Monumental Sports & Entertainment founder & CEO Ted Leonsis “finally sat down with” Virginia state Sen. L. Louise Lucas, who has the "power to make or break” potential funding and legislation for a new Alexandria arena for the Wizards and Capitals, according to Schneider & Vozzella of the WASHINGTON POST. However, even after a 40-minute conversation in a Richmond hotel last week Lucas “remained firm” in her opposition to the $1.5B in public debt that Virginia Gov. Glenn Youngkin had pledged to the arena. Because of her opposition, the project is “hanging by a thread.” Lucas said that she was "unhappy with the 'moral obligation' state and local taxpayers would undertake to support the bonds financing the project." She added that if there were “some kind of catastrophe,” the public “would be on the hook for millions.” Leonsis pointed out that much of the teams’ revenue is from media rights, which “continue to flow even if something like a pandemic blocks in-person attendance” and that during the covid shutdown MSE “never missed a mortgage payment.” But Lucas said that she felt she had been “shut out of the dealmaking process” around the arena. She added Leonsis told her he “was sorry they had not met sooner.” Sources described the Youngkin administration as “keeping close control over the process.” Sources said that although Youngkin “regularly contacted Lucas with phone calls or through his staff on the arena and other matters,” Leonsis delayed meeting with Lucas, in particular, because of “guidance from the governor’s team.” Youngkin spokesperson Rob Damschen said the account was “completely false” (WASHINGTON POST, 3/10).
