There’s talk ramping up about the next round of NHL expansion. It seems inevitable that the league will be gradually moving towards 36 teams.
So, one of the most pertinent questions is: Where will the next round of expansion happen?
It’s almost a given that there will be one team based in Texas and the other potentially in Atlanta. Player agent Allan Walsh seemingly confirmed this bit of information earlier this week.
NHL expansion is coming. Houston and Atlanta. https://t.co/IgKcYEaJxp
— Allan Walsh🏒 (@walsha) August 7, 2026
So, Houston and Atlanta. Those two markets would necessarily affect the Islanders, right? Well, at face value, not really. The Houston franchise would likely play in the Western Conference, while Atlanta would be in the East, but more assuredly joining the Atlantic Division.
But there are several second-order effects that will drastically impact the Islanders. And that’s why fans need to pay close attention.
NHL expansion will impact economics of the game
The first consideration to keep in mind is economics. Two new teams would mean 50 extra NHL jobs, which means additional competition for talent. That situation means the Law of Supply and Demand will begin driving up the price of the best NHL players.
All right, so we’ll see a jump in the value of the best players in the league. Yes, that’s true. The ceiling will rise. But the floor will also rise. More jobs will mean more players entering the league. And soon enough, the pressure to raise the cap floor and the minimum salary will also increase.
That’s why you don’t hear players complaining about expansion. Guys that wouldn’t necessarily get a job because they’ve aged out will have more opportunities. Prospects that wouldn’t have made teams now could find an opportunity.
Talent will be watered down around the league
The tail end of the previous points links to this next one. There is a legitimate concern about talent becoming watered down around the league. On the surface, that’s true. But that’s also why the league brings in one team at a time.
That was the mistake the NHL made in the 90s and early 2000s, by bringing in two or three teams in a span of five years.
Yes, some guys who aren’t NHLers now will get a chance to play as more teams enter the league. Some of the older guys will be able to hang around a bit longer. That also means that teams like the Islanders will need to have a clear direction and lock up young talent now. The last thing the Isles want to see is up-and-coming prospects getting ready to hit the market right when the new teams enter the league.
Imagine Matthew Schaefer becoming a UFA right when a new team enters the league with seemingly unlimited cap space?
That’s the sort of thing teams will need to guard against.
Islanders will face one more playoff competitor
Lastly, the Islanders will face another playoff competitor. The addition of one more team in the East, well, two more eventually, will mean more pressure to make the postseason. That won’t matter if the Islanders grab one of the top three spots in the Metro Division.
But if the Islanders should drop into a wild card spot, having one or two extra teams chasing that spot will make competition even harder.
The good news, if you can call it that, is that the NHL’s newest teams won’t be joining the league until the 2030s. But time flies, and the next thing you know, we’ll be talking about an expansion draft.
