NHL opens Texas expansion talks with Friedkin group

The NHL has begun a formal look at putting an expansion team in Texas, with Houston and Austin under consideration through an agreement with billionaire Dan Friedkin and his family. NHL Commissioner Gary Bettman said Tuesday the process could lead to a 33rd franchise, though league owners have not voted on adding a team.

Bettman said the executive committee of the NHL Board of Governors backed a term sheet with the Friedkins for a six-month review. He said the combined cost of an expansion fee and a new arena would be about $3.5 billion.

According to Bettman, the discussions had centered mostly on Houston during the past two years before Austin entered the talks. He said either city would need a new arena, and the league and Friedkin group will study which location works better.

The Friedkin family said in a statement released through Pursuit Sports that it had secured exclusive rights with the NHL to pursue a franchise in South Texas, with Houston and Austin as the focus. The family said it would assess the two cities carefully and cited both markets’ infrastructure, fan bases and economic strength.

No expansion vote yet

Bettman said the NHL has not committed to expansion, and a full board vote would come only if the parties choose to proceed. Montreal Canadiens owner Geoff Molson, a member of the executive committee, described the matter as an exploration rather than a final decision.

The commissioner said league officials also received updates on possible efforts in Atlanta and Arizona. Bettman said those discussions are not as advanced as the Friedkin opportunity in Texas.

Forbes estimates Friedkin’s net worth at $6.4 billion. The Friedkin Group, based in Houston, has interests in autos, entertainment, hospitality and sports, including holdings tied to Everton and AS Roma, according to the company background cited in the announcement.

An NHL team in Houston or Austin would expand the league beyond its current 32 clubs. The NHL added the Seattle Kraken in 2021 after the Vegas Golden Knights began play in the 2017-18 season; before that, Columbus and Minnesota joined in 2000.

Expansion fees have climbed sharply, according to Bettman’s comments and league history. Seattle paid $650 million to enter the NHL, while Las Vegas paid $500 million.

The league has grown across warmer-weather and newer hockey markets over several decades, with teams added in Florida, California, Tennessee and Nevada, and relocations bringing clubs to Dallas, Raleigh and Denver, among other cities. According to the NHL history cited by Bettman, teams from those markets have won the Stanley Cup in each of the past seven seasons and 13 times since Colorado’s 1995-96 title run.

Penguins sale approved

Bettman also said the Board of Governors approved the sale of the Pittsburgh Penguins from Fenway Sports Group to the Hoffmann family. He said the transaction, first reached a year ago, values the team at $1.7 billion to $1.75 billion.

In a team statement, incoming NHL governor Geoff Hoffmann called the approval a defining moment for his family. He said the Hoffmann family plans to support general manager Kyle Dubas, hockey operations and the Penguins’ business leadership while becoming involved in the Pittsburgh community.

This story draws on original reporting from Fortune.