Houston's high bid nets NFL's 32nd franchise

ATLANTA -- Houston won the right to NFL's 32nd franchise today, beating out Los Angeles, the second-largest TV market in the nation.

Bob McNair is paying $700 million for the expansion franchise, the highest price ever for a sports team in the United States.

NFL commissioner Paul Tagliabue announced the decision after owners met for about 90 minutes. The vote was not disclosed but 24 votes were needed for approval.

The vote returns an NFL team to Houston, which lost the Oilers to Tennessee after the 1996 season,

Owners also voted to readjust the league alignment to eight divisions of four teams each. Right now, there are six divisions -- one with six teams and the rest with five.

With a $310 million stadium included, the Houston deal would be worth more than $1 billion -- a first for the NFL.

Houston's plan is for a retractable-roof stadium, with $195 million of public funds going into the project.

"We've made an outstanding business proposal, and these are good business people who know a good proposal," McNair said. "From what I know about the other proposals, I don't think they compare to ours.I think the main issue is that Houston's ready to go."

The league's expansion committee met with McNair on Tuesday evening and also heard Michael Ovitz make another pitch for giving Los Angeles the 32nd team.

Los Angeles lost the Raiders to Oakland and the Rams to St. Louis after the 1994 season.

McNair's $700 million franchise bid is some $50 million higher than the new franchise was expected to be worth. Ovitz, who most recently proposed building a stadium at Hollywood Park in Inglewood, Calif., and another group seeking a team for the Los Angeles Coliseum apparently did not make an offer anywhere close to the one Houston put on the table.