Wizards considered moving their NBA franchise to Virginia, but negotiations are now over

The City of Alexandria, Virginia has huge plans for the future, as they intended to lure the NBA’s Wizards and NHL’s Capitals from Washington to find a new home in their land. However, it seems as if their ambition is too big for the moment, while negotiations came to an end as the two teams “will not move forward.”

The plan was offered by Governor Glenn Youngkin to relocate Ted Leonsis’ teams to Alexandria and create a development district with a new arena for both franchises. However, in a statement posted on their website, they expressed their disappointment as the project was blocked by lawmakers in the state’s General Assembly.

Once the news came out, new reports suggested that D.C. Mayor Muriel E. Bowser is finalizing a contract that will maintain the teams in Washington at their current home for 25 more years. According to the Washington Post, the city will provide $515 million that will be invested in modernising the Capital One Arena through 2050.

Capitals, Wizards will stay in D.C. after Virginia arena deal falls apart https://t.co/L7T22PgLb4 pic.twitter.com/YQ09OFwsWW

— New York Post (@nypost) March 28, 2024

About three months ago, Leonsis revealed his teams were considering this potential relocation in Alexandria, which was to be a part of a larger $2.2 billion development project. “As stewards of the City’s economic health and development, City leaders believed the Potomac Yard Entertainment District opportunity was worthy of community discussion and Council consideration.

“We negotiated a framework for this opportunity in good faith and participated in the process in Richmond in a way that preserved our integrity. We trusted this process and are disappointed in what occurred between the Governor and General Assembly,” the city announced in a statement.

Despite the bad news, the city from Virginia was determined to show their citizens how big their dreams really are, and hope to continue planning their development. “We engaged in substantial community engagement over the past months that informed our negotiations and would have made the proposal even better for our community.

“That continued conversation would have also allowed us to consider how a project of this scale could support our plans for growth and our community’s future. … We will continue to pursue economic opportunities that improve our quality of life and economic health,” it reads.

Governor Youngkin expressed his frustration over the demise of a project that would potentially create $12 billion

The proposal made to Washington’s NFL and NBA teams had years in planning, and the past months in negotiation. As the news came about the rejection of the plan, Governor Youngkin couldn’t hide his disappointment over the resolution, as he believed if would’ve potentially created $12 billion in economic investment.

“This should have been our deal and our opportunity,” he said in a statement. “But no, personal and political agendas drove away a deal with no upfront general fund money and no tax increases, that created tens of thousands of new jobs and billions in revenue for Virginia.”

Back in December, both the Governor and Leonsis had revealed at a public event that they were reaching an understanding of a plan that would start by creating a $2 billion development district with a new sports arena in Alexandria, which is only a few miles from where Capital One Arena is today.

The idea was that the offering would ask the General Assembly to set up an authority that would create bonds to finance most of the ambitious project, which was backed partly by both city and state governments. According to the plan, a lot of the investment would’ve been repaid through a mix of tax revenues recaptured by the project itself.