Massive blow dealt to Capitals owner Ted Leonsis
A massive wrench thrown into his plans of moving the team.
HockeyFeed
The owner of the Washington Capitals along with the NBA's Washington Wizards has been dealt a massive blow in his plans to relocate both teams to northern Virginia.
D.C. Attorney General Brian L. Schwalb has informed Ted Leonsis that he is legally bound to keep both franchises in their current location in downtown Washington D.C. for at least two more decades.
In a scathing letter, Schwalb has accused Leonsis’s company, Monumental Sports & Entertainment, of breaking promises to the city by attempting to negotiate with the state of Virginia regarding the relocation of both franchises to a new, yet-to-be-built venue.
Additionally, legal action is being threatened if Leonsis attempts to leave their Capital One Arena lease by 2027.
“To be clear, the District very much prefers not to pursue any potential claims against MSE,” Schwalb wrote in the letter. “It remains committed to maintaining and growing its partnership with MSE and to keeping the Wizards and Capitals at the Arena until the end of the existing lease term in 2047, if not beyond.”
"I am advising you that the District does not agree with your legal conclusion that [Monumental's] proposed arena move to Virginia does not violate or beach its legal obligations to the District."
Meanwhile, a spokeswoman for MSE released a statement detailing their "fundamental disagreement" with the ruling.
“We fundamentally disagree with the Attorney General’s opinions, which are contradicted by the DC General Counsel as recently as 2019 when the city ratified the Ground Lease,” the spokeswoman said.
The Capitals have called Capital One Arena home since the 1997-98 season, and it has recently undergone extensive renovation efforts to keep it up to date with more modern venues.
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