Bob McNair offered the NFL owners $700 million for an expansion franchise. The owners voted unanimously to accept.
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They have always been the Houston Texans. There were teams in Houston prior to the Texans, in the NFL (and AFL) the Houston Oiler (now the Tenneessee Titans). And in the USFL the Houston Gamblers.
Their first pick was expansion draft in which they chose Tony Boselli, their very first NFL regular draft pick was David Carr.
The Houston Texans were established in 2001 and played their first season that same year. (Although the season ended in 2012). They were created as an expansion team after the Houston Oilers moved to Tennessee and became the Titans Sports Media 101 sportsmedia101.com
The original 1952 Dallas Texans franchise of the NFL was dissolved by the League before the end of the season. What was left of the players joined the new Baltimore Colts franchise in 1953. The 1960 Dallas Texans of the AFL relocated to become the Kansas City Chiefs in 1963.
No one ... there were 31 NFL teams when the Houston Texans joined in 2002. The 31st team, the Cleveland Browns, joined in 1999 and were placed in the AFC making 16 teams in the AFC and 15 in the NFC. When the Texans joined in 2002, they were placed in the AFC and the Seatte Seahawks moved to the NFC to even the conferences out at 16 teams each.