The NHL’s expansion fees have drastically increased since the Ottawa Senators joined the league in the early 1990s, when the franchise cost was around $50 million. Today, Auston Matthews is set to play for the next three and a half seasons amid talks of the league expanding to 34 teams within the next five years, with expansion fees predicted to soar to an incredible $2 billion, as reported by Sportico in late June.
To put this into perspective, this new fee is 40 times higher than what the Senators paid in 1992 and a staggering 1,000 times more than the 1967 expansion, which doubled the league from six to twelve teams. Back then, teams like the California Seals, Los Angeles Kings, Minnesota North Stars, Philadelphia Flyers, Pittsburgh Penguins, and St. Louis Blues joined for just $2 million each.
In 1970, fees rose slightly with the Buffalo Sabres and Vancouver Canucks each paying $6 million. The New York Islanders and Atlanta Flames joined in 1972-73 at the same $6 million fee, partly influenced by competition with the rival WHA league, with the Islanders paying an additional $5 million for operating in Rangers’ territory. Similar fees were maintained for further expansions in the mid-1970s as the NHL tread carefully due to ongoing WHA competition.
By 1979, the WHA threat had diminished, allowing four teams (Edmonton Oilers, Hartford Whalers, Quebec Nordiques, and Winnipeg Jets) to join for $7.5 million each. The 1991-92 season saw a sharp increase when the San Jose Sharks paid $45 million to enter the league, followed by Ottawa Senators and Tampa Bay Lightning at roughly $50 million a year later despite financial challenges for Ottawa’s owner Bruce Firestone.
Subsequent expansions included teams like Florida Panthers and Anaheim Ducks in the mid-1990s, Nashville Predators and Atlanta Thrashers in the late 1990s, and early 2000s teams Columbus Blue Jackets and Minnesota Wild. The league had a long hiatus but reemerged in 2016 with fees jumping to $500 million and Seattle’s recent entry in 2021-22 costing $650 million.
John Shannon predicts a likely return of an NHL team to Atlanta despite past failures of the Flames and Thrashers, with Houston and Phoenix also as potential candidates. However, many fans feel the league is already stretched thin managing 32 teams, a sentiment reflected across major North American sports leagues.
Reflecting on Ottawa’s entry in 1990, it’s interesting to consider if the franchise success was timed with Gary Bettman’s era starting in 1993 when eight teams joined within his tenure. With expansion fees now estimated between $650 million and $2 billion, it’s uncertain how many owners would commit to such a costly venture in Ottawa or elsewhere. Had Ottawa’s bid failed in 1990, a second chance might never have come.
— Steve Warne, Hockey News Ottawa
Fan Take: This historic leap in NHL expansion fees highlights how the league has grown in prestige and value, but also hints at challenges ahead with potential market saturation. For hockey fans, it’s a balancing act between embracing growth and preserving the quality and tradition of the sport.
