The history of the Houston Texans began before its first season in 2002, bringing the National Football League back to Houston, Texas after the city's previous franchise, the Houston Oilers, relocated to Nashville, Tennessee to eventually become the Tennessee Titans. In June 1997, Bob McNair and Chuck Watson were bypassed by the National Hockey League in an attempt to bring a team to Houston, in part because of a lack of a suitable NHL arena.
Two weeks later, Houston found itself without professional football for the first time since 1959 as Houston Oilers owner Bud Adams got the final approval to move his team to Tennessee. A lawsuit filed by the city of Houston, Harris County, and other parties was settled with Adams paying millions of dollars for leaving town. In an interview with the Houston Chronicle, local entrepreneur and San Diego Padres owner John J. Moores, whose name was often attached to efforts to return the NFL to Houston, said that the city's football fans would be in for a long, dry spell without football and that he did not foresee another league expansion in the next 10 years. While efforts to get an NHL team in Houston faltered, McNair made his decision to set his sights higher and founded Houston NFL Holdings. Steve Patterson, who had been working with McNair in an attempt to bring the NHL to Houston, was immediately named as head of the new organization.
Now committed to the task at hand, McNair and Houston got an immediate morale boost in October 1997, when the NFL Stadium Committee reported to Commissioner Paul Tagliabue on the current attractiveness of Cleveland, Los Angeles, and Houston. Cleveland had lost the Browns in 1995 and had been promised by Tagliabue that the next expansion team would play there, bringing the league total to 31 teams. A future expansion to 32 teams seemed both logical and destined to happen, and Tagliabue praised McNair's strong initial efforts. Two days later, Houston Livestock Show and Rodeo (HLS&R) officials announced they would push for a domed stadium as part of the bid to lure the NFL back to Houston.
In March 1998, McNair learned that the NFL officially awarded Cleveland its promised expansion franchise, making it the NFL's 31st team; NFL Commissioner Tagliabue said that the league would likely add a 32nd team in the next two years, with the three top candidates being Toronto (which would have been the NFL's first franchise outside the US, and the fifth largest market in North America), Los Angeles (North America's second largest media market, and the victim of two relocated franchises in the 1990s), and Houston (which was the fourth largest media market in North America and whose Oilers had been the most recent victim of franchise relocation).
Houston officials worried that Los Angeles would get the nod because of its media market size; in early May, those fears became reality as entertainment guru Michael Ovitz announced he would lead a largely privately financed $750 million project to build a stadium in Carson, California in hopes of landing the expansion team. However, both McNair and Ovitz stated that they needed to know the NFL's intentions regarding expansion by early 1999, lest they lose public support as a result of long delays while the league developed its plans.
In late October 1998, Tagliabue announced that the NFL owners would indeed expand the league to 32 teams, and would decide by April 1999 which city would be awarded the NFL expansion franchise. Meanwhile, Ovitz now had competition coming from his own market, as real estate developer Ed Roski announced a rival bid for a future Los Angeles team; his proposal centered around putting a 68,000-seat stadium inside the shell of the historic Los Angeles Coliseum.
The 2002 National Football League expansion draft is the most recent National Football League draft in which a new expansion team, named the Houston Texans, selected its first players. On October 6, 1999, in Atlanta, NFL owners had unanimously voted to award the 32nd NFL franchise and Super Bowl XXXVIII to the city of Houston, Texas. In order for the Texans to become competitive with existing teams, the league awarded them the first pick in the 2002 NFL Draft and gave them the opportunity to select current players from existing teams. That selection was provided by the expansion draft, held on February 18, 2002.
In this draft, held months before the regular draft, the existing franchises listed players from which the Texans could select to switch to the new team. This was the third expansion draft after the NFL had instituted the salary cap, which limited the total amount teams could spend on their roster of players. Teams placed many quality players on the list who had large contracts, as the Texans were required to assume the contracts of those players if selected. The list included 155 NFL players, 25 of whom were Pro Bowl players. The draft took place live and aired on ESPN. The Texans drafted a total of 19 players. They selected three players with a total salary-cap value of $14.9 million from the Jacksonville Jaguars, who were $23 million over the cap; three players with a total salary-cap value of $14.1 million from the New York Jets, who were $16 million over the cap; and two players with a total salary-cap value of $7.1 million from the Baltimore Ravens, who were $23 million over the cap.
Each NFL team listed five players that the Texans could select, and the Texans were required to claim either 30 players or $27.2 million in contracts (38% of the 2002 salary cap). After the Texans selected a player from an existing team, that team could remove a player from their remaining list. If a second player was taken, the existing team could then pull back its remaining three players. However, teams were not required to remove players from the draftable list, resulting in three Jets and three Jaguars being drafted to the Texans. The Texans were prohibited from selecting a player from a team and trading the player back to that club.
The Texans launched their inaugural campaign in 2002 with the expansion draft. Teams welcomed the expansion draft as a way to eliminate expensive veteran players from their salary caps, because the Texans assumed the contracts of the players they selected, including all future portions of their signing bonuses and any guarantees or other terms. Notable players that teams exposed to the draft included five-time Pro Bowler Tony Boselli, Randall McDaniel, and Willie Roaf. The Jets left Aaron Glenn unprotected although it wanted to keep him, because the team hoped that the Texans would not want Glenn's $8 million salary-cap figure for 2002.
If the Texans cut a selection and he re-signed with his old team, the existing team re-assumed his signing bonus. Extra bonuses that did not count against the Texans' salary cap were given to veteran players who were selected. Those selected received $10,000 immediately, an additional $20,000 bonus for reporting to training camp, and another $30,000 for making the active roster during the regular season on August 5, 2002 against the New York Giants at Fawcett Stadium in the Pro Football Hall of Fame Game in Canton, Ohio, in front of 22,461 fans. The Texans' first season game was on September 8, 2002 against the Dallas Cowboys at Reliant Stadium. The two teams had also previously scrimmaged at the first home of Houston's previous team, the University of Houston's Robertson Stadium the month prior. Rookie David Carr hooked up with tight end Billy Miller on the third play from scrimmage for a touchdown (scoring the first points for the franchise). The Texans shocked their intrastate rivals 19–10, becoming just the second expansion team ever to win their first game (after the Minnesota Vikings in 1961). The Texans lost their next five games before winning for the first time on the road against the Jaguars, a team they would find success against in the seasons to come. In the 2002 NFL Draft the Texans had the first pick and selected Quarterback David Carr.
Victories over the New York Giants in Houston and the Steelers in Pittsburgh (despite just 46 total yards of offense – an NFL low for a winning team) and the Texans finished the season 4–12, sending two players (Gary Walker and Aaron Glenn) to the Pro Bowl, the most ever by an expansion team. The season was deemed a success despite David Carr being sacked an NFL record 76 times and the realization that Tony Boselli, the man they had hoped would protect their young quarterback, would never play a down of football for the team.