That's not necessarily true. New, large markets can always be utilized. Good products and good marketing can create demand.
Hockey as worked out pretty well in California, right?
Would you like me to list all the pro hockey teams that have setup in California over the past 50 years?
Look at Tim Hortons as an example. HUGE demand in Canada...a ridiculous amount setup in all areas including ridiculously small towns. They setup in pretty large US markets...and fail. CEO was recently turfed because growth wasn't good enough. THAT is what trying to grow demand for your product gets you.
This is a sports league...you go where people want it. Fine....if the demand isn't quite enough....you can setup there and hope it grows. But, you don't go where there is ZERO....absolutely NO...demand for your product and hope that some clown will pay $40M in payroll to try to create demand.
I'm not sure what the NHL told these people in Miami, Nashville, Atlanta, Phoenix, etc. but it must have been a tremendous sales pitch. Most planned on the hockey team doing reasonably well and that would help their side investments which would make them money overall. TNSE has a similar approach.
My view is that the NHL is responsible for creating demand for their product....not the Owners of expansion/relocation teams.
It's like Krusty putting a Krusty Burger franchise on an oil rig. Took a bath on it. Why? Because there was no demand and the franchise couldn't generate the needed demand. It was a bad idea.
Bad analogy? Probably. Either way.....if these are truly FRANCHISES...the company shouldn't be plopping franchises in places that doesn't prove there is demand. In fact, that is a requirement in the NHL by-laws....they overlook it for markets they desire (Phoenix, Atlanta, Nashville, Columbus, Miami, etc.) and then insist on it for markets like Winnipeg. You don't find that a little odd?
There are other ways to drum up demand for the NHL than putting an NHL team in the market.