Bettman cools NHL expansion talk as Texas process continues

NEW YORK — Houston, we do not have liftoff. At least not yet.

On Tuesday, NHL commissioner Gary Bettman grounded talk of expansion to the booming city — or to the capital of Texas — being imminent just three months after announcing the opening of a process to explore the feasibility of a second franchise in the Lone Star State.

It was after the June board of governors meeting that Bettman announced the NHL was granting exclusivity to possible expansion in Houston or Austin to the Friedkin family, with Dan Friedkin, the CEO of the Friedkin Group, serving as the prospective owner of what would become the NHL’s 33rd franchise. He added that expansion to either city would require an approximate $3.5-billion investment from the family, which would include the expansion fee to the NHL and the cost of construction for a new arena. A six-month timeline to further explore both locations was also announced.

But as of Tuesday afternoon, the commissioner was unwilling to suggest the NHL was doing anything other than due diligence on a serious bidder for potential expansion.

“Expansion is a multibillion-dollar transaction, which has an impact on all the other clubs in the league,” Bettman said following Tuesday’s four-hour board of governors meeting at Peak Hudson Yards. “A lot of I’s have to be dotted and T’s have to be crossed, and if there’s going to be expansion, three-quarters of the governors are going to have to be comfortable that this makes sense to them. And that’s not something you do overnight.”

“We’re not under any time constraint,” Bettman added. “This isn’t a situation where we said, ‘We’re going to expand by X date, get your applications in.’ We’re dealing with unsolicited — but we’re grateful to have them — expressions of interest. And it’ll sort itself out on whatever timetable makes sense to everybody.”

When asked if the board would be in a place to vote on expansion to Houston or Austin at its December meeting, NHL deputy commissioner Bill Daly reiterated Bettman’s statement.

“I don’t think we’re putting time limits on things,” Daly said. “We’re working through the process. (The Friedkin Group is) working through the process. Originally, we contemplated at least knowing where we are in December. I expect we will certainly know a lot more than we do now come December, but I don’t think there’s any magic date by which something has to get done or not get done.”

Daly added he got a full briefing from the Friedkin Group last week, that he exchanged communications with them once again on Tuesday morning, and that the league was going to “in the relatively near future” meet to have a more thorough understanding of what the Friedkin Group has done and the information it’s put together related to prospective arena sites.

Bettman said they expect to know which city the Friedkin Group prefers to move forward with before the end of 2026.

Meanwhile, the league has received several expressions of interest, with two groups in Atlanta making progress on arenas with the intention of bidding for an expansion team there.

“We’re waiting on some information,” said Daly, “but I can see us being in a position where we might want to do a feasibility study.”

“Particularly as to location,” said Bettman.

Columbus Blue Jackets general manager and alternate governor Don Waddell, who was formerly team president of the now-defunct Atlanta Thrashers, opined to Sportsnet that Atlanta’s feasibility as a strong prospective NHL market is all about “location, location, location.”

“From everything I’ve heard, if Atlanta was to get an expansion team, which I have no idea if they will, they’ll go north of the city,” Waddell said. “Going downtown on any day of the week was tough on people. When I was there, 85 per cent of our season ticket holders lived north of the city, so I think location, location, location’s going to be the key to having the best chance to succeed.”

The Thrashers, like the defunct Atlanta Flames before them, played in downtown Atlanta. Both franchises also faced insurmountable challenges due to rocky ownership and the transient nature of the population in the city.

“Nobody was from Atlanta,” said Waddell. “Almost everyone had moved there from some place else.

“But I think it’s changing now. That was 2010-11, now it’s 15 years later. My daughter, my grandkids live there. In some places, hockey is booming. They need more rinks because it’s booming right now. Whether the league decides to go there or not, it’s got a good chance of success if that decision is made.”

Sources who spoke on the condition of anonymity Tuesday told Sportsnet they believe in Arizona’s viability as an NHL hockey market, but despite more than one expression of interest from the Phoenix area, Bettman said until an arena building site is established and approved, it’s a non-starter.

It’s unclear at this point if any teams there or elsewhere will be added to the NHL in short order.

As Bettman reiterated, the league isn’t actively pushing expansion.

“This is not like we’ve done expansion before where we say, ‘We want to expand. If you want to be part of the league, get your application in by a certain date and we’re going to go through a process.’ This is a little more grassroots-oriented, if you would. It’s emerging holistically from places that have a genuine interest and have solicited us.”

Succession plan for Bettman not in place, but to be discussed

Shortly after Washington Capitals owner Ted Leonsis was unanimously voted in by fellow governors to be Jeremy Jacobs’ successor as chairman of the board, he was asked about a succession plan for Bettman, who’s been commissioner of the league since February of 1993.

“We haven’t been talking about succession specifically here,” Leonsis said. “But it’s the most important job for a board of directors of a public company. So, I think when the time’s right, (vice chairman) Murray (Edwards) and I and the executive committee and everyone will be working on what’s the right answer.’’

Bettman, however, isn’t planning on stepping down from his role anytime soon.

“We have nothing to announce,” Bettman said. “But listen, I’m going to be 75 years old. I think this is my 35th year (as commissioner). Historically, I might be the longest-serving commissioner ever, not just currently. At some point I got to stop, ok?

“But I love what I do. I’m energized. I have nothing to complain about in life. I love coming to work every day, I love being part of this game. So, you know, you keep trying to kick me out and at some point, you’re going to get a different answer. But this isn’t that point, because no decisions have been made.”

The announcement of Leonsis as chairman of the board came with confirmation that Flames owner Murray Edwards will serve as vice chairman.

Speaking to reporters, Edwards stressed that he felt it was important for a Canadian team to be represented atop the board and pledged to continue pushing the issues that impact the NHL’s seven Canadian franchises.

“When we talked about a transition at the chairman role, I thought it was important to have balance,” Edwards said. “By having Ted there, clearly the American (market) is a big part of the NHL, but I felt it was very important to have Canadian representation so I think being there at the vice-chairman level (I) can make sure the Canadian perspective is brought to the table.”

Canadian hockey fans have been anxious in recent years as the Stanley Cup has routinely been awarded to teams in places like Florida and Nevada that don’t have state-level income tax, while multiple American-born stars drafted to Canadians teams have moved to teams in the United States at the first chance they could.

Edwards was asked about those challenges and said they are topics he’s been talking to Bettman and Daly about for years, and will continue to do as vice chair.

“I think the challenges that the Canadian teams have are broader than just hockey, I think it has to do with the overall economy. And I think that the discussions in governance is how do we make the Canadian economy become more vibrant and grow in the future,” Edwards said.

“Taxes is clearly something that I do talk to Gary about. That’s not just a challenge for Canadian teams, that’s also a challenge for some U.S. market teams. I think that’s something we have to continue to look at.”

• On whether NHL expansion would be preferable to 34 rather than 33 teams, Bettman said, “Symmetry is not required. When we expanded to Vegas, we were asymmetrical, and we decided to go to Seattle because it makes sense — not because we wanted an even number.”

• NHL revenue projections for this upcoming season are north of $8 billion in mixed dollars (USD and CAD).

• When questioned on regional television rights, Bettman said teams were free to make the deals that best serve their markets, whether it be by continuing with regional television, having the league help with production, or opting for streaming services.

• Bettman said the governors were given a presentation on AI so that teams could be up to speed with the best ways to optimize engagement with fans.