After re-evaluating I like the 20 team idea. Play each team in your division 8 times (32 games), other teams in the conference 6 times (30 games), other conference teams 2 times (20 games) for a 82 game season.
Taking more of the financials into account this is what my divisions would look like. The five new Canadien cities would be transfers of the 5 best existing U.S. franchise that won't make the cut. The contraction draft would occur in a similar fashion to the regular draft, all existing remaining contracts would remain so it would be up to teams to determine if a player is worth it at their existing contract.
Canada East
Toronto
Montreal
Ottawa
Quebec
Hamilton
Canada West
Vancouver
Calgary
Winnipeg
Edmonton
Victoria or Regina or Saskatoon
USA East
Boston
NY Rangers
Buffalo
Philladelphia
Pittsburgh
USA West
Detroit
Minneapolis
Dallas
Denver
Chicago