NEW YORK — The NHL has signed a term sheet with Houston-based billionaire Dan Friedkin that grants him exclusive rights to bring an expansion franchise to either Houston or Austin. Friedkin and the league will jointly explore over the next six months which South Texas market is more feasible based in part on the capability to build a new arena.
NHL Commissioner Gary Bettman, who informed the league’s existing owners of the news Tuesday at a board of governors meeting, said the total investment — including both the expansion fee and cost of building a new arena — would be $3.5 billion, declining to go into further detail.
Expansion would still require a board vote following the six-month exploration period.
“We have been in discussions for the better part of two years with the Friedkin family, principally about Houston as an expansion opportunity,” Bettman said. “But as we continued to focus with them, particularly on the need for a new arena in Houston, the discussions morphed into also a discussion about Austin, which would also need a new building.”
Bettman added, “Both cities will require a new arena. It may be more feasible in one place than the other, and as we dig a little deeper and do the due diligence, we’ll figure out which makes the most sense.”
The Friedkin family issued a statement, saying in part, “Each city brings unique attributes that would make a new team a huge success — both have the infrastructure, passionate fan bases and economic strength needed to support a championship-caliber franchise for years to come.”
Friedkin’s sports holdings under the Pursuit Sports umbrella include Italian soccer club A.S. Roma (Serie A), Everton F.C. (English Premier League) and A.S. Cannes (French Championnat National 2). Forbes estimates his net worth at $11.5B.
A Houston or Austin franchise would be the NHL’s second in Texas, joining the Dallas Stars in the country’s second-most populous state. Bettman said the Stars would not be entitled to compensation in exchange for the addition of another team in Texas, saying franchises’ territorial rights “don’t extend that far.” Both cities are around 200 miles south of Dallas.
The two markets offer different value propositions for the NHL and Friedkin. The Houston–Pasadena–The Woodlands region is the country’s fifth largest metropolitan area in the U.S. by population with 7.9 million people, while Austin–Round Rock–San Marcos ranks 25th with 2.6 million residents. The NHL, however, would be the last of the “Big Four” sports leagues to arrive in Houston, whereas it would be the first to land in Austin (joining MLS’ Austin FC).
Bettman noted the NHL has been successful before by being a first mover into smaller markets, pointing to the success of the Golden Knights in Las Vegas.
The NHL would become the largest of the “Big Four” by expanding beyond 32 teams, but unlike the others, seven of the NHL’s clubs are based in Canada. Bettman has consistently said that NHL has room to grow in the U.S. given that it only has 25 teams in the country. The league’s most recent additions through expansion are the Golden Knights in 2017 for $500 million and the Kraken in 2021 for $650 million.
