The NHL's deputy commissioner signaled that a second Texas franchise is no longer the foregone conclusion it appeared to be eighteen months ago, cooling speculation that had Dallas Stars ownership anxiously mapping territorial rights and arena operators in Houston pricing premium suites.
The statement marks a reversal from prior league messaging. Commissioner Gary Bettman spent 2023 calling Houston "expansion-ready" after $1.2 billion Atlanta franchise sale talks stalled. Deputy commissioner Bill Daly now indicates Texas expansion remains "under evaluation," citing unspecified market factors. No timeline was provided. The Stars, who hold territorial control over the state under current league bylaws, declined comment through a spokesperson.
The pause matters for three reasons. First, Dallas ownership was reportedly negotiating a territorial fee structure—industry observers pegged it between $150 million and $250 million—that would have funded a new practice facility and minor-league affiliate relocation. That capital is now in limbo. Second, Toyota Center in Houston has been in quiet talks with the league about facility upgrades, including $40 million in deferred maintenance the Rockets ownership would split with a hypothetical NHL tenant. Those conversations have slowed, according to two people familiar with the discussions. Third, the Stars' local broadcast partner has been banking on a Texas rivalry to justify a rumored nine-year, $900 million extension that would dwarf the current deal. Without a Houston team, that math changes.
The hesitation likely stems from unresolved questions about Houston's readiness. The city lacks a dedicated NHL practice facility and would need 18-24 months to build one, per construction timelines used in recent Seattle and Vegas expansions. Fertitta Entertainment, which owns the Rockets and Toyota Center, has not publicly committed to an anchor investment, and league sources suggest ownership group formation has stalled. Meanwhile, Atlanta ownership re-emerged last month with adjusted terms, pushing Houston further down the queue.
Watch for three inflection points. First, whether Fertitta files an expansion application by the league's informal June 2025 window, which would force the NHL to price the franchise publicly. Second, whether Dallas ownership begins renegotiating its territorial agreement, signaling they expect the fee to shrink or vanish. Third, whether the Stars' broadcast extension closes before or after the NHL's next Board of Governors meeting in December 2024, when expansion is expected to surface formally.
The Stars play a Thursday night game in Houston this season as part of a neutral-site series. Attendance there will be watched closely.