Easy to see NHL expansion in not-so-distant future
NEW YORK — Listening to commissioner Gary Bettman, you don’t have to squint very hard to see the NHL expanding to become the world’s first 33 or 34-team professional sports league in the not-so-distant future.
While Bettman reiterated after Wednesday’s annual preseason Board of Governors meeting at the Hilton in midtown Manhattan that the NHL is not ready to open a formal expansion application process, the league continues to field expressions of interest, and Bettman appears to open to the idea.
“The best answer I can give you is yes, we have continuous expressions of interest from places like Houston, Atlanta, Quebec City, and Salt Lake City, but expansion isn’t on the agenda,” Bettman said. “But we’re not in a mode to say ‘OK, if you’re interested in expansion, submit your applications, and we will evaluate,’ as we have done previously.”
“We aren’t there yet, and it’s just an expression of interest. As you all know, I take meetings all the time on a variety of subjects, so if someone wants to talk, I’ll talk to them.”
What is stopping the NHL from entering expansion mode again? It appears none of the potential suitors have checked all of the boxes required to successfully complete the application, whether it’s market size (Quebec City), arena (not yet built in suburban Atlanta), or a truly hockey-suitable building (Salt Lake City).
“If someone came in and said, ‘OK we have a building, its own market, this is the ownership group, and we’d really like to go,’ then we would take a look and decide whether or not we were inclined to expand or not,” Bettman said.
And then there is Houston, which would seem to be a ready-made landing spot for the Arizona Coyotes – should owner Alex Meruelo be unable to secure an arena in the Phoenix area – though Bettman said Wednesday that the Coyotes’ time on the clock is unrelated to future expansion.
“I think they are incomparable to each other,” Bettman said. “They are on different tracks. We remain optimistic that Alex Meruelo will be able to get a building going in the not-so-distant future. I know he’s trying hard, so we will see where things are come February.”
If the right situation were to truly present itself, whether it’s deep-pocketed hockey fan Ryan Smith in Salt Lake or a third go-round in Atlanta, it might be difficult for the NHL to say no. After Vegas plunked down $500 million (all figures USD) in 2017 and Seattle stroked a check for $650 million in 2020, the next NHL expansion fee figures to start with a ‘b’ as in billion.
“A lot,” Bettman said, musing about a potential expansion fee. “Our franchises have been historically undervalued, but if you look at what’s been going on regarding franchise values, they’ve been increasing.”
Bettman mentioned the recent sale of the Ottawa Senators for a reported $950 million, a team that had recently viewed as one of the least valuable, and the impending transition of power in Nashville in 2025 from Herb Fritch to former Tennessee governor Bill Haslam for a reported $880 million as evidence ahead of a potential ask.
“Paying a number approaching a billion dollars sets a floor for our franchises,” Bettman said.
At that rate, it becomes a game of ‘Who says no?’ and there doesn’t appear to be a constituency that would stand in the way. More teams equal more revenue, 30 to 60 new highly paid jobs for the NHL Players’ Association, expanded reach into new markets, more homes for television and content partners and, oh yes, a check for $30-plus million for each owner who is already a member of the club. It seems to be only a matter of time until the right owner in the right market with the right arena emerges, because the NHL certainly isn’t rejecting the notion.
Beefing up the Sens
Michael Andlauer is no stranger to the NHL’s Board of Governors, with a seat at the table for the last 14 years as a minority partner of the Montreal Canadiens, but Wednesday marked his first meeting as the majority owner of the Ottawa Senators since his purchase closed last month.
Andlauer recently installed former Edmonton Oilers executive Steve Staios as president of hockey operations. In that press release, Andlauer said: “In hockey you can never accumulate too much talent.” While Staios is in evaluation mode, with all eyes on the team’s start under GM Pierre Dorion and coach D.J. Smith, does that mean Andlauer may be looking to make additions to the hockey operations department?
“Steve comes in as a new position. He has a good feel with his experience to look at all aspects. I’ve had a bit of experience in it, seeing in Montreal, seeing it in (OHL) Hamilton, and to me, it’s about creating an environment that’s best in class and also giving all the tools for the players to be the best they can be,” Andlauer said. “I see some gaps as opportunities. But Steve understands my way of thinking, we’ve worked together for many years and he’s already deep in it already. He’s in Ottawa right now.”
Andlauer said he has already engaged in discussions with National Capital Commission executives and related constituencies on a new arena in downtown Ottawa, but acknowledged it will take time.
“If I could do it tomorrow, we’d do it tomorrow,” Andlauer said. “I reckon we will be there [at Canadian Tire Centre] for the next five years. If we can do it in four years, great. So in the meantime, we will probably look at refreshing [Canadian Tire Centre]. Everything I do is for the fans. We’ll go from there.”
International calendar on hold
The NHL and NHL Players’ Association do not appear to be any closer on finalizing an international competition calendar. With 2024 around the corner, that means a potential World Cup of Hockey in 2025 is already on the clock, not to mention the 2026 Winter Olympics in Milan, Italy.
“I think you know the world complexity is still an issue,” Bettman said, referring to hockey power Russia’s unprovoked attack on Ukraine. “But we are focused on wanting to do something for 2025, and hopefully, we will, and we are still working with the PA, the IIHF and the IOC for the Olympics. We know the players want to go, but the IIHF and the IOC have to make that work.”
Board Bytes
Bettman said on Wednesday the “very, very preliminary” salary cap projection for the 2024-25 season is between $87 and $88 million. Part of that is a function of the NHL-NHLPA MOU, which calls for a prescribed 5 percent increase once the escrow debt from players to owners is paid off. The cap figure, of course, is always subject to negotiation … Bettman said the remaining escrow debt is approximately $50 million and will be paid off this season in full … The NHL’s revenue projection for this upcoming season is “around $6 or $7 billion,” in mixed dollars, depending on the strength of the Canadian dollar … Bettman offered no comment on the lingering investigation into the sexual assault that occurred at a Hockey Canada party celebrating the 2018 World Junior Championship team: “The process continues. When I have something to say, I’ll say it” … The NHL appears to be close to announcing Las Vegas as host of the 2024 Draft and Awards … The NHL has little appetite to entertain an expanded playoff format … Bettman said the NHL has no issue with the current preseason format, with teams playing as many as eight exhibition games, but added that if the NHLPA raises it at the next CBA negotiation that “we will discuss it” … The next Board of Governors meeting will be held in Seattle in December.
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