One of the oldest mantras in politics is that all politics is local. If the past decade has made it hard for you to believe that’s true anymore, you’re forgiven.
Instead, thanks to social media, some communities have seen city councils and school boards dysfunctional because of pointless national debates, and national debates creating local nightmares.
But really, that mantra is a mantra for a reason: it’s still true — just ask Ted Leonsis, Washington, D.C., owner of the NBA’s Wizards, NHL’s Capitals and WNBA’s Mystics.
During a wide-ranging conversation on my podcast, “Chuck Toddcast,” Leonsis spoke in depth with me about the lessons he learned from his brief attempt to relocate his sports empire from downtown Washington, D.C., to Alexandria, Virginia, just five miles away (at least that’s what he initially thought). The Potomac River may be a thin line between Washington, D.C. and Virginia, but it’s a huge gap to cross in perception.
This week on NBC News’ Chuck Toddcast, Ted Leonsis shares what he learned after attempting to relocate the Washington Capitol and Wizards from Washington, D.C. to Virginia. Sign up to receive new episodes of The Chuck Toddcast every Wednesday and Friday. Apple Podcasts, Spotify Or wherever you listen to podcasts.
“Well, you know, I learned a lot, you know?” Leonsis said. “I hope … Mayor Bowser gives me the honorary title of Deputy Mayor of Downtown DC. We were thinking about relocating 3.5 miles away. I wasn’t going to go to Indiana in the middle of the night, was I? But it turns out I was wrong.”
Ultimately, a deal Leonsis and Virginia Governor Glenn Youngkin agreed to to move the team to Alexandria fell apart after opposition from the Virginia General Assembly. After initially failing to reach an agreement, Leonsis and the Washington, D.C., government under Bowser struck their own deal in March.
Leonsis, a technology industry veteran, was an early participant at AOL and also offered his views on the future of the sports and media industries.
He believes the size and power of the DC media market is much larger than the “DMV” or Beltway region. He sees the market stretching from Richmond to Delaware.
“We have an opportunity to make D.C. one of the four most important markets in North America,” Leonsis said, adding, “That’s why we own the teams, the venues and the network that carries the games. And we can sell direct to consumer, because that’s the future.”
Leonsis also spoke about the decision to accept an investment from Qatar’s sovereign wealth fund, highlighting the difference between a growing trend of hedge funds buying sports teams directly and minority investors like sovereign wealth funds looking for safe, long-term investments.
“I think private equity is a bigger problem than pension fund or sovereign wealth fund investments because private equity wants an exit. They want some control,” said Leonsis, who, in his analysis, says sovereign wealth funds have no control or say.
“You’re an investor, not a partner,” Leonsis continues. “You don’t get financial information. You meet with the owners once a year, you meet with the league once a year. We don’t put them on a list. They’re investors. They have no influence. They’re completely passive investors. It’s been good for them because pension funds look at sovereign wealth funds in a similar dynamic: a 50-, 100-year safe haven, and they look at the league as something that’s been around for 100 years.”
If you’re interested in the future of sports ownership, the future of sports media, and the role politicians and financiers will play in both going forward, be sure to listen to the entire conversation, as we cover a variety of topics from the possibility of a Washington, DC-area college basketball tournament to exploring further ways to prevent talented high school basketball players from leaving the DMV to attend George Washington University (my alma mater) or Georgetown University (his alma mater), or even the University of Maryland, George Mason University, or James Madison University.
You’ll also get to hear his thoughts on whether or not the nastiness of national politics is negatively impacting Washington’s ability to sign free agents to play in the city, and if you’re a true DC sports fan, don’t miss his thoughts on Alexander Ovechkin vs. Bradley Beal!
