Assessing the NHL’s Sun Belt Phenomenon: Opportunities and Challenges Ahead

by May 30, 2025

NHL’s Southern Franchises: A Historical Overview

For several decades, the National Hockey League (NHL) has viewed its franchises located in the southern United States primarily as underdogs in a league dominated by traditional market teams. The saga began in the late 1960s when the NHL expanded into California, leading to the establishment of teams like the Los Angeles Kings and the Oakland Seals. Despite this growth, these franchises struggled, with only five winning seasons combined over their first thirty years until the pivotal arrival of Wayne Gretzky in L.A. in 1988, a move that significantly shifted the league’s dynamics. The Seals, however, eventually relocated to Cleveland after just nine seasons of play.

1990s Expansion and the Rise of Sun Belt Teams

In the 1990s, the NHL aggressively expanded, introducing franchises with unique names into various less conventional markets such as the San Jose Sharks, Tampa Bay Lightning, and Atlanta Thrashers. This rapid expansion resulted in a surge of warm-weather teams, with many sidelined in terms of performance—only the Dallas Stars managed to achieve a respectable record in that timeframe.

A landmark moment occurred in 1999 when the Dallas Stars became the first team from the Sun Belt to win the coveted Stanley Cup. Following another victory by the Tampa Bay Lightning in 2004, a league-wide lockout ensued, ultimately leading to the implementation of a strict salary cap and revenue-sharing initiatives that provided greater opportunities for success in these emerging markets. Over the years, Sun Belt teams have made their mark in the league, with nine out of the last twenty Stanley Cup champions hailing from these regions, including four of the most recent five champions. Current playoff contention showcases this trend, with Carolina, Dallas, and Florida competing at high levels this season, continuing a legacy where nearly 60% of conference finalists over the last decade are based in the Sun Belt, despite these teams only accounting for 28% of the entire league.

Concerns About the Dominance of Sun Belt Teams

However, the rapid ascent of Sun Belt franchises presents three major concerns. Firstly, viewership in the United States has seen a decline, particularly this postseason, with historic hockey powerhouses such as Boston, Chicago, and Pittsburgh absent from the playoffs. This lack of representation from major markets is troubling for television partners like ESPN and TNT, who rely on these traditional franchises to deliver strong ratings.

Secondly, playoff revenue generation is substantially higher for teams in established markets, which directly affects the overall financial health of the league and impacts player salaries and salary cap growth. Currently, Original Six teams generate approximately 35% more revenue compared to their Sun Belt counterparts, meaning that financial success is outweighed by a relatively lesser performance in the playoffs outside these core markets.

Lastly, discontent persists among fans in traditional hockey markets concerning perceived inequities stemming from favorable tax conditions in some Sun Belt states. This sentiment is particularly pronounced in Canada, where a champion has not emerged in over three decades. While some agents downplay the significance of tax advantages in player decision-making, it’s undeniable that factors like climate and lower taxes do attract players to southern markets—though historical performance from California-based teams suggests this narrative has been incomplete, as their success came during high-tax periods.

Future Perspectives on NHL’s Landscape

The question of whether the dominance of Sun Belt teams is a genuine concern for the league is a subject of varied perspectives. In the long run, this could be beneficial, as participation in hockey is booming across the U.S., and the national team is becoming increasingly competitive on the global stage. However, it will take time for this growth to reflect in national television ratings.

A factor that could influence future trends is the anticipated rise in the league’s salary cap. While the pandemic led to salary constraints that affected team expenditures, clubs in affluent markets are likely to capitalize on a larger cap in the coming years, potentially leveling the playing field for traditional franchises in roster development.

Sun Belt teams’ effectiveness can be attributed, in part, to innovative management strategies that are often lacking among more established franchises. Teams such as Tampa Bay and Vegas have embraced progressive thinking, leading to better draft success and the identification of overlooked talent. The impact of successful management is evident in the near-annual nomination of executives like Bill Zito and Jim Nill for the GM of the Year Award.

Conclusion: The NHL’s Future

The ongoing success of Sun Belt franchises poses a challenge to traditional teams, potentially motivating them to enhance their operations. While Original Six teams hold inherent advantages in attracting talent through their historical significance and location, the cyclical nature of sports means that current trends can shift.

In summary, the NHL’s future may hinge on the sustainable success of its Sun Belt franchises, especially as the league eyes expansion into new markets such as Houston, Atlanta, and Phoenix. Maintaining a robust southern franchise presence could be crucial for securing these lucrative expansion fees—ensuring both owners and their fans remain optimistic about their chances of success in the competitive landscape of professional hockey.