Explaining ins and outs of NHL exploring an expansion team in Texas - TSN
The National Hockey League (NHL) has initiated a process to explore the feasibility of establishing an expansion team in Texas, focusing on Houston or Austin. This development follows an agreement between the league and the Friedkin family, led by Dan Friedkin, to evaluate these potential markets. The exploration phase is expected to last approximately six months.
Commissioner Gary Bettman announced the agreement after a meeting of the Board of Governors, indicating that the Friedkin family would be the prospective owners of what would be the league’s 33rd franchise. The total investment for this project is estimated at around $3.5 billion, which would cover both the expansion fees for existing owners and the construction of a new arena.
The Friedkin family, through their global sports ownership platform Pursuit Sports, confirmed the agreement, stating it grants them exclusive rights to bring an expansion team to Texas. Their statement highlighted that both Houston and Austin possess the necessary infrastructure, passionate fan bases, and economic strength to support a successful franchise.
A key requirement for either city is the construction of a new arena. While Houston’s downtown arena is publicly owned, it is controlled by Tilman Fertitta’s Clutch City Sports and Entertainment group. In Austin, the home of the American Hockey League’s Texas Stars in Cedar Park has a capacity of 8,000, which is considerably smaller than the smallest current NHL rink. Experts suggest that the revenue potential from new arenas, particularly through luxury boxes, is a significant factor for the league.
The league’s interest in Texas is partly driven by the substantial market sizes of these cities. Houston, with nearly 2.4 million residents, ranks as the fourth most populated U.S. city, while Austin, with just over 1 million, is among the top 12. Austin’s population has doubled since the mid-1990s and has seen a recent influx of residents, making it an increasingly attractive market, particularly as a growing tech hub.
Historically, Houston has had a connection to professional hockey. The city hosted the Houston Aeros of the World Hockey Association from 1972 to 1978, a team known for featuring Gordie Howe and his sons. An AHL team also named the Aeros played in Houston from 1994 to 2013. The Texas Stars have been based in Austin since 2009, indicating existing hockey interest in the region.
Expansion Considerations and Market Dynamics
One of the benefits of expanding into a non-traditional hockey market like Texas is the opportunity to grow the sport. Previous successes in cities such as Las Vegas and Tampa, Florida, demonstrate the potential for hockey in the Sun Belt when strong ownership is involved. The league has seen successful franchises emerge in southern cities, contrasting with earlier expansion efforts that faced challenges due to ownership issues, such as the Atlanta Thrashers and the Arizona Coyotes.
Adding a 33rd team would also create more opportunities for players, with an estimated 20-23 additional NHL players and minor league hopefuls. The evolving landscape of hockey development at the junior and college levels, combined with international talent, suggests a robust pool of skilled players available for expansion.
Commissioner Bettman clarified that the Dallas Stars do not hold territorial rights that would prevent the league from adding a team in Houston or Austin. He expressed that the Stars would likely view a new team as beneficial for hockey in Texas.
The Board of Governors did not hold a formal vote on the expansion proposal but had an extensive discussion with the Executive Committee, which endorsed the framework of the agreement with the Friedkin family. The league is comfortable with an odd number of teams, as was the case when the Vegas Golden Knights joined as the 31st franchise.
While the Friedkin family’s pursuit in Texas is currently the most advanced, discussions regarding other potential expansion markets, including Atlanta and Arizona, were also held. The league established a franchise in Utah two years ago when the Smith Entertainment Group purchased the hockey operations and franchise rights of the Arizona Coyotes for $1.2 billion, relocating them to Salt Lake City.
What Comes Next
Following the completion of this six-month exploratory phase, historical precedent suggests that a season-ticket drive would be a subsequent step to gauge public interest. Such drives were instrumental in validating interest for the Vegas Golden Knights and Seattle Kraken expansion teams.
Ultimately, if the league and the Friedkin family reach a conclusion to proceed, the proposal would then be subject to a vote by the full Board of Governors. The NHL has been a 32-team league since the Seattle Kraken’s debut in 2021-22.
Source: tsn.ca
