Ted Leonsis says $800 million Capital One Arena renovations are fan-driven: ‘Tickets are expensive, fighting traffic.."

Capital One Arena is currently undergoing a six-phase, $800 million renovation that is scheduled to be completed in fall of 2027. Monumental Sports and Entertainment CEO Ted Leonsis, owner of the Washington Capitals and Wizards, told CNBC in an interview Tuesday he believes the long-term project is vital to the prosperity of the nation’s capital.

“I think it’s very, very important for our cities to be fully developed economically and we have to get people back into the office,” he said. “We have to keep businesses flowing and we’re a portal. We can bring in three million people a year… I think sports teams now have become this massive meeting and gathering place.”

The DC council approved $515 million to be put towards transforming the arena’s exterior, including the formation of a “People’s Plaza,” which will create a large outdoor area for fans to congregate throughout the year. All of the arena’s entrances will also be upgraded, and a highly-anticipated statue of Capitals captain Alex Ovechkin appears planned for outside one of them. MSE also acquired more real estate in Chinatown as part of the deal.

Leonsis insisted that, despite the steep expense for DC taxpayers, modernizing the nearly 28-year-old arena and expanding his company’s control over the surrounding area downtown will only benefit fans and residents.

“[We’re] trying to rehab the building, reimagine it to make it modern, make it a much friendlier, much more bespoke experience for the fans because the fans are very demanding now,” he continued. “Tickets are expensive, fighting traffic, we kind of have to think of an end-to-end customer experience.”

In addition to cosmetic upgrades to the exterior, the inside of Cap One is also getting an overhaul. Improvements will be made to the main concourse level, premium club level and suite areas, concession spaces, food and beverage experiences, locker rooms for the Capitals and Wizards, training rooms, the player’s lounge, and the family lounge. Digital renderings of the renovations were released in December when Leonsis and DC Mayor Muriel Bowser formally announced the project’s approval.

“We also have to do it for the players. We also have to do it for our employees. These have become big businesses,” Leonsis said. He also cited the COVID-19 pandemic as a major driver for giving fans and players a revitalized arena.

“We should never take the popularity of the game and competition and the players for granted. We’re lucky in that there’s something about sports that people crave. It’s not just the competitiveness,” he said. “I do believe there is this tribalism of being a part of something bigger, and we really saw that after the pandemic … We came back after the pandemic, sold out, had our best years ever, and people just crave – they miss so much the ability to high five, hug people, be able to emote [and] be able to be a part of something.”

The arena also underwent a $30 million renovation in 2019 and 2020, where all 20,000 seats were replaced and concourses upgraded to accommodate fresh dining options. A larger overhead video board and a SkyRing screen were also installed as part of the project.