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You can expand at any time during the offseason, I think. If you go to Game Setup, in the long list of functions one is to Expand League (or something similar, don't have the game open). If you want, you can hold an expansion draft; each team can protect a certain number of players, and then the expansion teams can draft from the remaining unprotected players. It's normally best to expand after free agents file; otherwise you'll have a lot of upcoming free agents in the expansion draft pool, and it's easy to draft these guys without noticing that they'll become free agents a week later.
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