Official bids to own an NHL expansion franchise (assuming the NHL actually expands) were due yesterday, and of the several motley candidates, only two ended up submitting an actual bid, along with a $2 million non-refundable deposit: The Bill Foley/Maloof brothers group in Las Vegas, and Canadian telecom company Quebecor in Quebec City.
If the neo-Quebec Nordiques and Las Vegas Black Knights (that’s seriously what they’re considering calling the team — one can only hope their team motto will be “Tis but a flesh wound!“) happen, it will be because the NHL thinks it can get $500 million apiece in expansion fees, which would be worth the roughly $20 million a year in TV revenues the other teams would have to give up to each of the new franchises. Neither city would be a guaranteed success — Quebec probably has a better shot, if only because people actually watch hockey there, but they’d both be among the NHL’s smallest markets — but then, if there were an obvious expansion market, it would already have a team by now.
There was one bigger market considering a bid, or actually two bids: Seattle, where both Chris Hansen and Ray Bartoszek were reportedly interested in teams for their prospective arenas in downtown Seattle and suburban Tukwila. Neither ended up bidding, though, which would leave Seattle looking at being the home for a relocated team at some point, assuming either Hansen or Bartoszek is really that interested in the NHL.
And that, ultimately, is what the NHL would be giving up here, even more than a sliver of TV revenues: leverage. Right now, cities undergoing arena battles face a slew of marginally believable bogeymen where their team could be said to be relocating to if they don’t agree to demands. If Vegas and Quebec get new teams, the league would pretty much be down to Seattle as a threat, and while one city will certainly suffice for this (look at what the NFL has done with L.A.), it’s less than ideal.
All of which is to say that Glendale officials should probably feel comfortable taking a hard line with the Arizona Coyotes owners in their lease battle. There’s reportedly been some progress in those talks, but if the worst-case scenario ends up being that the Coyotes might move back to a new arena in Phoenix, leaving that city stuck with how to keep afloat a money-losing franchise with subsidies, that’s the kind of chance that Glendale should feel comfortable taking.
UPDATE: Deadspin thinks that this is going to hurt the NHL’s leverage in getting the highest price for expansion teams, since now they can’t get a bidding war going. I’m less sure — the league can still refuse to assign any new teams at all if it doesn’t get what it wants — but this certainly doesn’t help the NHL’s racket, let’s put it that way.