Wizards, arena, assets valued at $550 million
Capitals owner Ted Leonsis and the estate of late Washington Wizards owner Abe Pollin have agreed on a sale price for the National Basketball Association team and Verizon Center, according to multiple reports.
Leonsis — through a Capitals spokesman — had no comment about the pending sale, which is still weeks away from completion, according to the Associated Press. The two sides have valued the Wizards franchise, the downtown arena and the company’s other assets at $550 million. But there still are hurdles left to overcome, including approval by at least 23 of the 30 NBA owners and, according to the Washington Post, an antitrust review by the Justice Department.
Leonsis and his fellow investors at Lincoln Holdings already hold 44 percent of Washington Sports & Entertainment, the parent company that owns the Wizards, Verizon Center and the local Ticketmaster franchise. The 54-year-old entrepreneur long had an agreement in place with Pollin for exclusive negotiating rights to purchase the rest of Washington Sports upon Pollin’s death. The 85-year-old businessman passed away on Nov. 24. That original agreement with Leonsis was negotiated in 1999 when Lincoln Holdings purchased its portion of Washington Sports and the NHL’s Capitals outright. Through a team spokesman, Wizards representatives also declined comment for this report.
The two sides have been in formal negotiations since Jan. 6. Talks stalled late that month when a Washington Sports representative claimed in internal memos obtained by the Post that the company could be shopped on the open market and Leonsis did not have “exclusive” negotiating rights. That disagreement has since been resolved and the two sides have moved closer to a final agreement.
A Dec. 19 article in Forbes magazine estimated the value of the Wizards at $313 million.
