Archive: NHL Expansion Kicked Into Overdrive in 1990s

The NHL’s senior management recently spoke about the prospects of expanding the league. In this cover story from The Hockey News’ Nov. 24, 1989 edition (Vol. 43, Issue 10) writers Rand Simon and Bob McKenzie covered the prospect of the league growing beyond the 21 teams it had at that stage in history.

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The league voted in 1990 to expand to 28 teams within a decade, with San Jose being the 22nd team starting in 1991-92 and the Tampa Bay Lightning and Ottawa Senators joining the ranks a year later. But when the story was published, then-NHL president John Ziegler spoke openly about the expansion process, being cautious in his prediction as to exactly when expansion would begin.

“We know it will not be 1990,” said Ziegler. “I think 1991 is a question mark because we have very important collective bargaining negotiations (with the NHL Players’ Association). I would guess 1992 would probably be the earliest.”

As we’re seeing now with big-market cities jockeying for position as the league ponders whether to expand beyond its current 32-team setup, there was no shortage of suitors for expansion in the early '90s. McKenzie and Simon counted 30 interested cities, from Toronto bedroom-community town Port Hope, Ont., to Saskatoon, Sask., and San Francisco. There were fears at that time that major expansion would significantly dilute the talent product, but Ziegler answered that critique by pointing to the acceptance of once-unavailable talent and trotting out a line that many people would expect current NHL commissioner Gary Bettman to use if and when he does green-light more NHL expansion now.

“Each year it appears to me that there are more and more good players coming in,” Ziegler told THN at the time. “This year, for the first time, we have opened up a whole new talent pool—Soviet players. But I think for the immediate future, there is enough talent to handle expansion.”

Simon and McKenzie pegged the fee for an expansion franchise to be between $30 million to $50 million, a relative pittance in today’s NHL. Many expect the league to be seeking a $1-billion franchise fee for any new teams now, but back then, Simon and McKenzie noted the league judged expansion candidates on many things, including strong ownership, market size, TV appeal, competition from other sports, proximity to other NHL cities, and arena quality.

In 1989, that philosophy led them to San Jose, Ottawa and Tampa as their newest markets, but Ziegler warned against fans in expansion cities getting too attached to their rinks.

“Some buildings might already be obsolete,” Ziegler said. “You have to think in terms of a total entertainment picture, not just a place where hockey games are played.”

Vol. 43, No. 10, Nov. 24, 1989

By Rand Simon and Bob McKenzie

On the eve of the 1990s, the National Hockey League is ready to face its future.

And all signs point to expansion.

The NHL board of governors will convene Dec. 7-9 in Palm Beach, Fla., for its final meeting of the decade. The major item on the agenda is growth.

“I believe we will have (expansion),” NHL president John Ziegler said in late October. “The question(s) of who, where and how many, will come…after we make the decision (whether to expand).”

The NHL’s 10-member Market and Analysis Committee—co-chaired by Ziegler and chairman of the board Bill Wirtz—will meet Dec. 6. One day later, it will unveil its report and recommendations to the board.

The ultimate decision rests with the 21 governors. Sixteen votes are required for any expansion motion to pass. Given Ziegler’s public pronouncements — he’s never been one to talk out of turn — it’s clear the league will commit to growth for the first time in 10 years. Only the timing remains to be determined.

Ziegler described the December board meeting as “where they (governors) will say, ‘Yes or no, or let’s meet again.’”

Calgary general manager Cliff Fletcher said expecting a December vote on expansion may be premature. “I would hazard an intelligent guess that nothing will be voted on (in December),” Fletcher said. “That will wait until June (at the NHL congress in Vancouver).”

Jets’ governor Barry Shenkarow was quoted in the Winnipeg Free Press as saying the expansion committee — of which he is a member — would come out in favor of adding teams. He later backtracked, and said the report was not yet finished. He claimed his personal view of expansion was confused with the committee’s recommendation.

Hockey’s last expansion was in 1979, when four survivors of the World Hockey Association (Edmonton, Hartford, Quebec and Winnipeg) were absorbed to form the current 21-team loop. The National Basketball Association, which has added four new teams in the past two seasons, has been the only major North American sports league to expand during the 1980s.

The decision to expand, assuming it is made in December, will only intensify excitement in a number of North American cities. More than 30, from tiny Port Hope, Ont. (just east of Toronto) to the San Francisco Bay area, have expressed interest in obtaining an NHL franchise. Inquiries have also been made from the Soviet Union and Sweden, though there is no interest at this time in expanding beyond the continent.

Many cities have already established committees and full-time lobbyists to improve their chances of receiving franchises. They will undoubtedly converge on Palm Beach looking for answers to several pertinent questions, among them: When will the NHL expand? By how many teams? To what regions? At what cost? Where will the players come from? What criteria must be met?

These and other questions have all been considered in broad terms. Here are some of the preliminary answers:

■ There isn’t likely to be a new NHL franchise active until the 1992-93 season.

“We know it will not be 1990,” said Ziegler. “I think 1991 is a question mark because we have very important collective bargaining negotiations (with the Players’ Association). I would guess 1992 would probably be the earliest.”

■ The early-line consensus on the number of teams to be added is three, though it’s questionable whether all would enter the league in the same season. One could be added in each of three successive years or, perhaps, one every other year.

Ziegler envisions a 24-team league, with four six-team divisions. Others have different notions.

“At one end of the spectrum,” said Ziegler, “there are some people who would say that they’d like to look forward, over the next 10 years, to seven teams. We’d have four divisions of seven or something. There are some who are very conservative who say, ‘Let’s move very slowly and let’s only look at one team.’ Somewhere in between there, I think between one and three teams, is more realistic.”

■ The emphasis will be on adding franchises in the United States, specifically the west.

Another team in California, to reduce the Los Angeles Kings’ travel burden, is seen as essential. Kings’ owner Bruce McNall has said that’s his preference and it’s a view shared by many.

San Diego, San Jose, San Francisco, Oakland, Sacramento and Anaheim have all indicated interest. “Los Angeles stands out there pretty much all by itself,” said Ziegler, “and we need another anchor out there for it.”

U.S. expansion may be at the expense of Canadian growth. By expanding into a major California market, as well as the Pacific northwest (i.e. Seattle) and/or southern states (i.e. Texas, Florida or Georgia), hockey would become a more national sport in the U.S. — the foundation for a network television deal.

Canadian cities, such as Saskatoon, Hamilton and Ottawa, will be dismayed there is no strong movement afoot to maintain the 2-to-1 ratio of American versus Canadian teams. It’s not inconceivable all three teams would be American.

“The 2-to-1 ratio has not been discussed,” Shenkarow said. “My personal opinion is, I don’t think there’s any reason to have a set ratio. What’s equally important is to look at the geography of the league vis-a-vis teams in the west. Having traveled in the Smythe Division, it’s important to get more teams out west.”

■ The going rate for an expansion franchise is pegged at anywhere from $30 million to $50 million. Existing NHL teams are believed to want at least $1 million (U.S.) each — and quite likely more — for every club admitted.

■ The opening up of the Soviet Union is a factor in how expansion clubs will be staffed. So will an easing of restrictions on Czechoslovak players.

But, for the most part, expansion will mean opportunities for players buried in the minors. And, of course, there will be an expansion draft. In the NBA, each established club was permitted to protect eight players and couldn’t lose more than one in the expansion draft. The NHL might opt for a two-goalie, 12-14 skater protected list with maximum losses of two or three players per club.

“Each year it appears to me that there are more and more good players coming in,” Ziegler said. “This year, for the first time, we have opened up a whole new talent pool — Soviet players. But I think for the immediate future, there is enough talent to handle expansion.”

Washington GM David Poile is on the league’s Player Availability Committee, which was scheduled to meet in advance of the governors. Poile said the committee won’t get together now until after the December meeting.

“We’ll get some direction from those meetings,” he said. “Right now there’s nothing to comment on because no one knows anything.”

■ The league will judge expansion candidates on a wide variety of criteria, including: strong ownership potential; market size, especially as it pertains to television; hockey background and/or familiarity; competition from other sports; proximity to other NHL cities; and arena facilities.

It’s not so important to have an existing arena in place now as it is to be able to construct one with the key elements—large capacity (18,000 to 20,000); state-of-the-art broadcast facilities; a favorable lease or ownership arrangement to include parking and concessions; and lots of luxury boxes for corporate customers.

“Some buildings might already be obsolete…” Ziegler said. “You have to think in terms of a total entertainment picture, not just a place where hockey games are played.”

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