Dear Fans and Supporters,
I am thrilled to share that moments ago I signed a letter of intent with D.C. Mayor Muriel Bowser for a major partnership to renovate and modernize Capital One Arena, expanding Monumental's business operations into Gallery Place, transforming Downtown D.C. into a premier entertainment destination. It is one that aligns our growth mindset with a public-private partnership, which we have been seeking.
About an hour ago, we publicly celebrated this big new partnership with the city – the Mayor, City Council, Metro Police, our neighbors, and business partners – and announced this truly new and unique opportunity for collaboration. This is the first and only letter of intent we have signed regarding a new or upgraded facility. I spoke earlier today with the Governor of Virginia, Mayor of Alexandria, and CEO of JBG SMITH, Matt Kelly, to thank them for their time and efforts on our proposal and to inform them of this newly formally signed deal with D.C.
The assertive actions of Mayor Bowser and the D.C. Council juxtaposed against our experience in Virginia evolved our view of the best partner to support the growth of our business. In the past three months, the pivot and great work in D.C. were in stark relief from what we ultimately experienced in Virginia. While the Virginia House of Delegates did great work in evaluating our proposal, the Senate sadly did no work in even providing us a fair hearing on the true financial benefit of the project. Contrasted with the open level of collaboration that we now have in D.C., we know we are in the best position to meet the next big objectives for the benefit of our fans.
What we have been able to negotiate in D.C. gives us tremendous opportunities. First, we are gaining 200,000 square feet of additional space as we will expand our business and hospitality operations into Gallery Place. With this expansion of space, we have the ability to program the arena and campus to drive more options for visitors and provide more services to our players and our fans. We also sought a deal that would right-size our organization with the Nationals, Orioles, and Ravens as to their venues and partnerships with the City and State. We also sought a new level of cooperation with a government entity around services such as traffic mitigation, safety and security, and cleanliness. We also sought a better and more efficient way to communicate with regulatory agencies and cut through red tape with more efficient approvals. We also sought more direct control of our practice facilities and office buildings. And more control of our future.
We expect to create new viewing options, better and different sight lines, more comfortable seating, upgrade technical and functional infrastructure, and modernize the building as we shift from an analog to a digital world.
This new deal achieves most of, if not all, our key objectives. And I was very impressed with the Mayor’s stick-with-it attitude — she never gave up and was always reaching out to me to keep and expand our business operations in D.C. Gratefully, we kept a good dialogue going with the City and our Mayor and have netted this opportunity for a new chapter for our organization.
And that is in no small part because of the tremendous work undertaken by Mayor Bowser and the D.C. Council. Since the announcement that we were pursuing a partnership with Virginia in December 2023, D.C. officials have taken concrete action to support Monumental Sports and the downtown community. In January 2024, the Mayor announced the formation of the Gallery Place/Chinatown Task Force to articulate a defined vision surrounding Capital One Arena and committed $400 million for the Downtown Action Plan and a Downtown Public Realm Plan to ensure the long-term success of Downtown D.C.’s commercial core. The Mayor also opened the first Safe Commercial Corridor Hub in the Chinatown neighborhood staffed by outreach teams from multiple public safety and human services agencies that will be able to respond in real-time to challenges in the community. And earlier this month, the Council passed the Secure DC omnibus legislation with a multi-prong strategy and tactics to combat crime, including a designation around the Chinatown neighborhood as a drug-free enforcement zone.
With this concentration of efforts downtown and particularly around our building, we are witnessing the city taking seriously the central role we can and will now play in downtown revitalization. The Mayor has articulated that we are a top priority for her administration, and we really believe it to be true.
Sports teams provide incredible benefits to the surrounding community and drive extraordinary economic impact and a strong public private partnership is essential to sustaining both – which the Mayor recognizes. According to research conducted by the DC Business Improvement District, activity at Capital One Arena generated $54 million in DC tax revenue in 2023. Across our region, public private partnerships are the norm for professional sports teams: the MLB’s Washington Nationals secured $700 million in public financing to build Nationals Park and $400 million in public financing to build Audi Field for the MLS’s D.C. United. The Maryland Stadium Authority recently announced a $1.2 billion investment for Oriole Park at Camden Yards, home of the MLB’s Baltimore Orioles and M&T Bank Stadium, home of the NFL’s Baltimore Ravens, each receiving $600 million for renovations and upgrades on top of the original public funding used in the planning, financing and construction of both.
So, through our own public-private partnership, we will transform Capital One Arena and engage in new space across Gallery Place to create a truly iconic epicenter – worthy of this iconic city. We will get more space, dedicated resources to create the family-friendly entertainment zone we’ve envisioned to service our millions of customers and support for our employees and athletes to make this a destination to attract and retain their talent.
What’s most inspiring in this moment is the City’s shared vision that we achieve great success in our business. The new downtown plan which Mayor Bowser has articulated is impressive and she has made financial commitment from the city. The passage of the new crime bill led by Councilmember Brooke Pinto is very important to all citizens and businesses.
I truly applaud the Mayor for recognizing the incredible value we bring, create and help foster and for evolving the business-friendly climate in D.C. And today we celebrate this incredible milestone for our business, for our city, for our employees, fans, and athletes!
Our work begins now to build a state-of-the-art marquee venue for with new seating options, five-star culinary experiences that go way beyond the traditional game-day fare, and cutting-edge technology, right in the middle of the city. We're on a mission to create a masterpiece – and redefine the sports and entertainment experience, not just for the DMV, but for all sports fans.
Get ready to be part of something extraordinary!
Ted
FYT
