NHL Commissioner Gary Bettman announced Tuesday that the league entered a six-month process with the Friedkin family to place its 33rd team in Houston or Austin for a $3.5 billion investment.
Six-Month Process Begins With Record Investment
The Board of Governors executive committee endorsed a term sheet with the Friedkin family led by Dan Friedkin on June 23, 2026.
Bettman stated the total investment covers both the expansion fee paid to existing owners and the cost of a new arena in either market.
Previous expansion fees reached $500 million for Vegas and $650 million for Seattle five years earlier.
The $3.5 billion figure exceeds those totals by more than five times and will be divided among the 32 current owners.
Houston already supports NBA, NFL and MLB teams while Austin offers a rapidly growing population base adjacent to Dallas.
Regional Rivalry With Dallas Stars Takes Shape
The new franchise will sit roughly 200 miles from the Dallas Stars who have played in Texas since 1993.
Bettman noted the arrangement preserves territorial rights for Dallas while creating an in-state matchup similar to the three teams clustered around New York and California.
Discussions focused on Houston for two years before Austin entered consideration in the final months.
A second Texas team would extend the NHL footprint in the South without overlapping existing markets.
The league currently fields 25 U.S. teams and seven Canadian clubs.
Path Opens For Immediate Follow-On Expansion
Bettman confirmed the process will conclude by late 2026 with a decision on either Houston or Austin.
The writer of the primary source argued owners will seek a 34th team soon afterward to avoid competitive imbalance at 33 clubs.
Markets such as Phoenix, Atlanta and Kansas City already appear on internal short lists according to the same analysis.
Quebec City remains unlikely because ownership groups and arena commitments favor U.S. Sun Belt locations.
The NHL Players Association receives none of the expansion fees, giving owners full incentive to accelerate growth.
The NHL will award its 33rd franchise before December 2026, clearing the path for a 34th expansion team by 2028.
Frequently Asked Questions
Sources
Par Mike Jonderson
Mike Jonderson is a passionate hockey analyst and expert in advanced NHL statistics. A former college player and mathematics graduate, he combines his understanding of the game with technical expertise to develop innovative predictive models and contribute to the evolution of modern hockey analytics.