Austin Joins the Race for Next NHL Expansion Team

A fifth city has joined the competition for the next National Hockey League expansion franchise. With a new Collective Bargaining Agreement coming, the league is open to taking expressions of interest from new markets.

The Contenders Emerge

The NHL has informed interested parties that the expansion fee will be $2 billion. Atlanta, Houston, Indianapolis, and New Orleans were the four cities shared with the Board of Governors at their annual meeting. Austin, Texas, has generated considerable interest as the fifth potential location.

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According to sources, Gary Bettman stated, “We have no pending applications and we’re not seeking to initiate a formal process at this point.” The league will likely expand to 34 teams, maintaining geographical alignment by putting one team in both conferences.

The real estate market in Austin, Texas, is booming, with the population nearing one million. It’s a growing tech hub where money has been flowing in from California and beyond, making it an attractive location for a new team. For example, Austin’s population grew by over 20% between 2020 and 2023, making it one of the fastest-growing major metropolitan areas in the US (U.S. Census Bureau).

Examining the Market’s Potential

Bobby Orr, a Hockey Hall of Fame legend, has been linked to the Forsyth group, advising on their NHL bid. Austin is approximately 195 miles from Dallas, which is comparable to the distance between Edmonton and Calgary. Currently, the Texas Stars have had considerable success in the AHL, playing at the H-E-B Center in nearby Cedar Park.

For consideration, any successful expansion bid has to meet four requirements: well-funded ownership, an NHL-ready arena, a growing market, and the ability to make the NHL better. The $2 billion price tag may be difficult to refuse. The NHL split $500 million for Vegas and $650 million from Seattle, and that 4x growth from 2017 to now indicates exploding franchise values.

Negotiations and Future Plans

The NHLPA twice asked for a cut of expansion fees for players in the latest negotiation but was declined. Bettman said, “That’s not something that’s in the Collective Bargaining Agreement.” The potential for new teams is growing, with the league carefully considering its next steps.