The NHL is taking its first concrete steps toward potentially adding a 33rd franchise, and the Lone Star State is squarely in the crosshairs.

Following a meeting of the Board of Governors on Tuesday, commissioner Gary Bettman confirmed that the league will undergo a six-month evaluation process to determine whether Texas can support a second NHL franchise, with Houston and Austin identified as the two candidates under consideration.

The league has presented the interested investment group with an expansion fee of $2 billion, and that is before the cost of a new arena is factored in. NHL insider Frank Seravalli, speaking on the Frankly Hockey podcast with John Buccigross on Wednesday, noted that modern arenas typically run in the range of $1.5 billion to build. 

The NHL is requiring a purpose-built facility to be in place before any franchise is awarded, a condition that seemingly stems in part from the complications the league experienced when relocating the Arizona Coyotes without a permanent arena secured ahead of the move.

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The family behind the bid is the Friedkins Family, a Texas-rooted dynasty whose wealth was built primarily through Gulf States Toyota, an exclusive distributor for Toyota vehicles across five southern states founded by Thomas H. Friedkin in 1969.

The family also owns Italian soccer club AS Roma and English Premier League side Everton, giving them significant experience operating major professional sports franchises. 

In a statement, the Friedkins confirmed that their agreement with the NHL grants them exclusive rights to pursue an expansion franchise in Texas, with both Austin and Houston under active consideration.

Bettman acknowledged the discussions have been ongoing for at least two years, with the conversation first starting around considering Houston for an NHL team, following by Bettman confirming the arena will be a need for a deal to get done for either city with the conversation then including Austin as a location possibility. 

While both cities remain officially in play, Seravalli made clear where he thinks the league is leaning. "I don't know exactly which way this is going to go, but I can only tell you from being around the NHL for a very long time that I would place a bet on Austin as opposed to Houston," he said, pointing to the league's track record of planting flags in emerging markets before they fully arrive. Vegas and Nashville were cited as prime examples of the NHL's appetite for being first in a growing city rather than second in an established one.

Austin's rapid rise as a technology and cultural hub adds weight to that argument. The city has attracted major corporations including Google, Apple, Tesla and Oracle, earning it the nickname "Silicon Hills" and bringing a wave of new residents and disposable income to the region. 

Seravalli also pointed to the presence of the University of Texas as another factor that gives Austin an energetic, younger demographic that tends to embrace new sports franchises. Houston, while a larger city overall, is more geographically spread out but does have more hockey history through the Houston Aeros and past AHL franchises.

A Texas expansion would also create a natural in-state rivalry with the Dallas Stars, adding another layer of appeal for a league that has built some of its most passionate fanbases in non-traditional markets over the past two decades.

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