Hockey Heads South
NHL Board Discusses Texas Expansion, Eyes Houston and Austin with $2 Billion Fee
Key Points
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NHLPA player poll results show Houston as the preferred expansion target among players, with 34.3% voting for Houston and Quebec City receiving 16.9% for a potential second team.
Historical expansion fees set the precedents: Vegas Golden Knights paid $500 million to join in 2017-18, and the Seattle Kraken paid $650 million in 2021-22.
Dan Friedkin-led group discussed Houston expansion with the NHL about a year ago; Friedkin has a reported net worth of about $6.4 billion and recently acquired 98.8% of Everton.
The NHL has launched a formal six-month expansion process targeting Texas, with Houston and Austin competing to land the league's 33rd franchise, ESPN reported on June 23. Commissioner Gary Bettman announced the Friedkin family has been granted exclusive rights to evaluate both cities — and the price tag is steep: a $2 billion expansion fee, plus roughly $1.5 billion for a new arena.
The announcement came out of the NHL Board of Governors meeting in New York City. Houston is the clear frontrunner. In the latest NHLPA player poll, 34.3% of players named Houston as their top expansion pick, according to TSN — more than double the support for second-place Quebec City at 16.9%.
Dan Friedkin Leads the $3.5 Billion Texas Bid
The Friedkin Group, led by billionaire Dan Friedkin, is the ownership group driving the expansion push. Friedkin has a reported net worth of $6.4 billion, according to Forbes. His sports portfolio already includes AS Roma in Italy's Serie A and a 98.8% stake in English Premier League club Everton. His sports management arm, Pursuit Sports, holds the exclusive rights to pursue the Texas franchise.
The total investment is projected at $3.5 billion — $2 billion for the expansion fee and $1.5 billion for a new arena, according to the New York Post. That is a massive jump from recent expansion fees. The Vegas Golden Knights paid $500 million to join the league in 2017. The Seattle Kraken paid $650 million in 2021. Bettman has made clear that both Houston and Austin would need a brand-new, state-of-the-art arena to win the franchise.
Houston vs. Austin: The Arena Race Begins
Houston is the fourth-largest city in the United States and has long wanted an NHL team. The city lost its AHL team, the Houston Aeros, in 2013. Houston's existing arena, the Toyota Center, is home to the NBA's Rockets — but the NHL considers it insufficient for a long-term hockey home, according to Arizona Sports.
Austin is the underdog, but it has a real case. The city is one of the fastest-growing tech hubs in the country. It currently has no "Big Four" pro sports team, which some analysts compare to Las Vegas before the Golden Knights arrived. Click2Houston noted that Austin's AHL team, the Texas Stars, already plays nearby in Cedar Park — giving the market a built-in hockey fan base.
NHL Revenue Hits Record Highs as Cap Climbs
The expansion push comes as the NHL is flush with cash. The league projects revenue of between $7.5 billion and $8 billion this season, driven by media deals with ESPN and TNT. The salary cap for the 2026-27 season is set at a record $104 million — an $8.5 million jump from the prior season — according to Sportsnet.
A 33rd team would make the NHL the largest professional sports league in North America, ahead of the NFL, NBA, and MLB, which each have 30 to 32 teams. Bettman has framed the Texas expansion as a bet on massive corporate wealth and population growth. TSN analyst Pierre LeBrun noted that pitting Houston and Austin against each other is a deliberate strategy — forcing both cities to offer the best possible arena deal to win the franchise.
Quebec City Fans Feel Left Out Again
Not everyone is happy. Canadian fans, especially in Quebec City, are frustrated. The city has a ready-made arena — the Videotron Centre — and a passionate fan base that lost the Nordiques in 1995. In the NHLPA player poll, 16.9% of players backed Quebec City, making it the second-most popular choice after Houston, according to Fox News.
But the league is clearly chasing the corporate money of the Sun Belt over nostalgia. Atlanta came in third in the player poll at 9.8%, and Austin received just 5% of player votes despite being part of the formal evaluation. The NHL's six-month review with the Friedkin group will determine which Texas city gets the nod — with a decision expected by late 2026.
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