Ted Leonsis Eyes MLB and MLS to Expand Washington D.C. Sports Empire

Ted Leonsis Pursues Expansion of Washington D.C.’s Sports Empire Through MLB and MLS Acquisitions

Since acquiring the NHL’s Washington Capitals in 1999, Ted Leonsis has steadily expanded his sports holdings through Monumental Sports & Entertainment (MSE), creating a dominant presence in the Washington, D.C. market. The company now controls the Capitals, NBA’s Washington Wizards, WNBA’s Washington Mystics, Capital One Arena, and the Monumental Sports Network, which broadcasts local games. According to CNBC’s Most Valuable Sports Empires 2025, MSE is valued at over $7.84 billion, ranking 19th nationally.

Leonsis has maintained a focused regional strategy, operating MSE much like a technology or branded platform company. Each team operates independently but shares centralized resources including sponsorships, ticket sales, and media rights, creating operational efficiencies. “Coca-Cola has 100 brands, but one truck that delivers all the brands,” Leonsis analogized during CNBC Sport and Boardroom’s Game Plan conference.

Ambitions to Add MLB and MLS Franchises

Leonsis openly expressed his intent to acquire Major League Baseball and Major League Soccer teams in the region, emphasizing the strategic advantage of integrating these franchises into MSE’s platform. “I’m unabashed; I want to buy the MLS team. I want to buy the baseball team,” he said, noting that such acquisitions would bolster competitiveness against dominant teams like the Yankees and Dodgers by leveraging MSE’s operational model.

However, efforts to secure these teams have so far been unsuccessful. Leonsis reportedly engaged in discussions with David Rubenstein of the Carlyle Group about a joint bid for the Baltimore Orioles, but the group ultimately purchased the team in 2024 for approximately $1.725 billion. Similarly, the Lerner family, owners of the Washington Nationals, considered a sale in 2022 but withdrew the team from the market in 2024 despite Leonsis’s reported $2 billion offer.

Challenges Amid Rising Valuations and Market Dynamics

Leonsis acknowledged the difficulty of entering today’s sports franchise market, citing soaring valuations and debt burdens. “I wouldn’t be able to afford to buy a team today,” he remarked, highlighting that entry costs now often involve billions of dollars in debt earmarked for acquisition rather than operations.

While MLS’s D.C. United has increased its valuation to over $800 million through minority investments, the team is not currently for sale. Leonsis is also exploring opportunities beyond traditional sports, including lacrosse and women’s hockey, as well as partnerships with teams like the NWSL’s Washington Spirit, which are outside MSE’s ownership.

Strategic Platform Model and Future Growth

Monumental’s platform approach has attracted significant outside investment, including a 5% stake sold to the Qatar Investment Authority (QIA) in 2023, which valued MSE at roughly $4 billion at the time. Leonsis emphasizes that QIA is a passive investor rather than an active partner.

Operating similarly to a Software-as-a-Service (SaaS) company, MSE generates approximately $750 million in annual revenue, with projections to reach $1 billion within three years. Leonsis highlighted that 70% of this revenue is contracted long-term through subscriptions, season tickets, and suite sales, drawing parallels to enterprise software firms like Oracle and Salesforce.

Regional Focus Versus Broader Expansion

Despite opportunities abroad, Leonsis remains committed to the Washington, D.C. market. Reflecting on a 2019 visit to London, where he observed NBA owners bidding for Chelsea FC, he concluded that expanding outside his home market would be “inauthentic” and difficult to add value.

Not all local initiatives have been smooth; MSE faced criticism after plans to relocate the Capitals and Wizards to a new $2 billion complex in Virginia fell through in 2023. Subsequently, MSE negotiated with Washington, D.C., officials to renovate the existing Capital One Arena.

Leonsis reaffirmed his commitment to the region: “I’m just going to stay in my 10 million household area.”