SabreFan1

Canadian TV eyeballs are actually more valuable considering the Rogers deal is worth more than any deal they will get in US.

The US does present a larger market that presents more potential than the Canadian market ever will. The reason why there are only seven teams is because there aren't as many big cities in Canada as in the US. We could probably support another team in Montreal and one more in Toronto, but the Habs and Leafs would never let that happen. Heck you could have 3 teams in the GTA area and they would still do better than the Devils/Isles are doing in the New York market.

Don't forget the regional advertising dollars in the US.  That's what can really rake in the dough for teams.  That goes directly to population numbers.  For instance all 3 NY state teams are on MSG Networks so in between the over 8 million pairs of eyes in NYC you also have the sets of eyes in the western part of the state with the Sabres.  So with just 3 teams, that has the potential to reach and advertise to almost 1/3 of the population of all of Canada.

Having more teams in Montreal and Toronto wouldn't bring much more money to the league as a whole and like you said, it would cut the profitability of the Leafs and the Canadiens.

Canada could support plenty of teams no doubt if the league wasn't extremely profit driven.  I've never been anywhere near Halifax so I'm just guessing, but with a population over 400k even they could support a team I would think.  Or are they weirdo Canadians who don't love the game?