On Dec. 13, 2023, Washington Capitals, Mystics, and Wizards owner, Ted Leonsis, along with Virginia Governor, Glenn Youngkin, announced a proposal for a $2 billion sports entertainment district in Alexandria.

The district would be in the Potomac Yard area and would span over 9 million square feet. Amenities include an arena for both the Washington Capitals and the Washington Wizards, a Monumental Sports Network media studio, a Wizards practice facility, a performing arts venue, an esports facility, and other communal and retail spaces. Currently, the plan is pending legislative approval. If approved by the Virginia state legislature, and the Alexandria City Council agrees to the proposal, the district will be completed in 2028.

Benefits for the proposed construction include an estimated creation of 30,000 jobs over time. The Arena itself is expected to have a $12 billion impact for the Commonwealth and City of Alexandria.

This would be Virginia's first time having a major sports team since the Virginia Squires, who played in the American Basketball Association before they merged with the National Basketball Association in 1976.

The proposal for moving the teams comes from Leonsis wanting $800 million in renovations. In a final proposal, Mayor Muriel Bowser offered to finance $500 million. The final decision is yet to be made, but if approved, the teams will still be near Washington D.C.