5 million.
What would happen is that the D.C. government, which already owns the land the arena is on, would now own the real estate on top of the land. It would also immediately lease back Capital One Arena to Monumental Sports for a payment between $1.5 to $2.3 million per year.
Monumental Sports is receiving $515 million in various upgrades to Capital One Arena, and Segraves also reported that this proposed Capital One Arena sale would also be part of that.
The $87.5 mil is part of the $515 million deal. All $515 mil we’ll be used for improvements and upgrades to the new arena and is expected to be exempt from taxes according to the new legislation@nbcwashington https://t.co/CbMZVU1fgB
— Mark Segraves (@SegravesNBC4) October 20, 2024
Most NBA and NHL team ownership groups do not own the arenas they play in, which puts Monumental Sports in the minority. While owning the building is often seen as a positive for a sports ownership group, Monumental Sports CEO Ted Leonsis also raised concerns about renovation costs. If Monumental Sports didn’t own the arena, they could get some cost savings in that regard while focusing more heavily on the in-game experience of the Washington Wizards and Capitals, the primary teams in the building.
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