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Nothing is imminent. But donât be surprised to see speculation about expansion in the National Hockey League turn into something more concrete within the next few years.The introduction of the Vegas Golden Knights and Seattle Kraken has been a win for the league on many levels. Existing owners have happily pocketed their share of the expansion fees â $500 million for Vegas and $650 million for Seattle â which were not counted as hockey-related revenue which needs to be shared with the players.
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But the players have benefitted as well. Two additional teams means up to 64 new jobs at hockeyâs top level. The rabid appetite for tickets and merchandise in both markets has funnelled cash into the HRR pool which is split evenly between players and owners. And the young fanbases are strong enough that the Kraken will host the 2024 Winter Classic outdoors at T-Mobile Park on New Yearâs Day â with the Golden Knights as the opponent.
Meanwhile, new potential owners are seeing franchise valuations explode across all major sports. And with the Golden Knights now perched at the top of the NHL mountain as Stanley Cup Champions after just six years in operation and the Kraken having not just reached the playoffs in their second year of existence but also having upset the defending Colorado Avalanche, itâs clear that the leagueâs current expansion model makes it possible for new franchises not just to make money, but also to quickly compete at the highest level.
Even before their Cup win, Vegas was valued by Forbes at $965 million in December of 2022 â a very tidy return on investment for owner Bill Foley. Seattle, the younger cousin, came in at a whopping $1.05 billion, 10th highest in the league in just its second year of operation.
When asked about future expansion at the NHLâs board of governors meetings in New York City last week, commissioner Gary Bettman wasnât shy about name-checking a number of markets.
âWe have continuous expressions of interest from places like Houston, Atlanta, Quebec City, Salt Lake City, but expansion isnât on the agenda,â he told reporters on Oct. 4. âIf something were to progress along where you say, âWell, this could be ready to go,â then Iâll bring it to the owners and weâll discuss it. But weâre not in a mode where Iâm saying, âOK, if youâre interested in expansion, submit your applications and weâll evaluate them,â like weâve done previously. Weâre not there.â
Of those four markets, the NHL has been in Quebec City before and in Atlanta, twice. The Quebec Nordiques were absorbed from the NHLâs merger with the World Hockey Association in 1979 and lasted until 1995 before relocating to Denver to become the Colorado Avalanche. A new arena, the Videotron Centre, opened in Quebec City in 2015 and expansion applications have been submitted. But so far, Quebec City has been rebuffed as the league focused its expansion on the Western U.S.
Posted Oct 9, 2023, 10:45 AM UTC