Leonsis hints at demanding new arena for Capitals, Wizards as soon as old one is paid off

So among all of last week’s pre-election shenanigans, this happened:

“My inclination right now would be — it’s pretty awesome where we are,” [Washington Capitals and Wizards owner Ted] Leonsis said Wednesday, the morning of the Wizards’ 2016-17 home opener. “And I love what’s happened to [downtown] D.C. But I don’t know what’s going to happen five, six, seven years from now. . . . I will be a free agent. I mean, that hasn’t been lost on me.”…

His “free agent” comment aside, Leonsis made it clear he is not actively seeking to leave downtown D.C., an area that has grown up around the franchises into a thriving, inner-city entertainment and shopping district. But neither would Leonsis commit to keeping the teams there.

“In terms of the Verizon Center, I’m being sincere: There’s been no discussions of would we look to move,” he said. “Have we talked to Virginia? We have not. Have we talked to Maryland? We have not. I would never do that. My goal would be stay where we are or stay within the city.”

That … that’s a threat, right? Pretty sure that dropping the names of neighboring states and then saying only that you want to “stay where we are or stay within the city” is a veiled threat of the “it’d be a shame if someone was to set fire to the paratroopers” variety.

The crazy thing here is that Leonsis owns the Verizon Center, so he’s in effect threatening to break his lease with himself. He actually made a point of noting that in his talk with reporters, calling his $23 million in annual mortgage payments and $13 million in annual maintenance payments “the worst building deal in professional sports” — it’s really not, but even if it were, having to pay to build and maintain your building is what in most industries is considered a normal business expense, and in any case was baked into the price that Leonsis paid Abe Pollin for the two teams in 2010 — and griped that it’s the equivalent of “paying four, five times the rent compared to other teams that we compete with.”

The mortgage will be paid off in 2023, when the Verizon Center turns 26. Why Leonsis refers to this date as a time to become a “free agent” is slightly baffling, since he has the same debt obligations whether he demands a new arena now or later, but maybe he thinks, “Hey, I just paid off my mortgage and am now more profitable, how about gifting me an even newer arena!” is the kind of argument that will fly with D.C. elected officials?

The only other thing I can think of is that maybe Leonsis, noting how property around the Verizon Center has become more valuable since it opened — partly thanks to its construction jump-starting development interest, partly because pretty much everywhere in D.C. is soaring in value these days — is angling to get both a new arena (this time with somebody else paying the mortgage) and get to redevelop the Verizon Center site. Or maybe he’s just keeping his options open in case he can wangle a piece of the RFK site. Leonsis managed to get $50 million from D.C. for a friggin’ practice facility, so you have to figure he’s hard at work planning an encore.

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12 comments on “Leonsis hints at demanding new arena for Capitals, Wizards as soon as old one is paid off

  1. I could also see this as an effort by Leonsis to get some tax kickbacks for maintenance and upgrades to the current arena.

    1. But then why not ask for it now, when he’s allegedly suffering from all these costs that other team owners don’t have to pay? “In another few years I’ll be out from under my mortgage payments, you should start paying my maintenance costs then” is a bit of an odd argument. (Though admittedly the kind of crazy logic that the D.C. council has bought in the past.)

  2. Saving this for the next time someone talks about Hansen owning a privately financed Seattle arena being team security.

  3. Leonsis is also playing the “we can’t afford to compete unless the city chips in several hundred million” card, trying to gain fan support. Unfortunately for him the local hoops fans aren’t as dumb as the soccer fans and chose to blame front office mismanagement instead.

    1. Gee I thought DC United turned around. Playoffs last two years in row. Also 4 national championships in their short history. Not sure that makes their fans as dumb as fans that would actually wear jerseys and follow a team called the Wizards .

  4. We need a constitutional amendment banning subsidies for sports teams. Plus all ownership must be by the fans in the same terms of the ownership of the Packers. I would personally love to have ownership of a portion of the Cowboys and Twins.

  5. “constitutional amendment banning subsidies for sports teams” – Not necessary. Congress could end it using the “Commerce Clause” of the constitution.

    1. And lets hope they do because it is becoming a total joke to spend money on arenas and stadiums that only stand for 20 plus years.

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