In a major turnaround, D.C. Mayor Muriel E. Bowser and Ted Leonsis, the owner of the Washington Wizards and Capitals, have announced that they are finalizing a deal that would keep the teams in downtown D.C. until 2050. The agreement, which is pending approval by the D.C. Council, marks the end of Leonsis's planned move to Virginia.

Under the terms of the deal, the city of D.C. will invest $515 million over three years to support the modernization of Capital One Arena, the home venue for the teams. In return, Leonsis will sign a new lease that ensures the teams will continue to play in D.C. for an additional 25 years.

The agreement also includes provisions addressing Leonsis's concerns about the state of downtown and grants Monumental Sports and Entertainment, Leonsis's company, the ability to expand further in the city. These provisions include the management of the Mystics' home facility in Southeast D.C., access to District-owned parking for Monumental employees, the presence of a minimum number of police officers downtown, and plans for a new practice facility for the Wizards in the future.

This development represents a significant shift from Leonsis's previous plans to relocate the teams to a new arena in Virginia's Potomac Yard area. Despite initial approval by the Virginia House of Delegates, the proposal ultimately failed to pass the Senate and was left out of the state's budget.

In a joint interview with The Washington Post, Mayor Bowser and Leonsis expressed their ongoing collaboration and praised each other's efforts to improve the business climate in downtown D.C. They emphasized that staying in D.C. was a reflection of the community's support for their teams.

While the deal still needs to be approved by the 13-member D.C. Council, members unanimously supported a similar legislation in December offering $500 million in upgrades over three years, aligning closely with the terms discussed by Leonsis and Bowser.

Virginia Governor Glenn Youngkin expressed disappointment with the missed opportunity, citing the potential for thousands of jobs and billions in revenue. However, the city of Alexandria, where the new arena was planned, announced that it has halted negotiations due to the failure of the proposal to gain traction in the General Assembly.

The unexpected announcement of the deal in D.C. comes as a relief to fans, residents, and business owners concerned about the potential loss of the teams, which bring nearly 2 million visitors per year to Chinatown—a neighborhood grappling with empty storefronts, office vacancies, and crime.

The agreement between D.C. and Monumental Sports reflects the progress made in revitalizing downtown D.C., as well as the city's commitment to supporting its sports teams. Should the D.C. Council approve the deal, it will solidify the long-term presence of the Wizards and Capitals in the heart of the nation's capital.