NHL Executive Shuts Down Expansion Rumors

After rumors of league expansion picked up speed over the last few months, one NHL executive is cautioning every one to cool their jets. Current deputy commissioner Bill Daly, who has been at the forefront of these conversations and the possibility of adding more franchises, recently made it clear that the league has no immediate plans to expand for the third time since 2016.

James Murphy of RG reached out to Daly about the ongoing conversations. In an email response, Daly stated emphatically that further expansion is not something they are “pursuing.”

”Expansion is not an initiative we are pursuing,” Daly stated in an email. ”Rather, it’s a possibility we are open to bringing to the Board for its consideration.”

A Bit of a Twist

The latest update from Daly is a bit of a reversal from the way things were progressing. Just a few months ago, it was Daly who confirmed an ESPN report that the team was having conversations with officials from cities in Atlanta and Houston about the possibility of another NHL franchise. He even added comments that the NHL wants to go to their Board of Directors with a fully-fledged plan when they want to officially pursue a 33rd and possibly 34th franchise.

Now, Daly and the league are seemingly backing off of that plan. Or, at least for the interim, that roaring fire has been calmed as the two sides move into a new CBA and into even more revenue. He joins commissioner Gary Bettman, who also has casted some doubt on further expansion in the coming few years.

The Heart of the Debate - Hockey Related Revenue

Did you know that the expansion fees for the Vegas Golden Knights and Seattle Kraken combined for over $1 billion? Those fees were split amongst the ownership groups around the NHL.

Did you also know that the players are not entitled to any of that money? As per the current Collective Bargaining Agreement, that money is not defined as Hockey Related Revenue (HRR), which the players are entitled to.

That can’t change until the newest CBA, which goes into effect in September of 2026, expires in 2030.

That’s why some believe the NHL owners want to add another franchise or more before 2030. It would be a lucrative financial endeavor to add another team, as the other franchises would benefit from the large expansion fee they would receive. Once that year is surpassed, however, the NHL owners and the NHLPA will likely close that loophole and add any expansion fees into the definition of HRR. So if an expansion happens after the year 2030, the owners and players will both see revenue from those fees.