NHL May See Relocation of Coyotes to Houston as Last Option

Blain Potvin Oct 8, 2023

 

After two decades of drama in Phoenix with the Coyotes and its inability to find a sustainable and profitable home, they are now on the brink. The team is now playing out of a 5,000-seat arena on the campus of Arizona State University, that they share with the school. They had hoped a new arena in Tempe, AZ would finally allow the franchise to settle down after playing in three different venues since moving to Arizona in 1996.  

 

Unfortunately, the voters in that area voted down the referendum to allow the area to be developed. Voters in the Phoenix suburb voted against three propositions to build a $2.3 billion entertainment district, paid mostly through private funding, which would include a new arena for the Coyotes. 

 

“The National Hockey League is terribly disappointed by the results of the public referendum regarding the Coyotes’ arena project in Tempe,” NHL Commissioner Gary Bettman said in a statement. “We are going to review with the Coyotes what the options might be going forward.” 

 

This leaves the NHL in a problematic situation. They are currently supporting a franchise via profit sharing, a franchise that has not been able to make a profit in a long time. It drags down Hockey Related Revenue (HRR) which in turn, keeps the cap low. While the owners love that, the players may not. There is a whole can of worms to be opened there. However, there may be a solution. Houston, Texas. 

 

“Houston should be very bullish on getting a team at some point,” – ESPN NHL commentator John Buccigross 

 

The NBA’s Houston Rockets have begun a $30 million renovation to their arena in downtown Houston. Phase One is upgrades to the sound systems, scoreboards, video screens, LEDs, and all the audio and visual equipment to enhance the fan experience. Phase two will be upgrades to the seating and flooring. Why is that something NHL fans should be aware of? Well, the renovation that is underway at the Toyota Center will include the installation of ice-making equipment that will ensure the building can ultimately be NHL-ready upon completion. 

 

 

The addition of ice-making equipment is the only change needed for hockey. The arena seating, about 18000 for hockey, and the favourable downtown location are seen as the NHL standards. No further construction would be necessary, allowing for a team to be easily relocated.  

 

Why Houston? They do have a history with hockey. The WHA Houston Aeros were a smash hit, especially when the Howe’s arrived. Gordie and his sons Mark and Marty brought back-to-back Avro Cup titles to the city. The team returned as an IHL, then AHL team, acting as a minor league feeder to the NHL before leaving in 2013. Even at a more grassroots level, the University of Houston has a hockey program which is currently a Division 2 NCAA program.

 

 

The most recent NHL team relocation saw Atlanta lose their second team in 31 years (Flames 1980, Thrashers 2011) and Winnipeg land their second club in 32 years (Jets 1979, Jets 2011). The cost to Winnipeg? The purchase of the team for $110 million and a relocation fee of $60 million. Based on the inflation of franchise values since 2011, and the recent $500 billion expansion fee to Las Vegas and $650 million to Seattle, it wouldn’t be unlikely to see an ownership group pay as much as $325 million to relocate. That is money that goes directly into the pockets of the 31 other owners and is not considered HRR. 

 

Houston is the fourth-largest city in the United States. The “Bayou City” is also known as the fourth-largest marketing area in that nation. However, “Space City” doesn’t have an NHL team. A franchise added to the city would provide a good landing spot for a struggling franchise but also provide an instant financial boost to the league as well as a regional rivalry with the Dallas Stars without the need to re-align the NHL. Time is running out for Phoenix and Houston is ready for hockey to return 

Blain Potvin

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