June 27, 2023

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Good morning. David Rumsey [[link removed]] here. Ted Leonsis keeps making news with his efforts to either find a potential new home for his Washington Capitals and Wizards or upgrade their existing one.

Meanwhile, an NBA Draft controversy poses some interesting questions about the future of sports betting, while funding is becoming an issue for soccer in Canada.

Wizards, Capitals Owner Explores Arena Options, Possible Move [[link removed]]

Geoff Burke-USA TODAY Sports

Already one of sports’ busiest executives, Monumental Sports & Entertainment chairman Ted Leonsis is now asking big questions about the future of the 25-year-old Capital One Arena.

After bringing in Qatari investment [[link removed]], rebranding his company’s regional sports network, playing an active role [[link removed]] in the NBA trade market, and possibly relaunching efforts to buy [[link removed]] the Washington Nationals, the owner of the Wizards, Capitals, and Mystics is evaluating venue options on both sides of the Potomac River.

Monumental has held exploratory talks with Virginia government officials about moving the Washington Wizards and Capitals to Northern Virginia, according [[link removed]] to the Washington Post. It’s also conducting parallel talks with D.C. leaders about potential improvements to Capital One Arena.

The building — owned by Monumental but operating with a ground lease on city-owned land — is now one of the oldest in both the NHL and NBA and falling behind in new revenue despite renovation projects in 2007 and 2019, as well as nearly $125 million in total MSE arena investment since 2010. Leonsis could exit the ground lease as soon as 2027.

Discussions between Monumental and D.C. have also focused on development and crime trends in the arena’s Chinatown neighborhood.

“MSE has had great engagement with Mayor [Muriel] Bowser to ensure we maintain the greatest fan experience in and around Capital One Arena,” Monumental said. “We are celebrating the 25th anniversary of the arena this year and will continue to invest to build a best-in-class operation for the next 25 years.”

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“High school lacrosse is only sanctioned in 26 states … That means nothing but upside in terms of growth potential. We think lacrosse can grow exponentially because of that opportunity to speak to new audiences.”

— Marc Riccio, CEO of USA Lacrosse, on how he expects a boost in the sport’s popularity over the coming years. Download the latest episode of Front Office Sports Today to hear from Riccio on lacrosse’s big plans for growth and the push to be in the 2028 Olympic Games.

🎧 Listen and subscribe on Apple [[link removed]], Google [[link removed]], and Spotify [[link removed]].

Could Sportsbooks Stop Taking Bets on Drafts After NBA Controversy? [[link removed]]

Wendell Cruz-USA TODAY Sports

As NBA teams look ahead to free agency and integrating their rookies this summer, last week’s NBA Draft has generated a new controversy regarding a tweet from insider Shams Charania.

Bettings odds for the Charlotte Hornets’ No. 2 over pick shifted dramatically after a report by Charania, who counts FanDuel among his several employers, according [[link removed]] to the Wall Street Journal. FanDuel had to address the story, saying it isn’t privy to news Shams breaks on his platforms.

Although the overwhelming sentiment is that Charania had no ill intent with his scoop — which turned out to be wrong — some industry figures began speculating that more happenings like this could stop sportsbooks from offering wagers on drafts

Betting on drafts isn’t allowed in New York, Connecticut, Pennsylvania, Virginia, and Washington, D.C. — but no U.S. sportsbooks have an overarching policy against it on principle.

“I’d be a little surprised if sportsbooks stop taking draft bets,” Chris Grove, co-founding partner of sports betting-focused Acies Investments, told Front Office Sports. Grove noted that the betting handle on drafts is not a huge piece of the overall pie.

As more athletes navigate this new age of sports betting — often crossing [[link removed]] the line — draft bets open the door for executives and team employees to potentially land in hot water, too.

“Any event where the outcome is known in advance is always going to be something that books and regulators approach cautiously,” Grove added.

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Canada Soccer Hitting Dire Financial State Ahead of Women’s World Cup [[link removed]]

Anne-Marie Sorvin-USA TODAY Sports

Canada Soccer is facing possible bankruptcy ahead of this summer’s FIFA Women’s World Cup.

A lack of sufficient funding could render the country’s senior national teams unable to play in international windows this fall, Jason deVos, interim general secretary for Canadian soccer’s governing body, told [[link removed]] TSN.

Canada Soccer used more than $3.04 million of its $3.8 million in public funding in 2022, while its cash reserves fell to $1.82 million — down from $5.4 million at the end of 2021.

“We are in a real struggle,” deVos said. “It’s not imminent, but we need to explore what bankruptcy entails and how it might affect our organization. We don’t have enough revenue coming in for the programs that need to be run.”

In 2026, Toronto and Vancouver will host games for the men’s World Cup in North America, which will surely inject cash and stoke new interest in the sport in Canada. But until then, the country’s top soccer officials will struggle to keep the enterprise afloat.

A less-than-favorable media rights contract currently sees Canada Soccer receive an annual payment of up to $3.04 million, while a private company controlled by Canadian Premier League team owners takes in the revenue from media and sponsorship deals.

While Canada’s women’s squad prepares for the World Cup [[link removed]] in Australia and New Zealand, the men’s team is in the midst of North America’s Concacaf Gold Cup.

Hitech Seeks Formula 1 Entry Despite Expansion Questions [[link removed]]

David Kirouac-USA TODAY Sports

Considering the historic momentum and popularity surrounding Formula 1 — as seen again Monday with the Alpine team’s high-profile investment [[link removed]] — a key question continues to surface: Will the property expand beyond its 10-team slate?

F1 CEO Stefano Domenicali recently downplayed [[link removed]] the notion, saying, “I think that 10 teams are more than enough to create the show and attention that we want to see on the track,” while the enforced scarcity of teams has been a fundamental component of rising investor interest.

Nevertheless, motorsports governing body FIA initiated [[link removed]] an application process in February to identify potential F1 expansion teams.

The U.K.’s Hitech Grand Prix — which currently competes in the Formula 2, 3, and 4 junior series — has made [[link removed]] such an application in the hopes of entering an F1 team beginning in 2026. The British team recently brought on investment from Kazakh billionaire Vladimir Kim, who now owns 25% of the operation.

The team said an F1 entry would “demonstrate that Hitech has all the right people, experience, and resources to compete alongside the best teams in the world.”

Hitech isn’t alone: Andretti Global, led by former F1 and CART driver Michael Andretti, is also eyeing [[link removed]] a 2026 entry amid a planned partnership with Cadillac.

There are also financial concerns. The FIA set an entry fee of $200 million for new teams to account for prize-money dilution. But that figure was finalized in 2020, prior to F1’s commercial rise, and some existing teams are expected to argue to push the fee to at least $600 million.

Conversation Starters LSU’s journey to the College World Series in Omaha began in this state-of-the-art baseball complex [[link removed]]. One of the largest indoor football facilities in the country is coming to the banks of the Chippewa River — for a Division III program. Check it out [[link removed]]. Will you watch Apple’s upcoming Steph Curry documentary? Make your voice heard in our poll [[link removed]].

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Editor's Picks ESPN Offers Sage Steele $501K to Settle Lawsuit [[link removed]]by A.J. Perez [[link removed]]

ESPN offered to cover attorney fees to settle lawsuit against network, Disney.

Senators Bidder Neko Sparks Readies for Next Chance [[link removed]]by A.J. Perez [[link removed]]

The entrepreneur is focused on the next team to hit the market.

Next Wave of Realignment Hinges on Pac-12, Says CBS Sports Analyst [[link removed]]by Andrew Cohen [[link removed]]

14 FBS schools will officially change conferences on July 1.

Question Of The Day

Do you plan to watch any of the 2023 Women’s World Cup?

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Monday’s Answer

47% of respondents watched the 2023 NBA Draft.

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