NHL targets Austin and Houston for potential $2bn Texas expansion
The National Hockey League is exploring the possibility of expanding into Texas, with Austin and Houston identified as prime targets during the board of governors meeting in New York on Tuesday.
Discussions regarding the growth of the competition are currently taking place among team owners at their latest summit.
Commissioner Gary Bettman has previously indicated that prospective ownership groups face a staggering entry fee to join the elite ranks.
Any new franchise would likely need to pay at least $2bn (£1.58bn) for the financial logistics to make sense.
Previous expansion success fuels growth
North America’s premier ice hockey competition recently increased its ranks from 30 to 32 clubs following highly lucrative additions.
The Vegas Golden Knights paid $500m to enter the fray for the 2017-18 campaign, notably winning the Stanley Cup within six seasons.
They were followed by the Seattle Kraken, who debuted during the 2021-22 season after securing a $650m expansion agreement.
During this month’s championship series, the league chief reiterated that multiple cities across the continent remain eager to acquire a professional franchise.
Record revenues and rising salary cap
This aggressive territorial strategy coincides with a period of unprecedented financial strength for the sport.
Projected revenues for the current season are expected to reach historic highs of between $7.5bn and $8bn.
Consequently, the player salary cap will rise significantly to $104m for the 2026-27 season.
That figure represents an $8.5m increase from the previous campaign, providing general managers with vital squad-building flexibility.