What happened: The NHL has reached a term sheet with billionaire Dan Friedkin and his family for exclusive rights to explore a franchise in South Texas, focused on Houston or Austin, Commissioner Gary Bettman announced Tuesday. The Board of Governors executive committee endorsed the agreement, which gives the sides roughly six months to assess each market. Bettman pegged the combined expansion fee and new-arena cost at about $3.5 billion, with no board vote yet taken.

Why it matters: A 33rd team would make the NHL the largest of North America's major pro leagues, surpassing the NFL, and extend the league's aggressive Sun Belt push. Friedkin, chairman and CEO of the Friedkin Group with a Forbes-estimated net worth of $6.4 billion, already holds stakes in European soccer clubs Everton and Roma, signaling deep-pocketed ownership. Bettman framed Houston and Austin as further along than rival bids in Atlanta and Arizona.

What to watch: The Friedkin group says it will be methodical in choosing between Houston and Austin, with both cities requiring a new arena. A formal board vote would only follow if the sides advance the agreement over the coming months.