January 26, 2024

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Washington Wizards and Capitals owner Ted Leonsis begins to play offense amid rising opposition to his $2 billion arena and mixed-use development plan in Virginia. … New questions about proposed sports facility projects in Philadelphia and Las Vegas. … Vince McMahon, a looming figure in pro wrestling for more than four decades, has been hit with a lawsuit accusing him of sexual assault and sex trafficking. … Plus: More on the latest news surrounding Bill Belichick, the Kansas City Current, Formula 1, and Inter Miami sponsor Royal Caribbean.

— Eric Fisher [[link removed]]

Monumental Shift: Ted Leonsis Pens Letter to Win Support for $2B Project [[link removed]]

Tommy Gilligan-USA TODAY Sports

A long-lionized team owner is facing some real public pushback, for perhaps the first time in his extended run in sports, and is now trying to change minds.

Ted Leonsis, the chair of Monumental Sports and Entertainment and for more than two decades a highly popular figure in Washington, penned a nearly 2,600-word open letter [[link removed]] about his much-debated, $2 billion effort [[link removed]] to build a new arena and mixed-use development for the NBA Wizards and NHL Capitals in Alexandria, Va. The missive—highly unusual in both length and specificity compared to other team owners pursuing stadium or arena projects—amounts to his most substantive response to date as the proposal faces growing opposition in both D.C. [[link removed]] and Virginia [[link removed]].

“I find the notion that sports arenas and stadiums do not provide economic benefit to be simply illogical,” Leonsis wrote. “Professional sports teams are important to the fabric of a community. The buildings they play in bring people together, they drive economic growth, and they are worthy of investment.”

Among other key arguments Leonsis makes:

He champions his long-held belief that the Washington area is actually becoming a “supercity,” with the team’s media market stretching from Richmond to southern Delaware, and continued growth within that area reducing geographic distinctions. “Monumental Sports and Entertainment has always been about the entire DMV,” Leonsis writes, referring to the District of Columbia, Maryland, and Virginia. He seeks to counter the argument that the Alexandria project would reduce accessibility for Wizards and Capitals fans, particularly ones from Maryland, and cites the 2.6 miles from the Potomac Yard location to the D.C. border. But that short distance can require anywhere from 30 to 90 minutes in typical Washington rush-hour traffic, and the proposed new arena is not nearly as centrally-located within the area’s Metro system. The size of the land, he argues, is critical in the strategy behind the project, with the 12 acres in the Virginia parcel more than tripling the 3.8-acre size of Capital One Arena, the teams’ current home. “Professional sports teams are realizing that to build championship-level contenders, an outsized investment in space is required,” Leonsis said. Monumental, he says, is planning to contribute $400 million toward the project, with the rest coming from public bonds primarily funded by lease payments from the teams and development-related tax revenues. The effort also calls for more than $100 million in upfront subsidies from the city of Alexandria.

Despite the big move toward transparency, Leonsis is likely to face more obstacles in his path. Legislation has been introduced [[link removed]] in the Virginia General Assembly, but state-level political opposition has already surfaced to join pockets of objection among local residents.

Philadelphia, Las Vegas Sports Projects Face New Questions Too [[link removed]]

Philadelphia 76ers

Two of the most controversial facility developments in pro sports are facing new rounds of opposition and uncertainty, once again placing their ultimate success in some doubt.

As Philadelphia’s city council held its first legislative session of the year on Thursday, protesters of the 76ers’ plan to build a new $1.55 billion arena in Center City gathered [[link removed]] outside, extending what has been months of objection against the plan, particularly from neighboring Chinatown. The council is beginning to consider enabling legislation for the proposed venue.

Among the key issues at play is financing, as the 76ers intend to fund the project privately, only leaving the possibility for federal and state funds should they qualify for certain existing programs. Opponents see that as a likely back door to ultimately taking taxpayer money.

“Public money should be spent on the public good, not on the wants of billionaire arena developers,” said Mohan Seshadri, executive director of the Asian Pacific Islanders Political Alliance, who was on hand for the protest.

The team, however, says it has gathered [[link removed]] more than 30,000 signatures for a petition supporting the arena, and it has pledged to maintain an open dialogue with the communities most impacted by the arena project.

“There continues to exist misinformation and canvassing allows our team to meet people where they are to provide facts and answer questions,” said David Adelman, 76ers co-owner and chair of 76 DevCo, the company leading the arena effort.

The prospect of the downtown arena has roiled [[link removed]] the city for months, particularly as Wells Fargo Center owner Comcast Spectator have made a fervent push of its own to keep the 76ers at the south Philadelphia arena.

Little Insight From A’s Owner

More than 2,000 miles to the west, the still-tenuous plan [[link removed]] in Las Vegas to build a new Oakland A’s ballpark is arguably no closer to reality. Nearly two months after hitting the planned-but-canceled date to release new renderings for a stadium along the Las Vegas Strip (the original set of drawings was acknowledged [[link removed]] by the team to be garbage), questions continue to surround the project.

With the team pushing to open the new facility by the start of the 2028 season, there is still no clarity on its temporary home [[link removed]] for the 2025-27 seasons, whether the facility will have a retractable roof [[link removed]] as originally planned, or how well the planned ballpark will work on the relatively tight, nine-acre site.

A’s owner John Fisher made a rare public appearance on Wednesday at an event held by the Las Vegas Chamber of Commerce, but he offered [[link removed]] little to answer those questions. He did say the new renderings are still being finalized.

“Nothing ever goes in a completely straight line,” Fisher said. “But we are working really well together with our partners, we have a tremendous team” of architects, designers, and builders.

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History Behind U.S. Sports Betting

Sports betting [[link removed]] is as popular today as it ever has been. Americans can now legally bet on sports in 37 states and Washington, D.C. As of May 2023, 39.2 million American adults had placed a traditional sports bet in the last 12 months.

But how did we get here?

Tune in [[link removed]] to Lesson 1 of Responsible Gaming Essentials: Introduction to Responsible Gaming, and learn about the history of legalized sports betting in the United States from FanDuel President Christian Genetski.

Trace the sector’s evolution from 1931, when it was first legal in Nevada, all the way up to the monumental repeal of the Professional and Amateur Sports Protection Act (PASPA), and so much more.

Register [[link removed]] for the course today.

Vince McMahon Accused of Sex Trafficking in New Lawsuit [[link removed]]

Joe Camporeale-USA TODAY Sports

Just days after the WWE struck a landmark $5 billion media rights deal [[link removed]] with Netflix, a new lawsuit accuses the wrestling promotion’s founder, Vince McMahon, of sexual assault and sex trafficking.

McMahon is now the executive chairman of TKO Group Holdings, the parent company of WWE and UFC, which came together last year as part of a $21 billion merger. But the lawsuit, filed by a former female WWE employee and first reported by the Wall Street Journal [[link removed]], covers a time period from 2019 to 2022. McMahon stepped down as CEO of WWE in June 2022 when WWE announced it was investigating a reported $3 million settlement [[link removed]] McMahon is alleged to have paid to an outgoing employee with whom he was said to have had an affair.

In the new lawsuit, which can be viewed here [[link removed]], Janel Grant, the former employee, claims to have been “the victim of physical and emotional abuse, sexual assault and trafficking at WWE.” Grant says that McMahon and former WWE head of talent relations John Laurinaitis forced themselves upon her, and that McMahon attempted to get Grant to have sex with a wrestler WWE was trying to sign.

In response to the filing, a spokesperson for McMahon told several media outlets: “This lawsuit is replete with lies, obscene made-up instances that never occurred, and a vindictive distortion of the truth. He will vigorously defend himself.” TKO, for its part, distanced itself from McMahon, saying: “Mr. McMahon does not control TKO, nor does he oversee the day-to-day operations of WWE. While this matter pre-dates our TKO executive team’s tenure at the company, we take Ms. Grant’s horrific allegations very seriously and are addressing this matter internally.”

Separate from McMahon’s situation, Dana White, CEO of TKO subsidiary UFC, last year avoided [[link removed]'ll%20have,kids%20do%2C%22%20White%20said.] punishment after a video showed him slapping his wife.

STATUS REPORT Two Up, Two Down

The Providence Journal

BELICHICK⬇ The Atlanta Falcons, the only NFL team to interview Bill Belichick for a head coaching vacancy (twice), have hired Los Angeles Rams defensive coordinator Raheem Morris. The only two current openings left are in Seattle and Washington, which are reportedly not [[link removed]] eyeing Belichick. As noted [[link removed]] by New England Patriots owner Robert Kraft, Belichick has operated using a unique front office approach without a general manager—a tact that some suspect could leave teams reluctant to hire the six-time Super Bowl-winning coach.

KC CURRENT⬆ The NWSL’s Kansas City Current will play the first match in their new $117 million stadium [[link removed]]—the first ever built specifically for women’s soccer—in front of a national TV audience. ABC will broadcast the match against the Portland Thorns on March 16 at CPKC Stadium.

F1 NAMES⬇ Red Bull Racing’s junior Formula 1 team, known as Scuderia AlphaTauri since 2020, is rebranding with new sponsorship for the 2024 season, and it will officially be called … the Visa Cash App RB Formula One Team. How’s it being received? The Guardian’s Giles Richards writes [[link removed]] that it “may be the worst F1 team name of all time.”

ROYAL CARIBBEAN⬆ Inter Miami has signed a new front-of-jersey sponsor: Royal Caribbean International. The cruise line will get plenty of promotion as Lionel Messi plays his first full season with the MLS club.

FUTURE OF SPORTS

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The sports industry is buzzing with conversation about the impact of AI and how it’s transforming the way teams and leagues engage with their fan base.

Our recent virtual summit [[link removed]], Future of Sports: Artificial Intelligence, delved into the success stories and case studies where AI has elevated fan interaction, loyalty, and involvement.

Register and watch on-demand [[link removed]] to be part of the transformative conversation on how AI is reshaping the future of sports.

Conversation Starters Amazon is going ahead with plans for a new docuseries [[link removed]] called The Money Game, which will focus on the impact NIL has made within LSU, including athletes Jayden Daniels, Livvy Dunne, and Angel Reese. Dave Canales had a job selling cowboy boots until he decided to pursue coaching, starting at his own high school. Then he met Pete Carroll and everything changed [[link removed]]. Canales just took the Panthers’ top job, making him the only active Hispanic head coach in the NFL. The NWSL is introducing [[link removed]] its first-ever direct-to-consumer streaming platform, NWSL+. Starting this season, NWSL+ will stream 69 matches for free across the U.S. Editor’s Picks According to USC, There Are No Athletic Department Rules for Players [[link removed]]by Amanda Christovich [[link removed]]In a labor trial, officials testified that the department only has "expectations." Detroit Rock City: Lions’ Postseason Run Sparks More Commerce [[link removed]]by Eric Fisher [[link removed]]Huge spikes recorded in Lions-related ticket, merchandise, and restaurant activity. All the Money Involved in Jim Harbaugh’s NFL Move [[link removed]]by Margaret Fleming [[link removed]]Jim Harbaugh walked away from the biggest contract in college football. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]] Edited by Matthew Tabeek [[link removed]], Adam Duerson [[link removed]]

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