Reply to Wizards and Caps could be moving to Potomac Yard

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Reply to "Wizards and Caps could be moving to Potomac Yard"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Since this seems to have fallen off the radar,

https://russianmachineneverbreaks.com/2024/12/17/dc-council-approves-capital-one-arena-legislation-ted-leonsis-capitals/

[quote]First, the District government is purchasing Capital One Arena from MSE for $87.5 million. The venue will then be leased back to MSE, who will operate and maintain it, for about $2 million a year through 2050, with up to five four-year renewals beyond that. [/quote]

[/quote]
This misses DC government’s obligation to invest $500 million in improvements. So in effect, DC is buying the Arena for $600 million and in return receiving $37 million in rent over 25 years. Which at that time there will be no residual value in the building. [/quote]

Yes, that was the deal: The city was going to pour money into the building as a condition for keeping the team. That was, in fact, the city's ORIGINAL offer before Leonsis tried to move to Virginia, too. I think his whole dalliance with Youngkin wound up netting an extra $15 million in improvements over the offer he rejected.

All in all, I suspect $600 million is less than the District would have had to spend remaking that area/would have lost in various tax revenues if the teams had all moved out of the city. [/quote]
Trying to spin this as a good deal for DC is pretty LOL.[/quote]

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