The potential move of the Washington Capitals and Wizards from D.C. to Virginia has hit a snag. The D.C. Attorney General's office argues that the teams are locked into their current lease at Capital One Arena until 2047.
In a letter to Monumental Sports & Entertainment (MSE), the team's owner, D.C. Attorney General Brian Schwalb pointed to a 2007 law. This law provided $50 million for arena renovations in exchange for a 20-year lease extension, taking the end date to 2047.
MSE disagrees, claiming amendments allow them to break the lease early. Schwalb refutes this, stating the agreement lacks any such amendment allowing early termination by repaying the bonds.
Schwalb goes further, accusing MSE of breaching the contract by negotiating with Virginia. The agreement, according to him, requires MSE to:
- Notify D.C. before any relocation plans.
- Negotiate exclusively with D.C. for six months.
- Avoid negotiations with other parties during those six months.
- If a new agreement with another party is pursued after six months, MSE must provide written details of the agreement to D.C.
- Grant D.C. 90 days to make a counteroffer.
The letter also highlights that D.C. Mayor Muriel Bowser's $500 million renovation offer for Capital One Arena remains available.