The NHL has officially set a minimum expansion fee of $2 billion, plus $500 million to $600 million for new arena construction, according to New York Islanders owner Jonathan Ledecky. The announcement at the Front Office Sports Asset Class summit marks a dramatic increase from the Seattle Kraken\'s $650 million entry fee in 2021.
The new fee represents a more than threefold increase from Seattle\'s expansion cost just four years ago. NHL Commissioner Gary Bettman confirmed the pricing structure to team owners at a recent Board of Governors meeting, according to Ledecky\'s disclosure.
Ledecky provided historical context for the dramatic valuation jump, noting his $200 million purchase of the Washington Capitals in 1999, with just $85 million designated for the hockey franchise alone. He subsequently sold his Washington interests and purchased the Islanders in 2014, gaining majority control in 2016.
\"Think about that versus 1999, when Ted Leonsis and I bought the Washington Capitals and half of the Wizards for $200 million,\" Ledecky said at the summit. \"So in the course of just one generation, sports franchise prices have increased because the leagues that get it and understand the need to have this labor situation taken care of can really move forward aggressively together.\"
The NHL has not committed to a formal expansion process and instead will review expansion bids individually, Bettman said Wednesday following a Board of Governors meeting. He indicated that even preliminary discussions are not imminent.
\"If somebody knocks on the door, we\'ll peek around to see who\'s knocking and then decide what to do with it,\" Bettman said.
The NHL is operating at historic financial strength, with unprecedented revenues and labor peace guaranteed through September 2030. Atlanta and Houston remain the most frequently mentioned candidate cities for potential expansion.