On July 21, 2021, the Seattle Kraken, the newest franchise in
the National Hockey League (NHL), stocked its roster through what
is known as an expansion draft. The consensus seems to be
that the Kraken used the draft to select a solid, if not star,
roster whilst leaving flexibility to sign higher profile free
agents before the start of the season. All eyes will now be
on the Kraken's debut against the Golden Knights in Las Vegas
on October 12th.
In this article, we examine the background and rules to the
expansion draft, as well as well as the rationale for these rules
and their potential impact on the fortunes of new franchises.
Background to the NHL Expansion Draft
As values of professional sports franchises continue to increase
in North America, so do the franchise fees for new entrants.
For example, Seattle's franchise fee was $650 million compared
to $500 million for the Vegas Golden Knights who entered the league
in 2017. This franchise fee is split
