The block where the arena was built, between 6th and 7th and F and G Streets, historically held a mix of residences and small businesses. By the 1960s, it was suffering from
urban decay, like much of the eastern end of
Downtown Washington. Capital Landmark Associates was selected in 1979 to develop the site with a planned mixed-use complex including retail, offices, apartments, and a hotel. In December 1993,
Abe Pollin, the owner of both teams, began studying options to move the teams to a new arena to be built with public financing, with possible locations including Baltimore, downtown Washington, and
Laurel, Maryland. A group of Washington business leaders brokered a deal between Pollin and the District government to build an arena at the Gallery Place site, with the District paying for the $150 million project, which was envisioned to have shopping, food, and exhibitors for daily use even when there was no arena event. The
D.C. Council approved a special tax on businesses to finance the deal. With the arena deal facing criticism amid the
District's budget crisis, Pollin eventually agreed to privately fund the construction of the building, which ultimately came to $200 million (US$ in dollars). The District would pay for other costs, including purchasing the portion of the land it did not already own, preparing the site, and expanding the Metro station; these eventually amounted to $79 million (US$ in dollars). The District leased the land to Pollin at a below-market rate of $300,000 per year. A
naming rights deal was struck with
MCI Communications to name the arena as the
MCI Center. The
groundbreaking ceremony for the project was held in October 1995. On December 2, 1997, the arena held its first event, a game between the Wizards and the
Seattle SuperSonics, with President
Bill Clinton in attendance. The arena had a
Discovery Channel Store from 1998 to 2001 and the MCI National Sports Gallery, an interactive sports museum with interactive games, memorabilia, and the American Sportscasters Hall of Fame inside from 1998 to 2000 or 2001 which was repurposed for office space. Clinton toured the gallery before the game, playing the museum games. A block of F Street NW between 6th and 7th Street NW outside the arena was declared Fun Street, complete with signage. This block later was declared Abe Pollin Way in 2007. The arena was noted for building spectator seats vertically rather than out, creating better views for all attending albeit with limited leg room in the upper levels, as well as spacious quarters for players and coaches with advanced competitive research technology. The arena concourse featured multimedia arenaNet stations where fans could check scores, watch highlights, and send digital postcards over email. These replaced an abandoned idea to have smart seats with televisions and technology that was scrapped due to technological challenges. Arena technology was powered by a virtual LAN software and switching technology called ArenaNET from
Cabletron Systems. In 1999, a group led by technology executive
Ted Leonsis bought a 36% stake in Pollin's holdings, including the MCI Center, as well as full ownership of the Capitals. The Leonsis group increased its stake to 44% in 2000. The following year, in 2007, the "first true indoor high-definition
LED scoreboard" was installed in the arena. In May 2024, VIDA Fitness announced that they would close their Gallery Place location. Gallery Place, a 14-screen movie theater, opened at Capital One Arena in 2004. In June 2010, following Pollin's death in November 2009, the Leonsis group, newly organized as
Monumental Sports & Entertainment, bought out Pollin's interests, gaining full ownership of the arena and the Wizards. A report emerged in May 2015 that Verizon would not renew its naming rights to the Verizon Center when its agreement with Monumental was to end in 2018. In the same week, it was announced that
Etihad Airways signed a deal to become the official airline of the arena, sparking speculation that Etihad might be the leading contender to assume naming rights in 2017. However, on August 9, 2017, it was announced that the bank
Capital One had purchased the rights, renaming the venue Capital One Arena. In October 2024, it was revealed that Etihad Airways is no longer the official airline for Capital One Arena as
United Airlines (which operates a hub at
Dulles International Airport) was chosen as the new official airline. 2025. In 2019 and 2020, Monumental Sports undertook a $30 million renovation of the arena. This included completely replacing the arena's seating, improving the concourse, and altering many of the arena's dining options. A new, larger overhead video board was also added as well as a new SkyRing video screen that goes around the top of the arena. In July 2020, bookmaker
William Hill opened a
sportsbook at the arena, following the 2018 legalization of sports betting in Washington. It was the first brick-and-mortar sportsbook in the District, and the first to open at a professional sports venue in the United States. Monumental later pivoted to a part of the National Landing area lying in a different Northern Virginia jurisdiction, announcing on December 13, 2023, that it planned to build the new arena in the
Potomac Yard area of
Alexandria. Under the revised plan, Capital One Arena would have remained in use as a concert and event venue during the NBA and NHL seasons, and also become the permanent home of Monumental's
Women's National Basketball Association (WNBA) team, the
Washington Mystics. In March 2024, after officials in Alexandria announced that the $2 billion entertainment and sports complex plans were scrapped, Washington, D.C. mayor
Muriel Bowser announced that she had signed a deal with both teams' majority owner, Ted Leonsis, to keep the Capitals and Wizards in the District "at least until 2050." The deal will see a massive renovation to the arena which will be completed by 2028 in six phases, changing the exterior and interior that will include new technology and improved fan experiences. in Ohio march at an indoor Presidential Inauguration parade event in Washington on Monday, January 20, 2025. Capital One Arena is undergoing a multi-year $850 million renovation that will completely alter the exterior and parts of the interior of the arena. $515 million is coming from the District of Columbia government, while the rest is being paid for by
Monumental Sports and Entertainment, which owns the teams. The renovation is expected to be completed in time for the start of the 2027-2028 NHL and NBA seasons. The indoor parade of the
second inauguration of Donald Trump took place in the arena on January 20, 2025. ==Sports==