SALT LAKE CITY, Utah, April 17, 2024 (Gephardt Daily) — The Arizona Coyotes’ sale and relocation to Salt Lake City is expected to become official Thursday.
Arizona Sports’ John Gambadoro reported Wednesday that the NHL franchise’s sale to Utah Jazz owner Ryan Smith has been approved and will be formalized by a vote of the league’s Board of Governors on Thursday.
The $1.2 billon sale will allow the Coyotes to be rebranded and relocated to Salt Lake City in time for the 2024-25 season.
Arizona owner Alex Meruelo will receive $1 billion in the deal and the NHL will collect a $200 million relocation fee, which will be distributed to the league’s owners, according to multiple reports.
If Meruelo is awarded an expansion franchise in Arizona in the next five years, he would be required to pay back the $1 billion.
As part of the deal, Meruelo will retain the Coyotes’ name, logos and trademarks, as well as ownership of the team’s minor-league franchise, the American Hockey League’s Tucson Roadrunners.
Last week, Coyotes players and coaches were informed of plans to relocate to Salt Lake City. The pending move stems from the Coyotes’ failed attempts to build a new arena in the Phoenix area.
The Coyotes, who currently play in the 5,000-seat Mullett Arena at Arizona State, would begin play next season at the Delta Center, sharing the arena with the Jazz, under Smith’s proposal to the NHL.
The Coyotes are playing what appears to be their final game at Mullett Arena on Wednesday night. The team had been planning to play at the ASU arena again next season.
Smith, chairman of Smith Entertainment Group and governor of the Utah Jazz, made a formal request in January that the NHL begin the process of expanding into Utah.
Smith and his wife, Ashley, have been in discussions with NHL Commissioner Gary Bettman since early 2022 about why they believe Utah is an ideal market for an NHL franchise.
Smith ultimately plans to either renovate the Delta Center or build a new arena designed for both NBA and NHL games.
That effort found support earlier this year in the Utah Legislature, which passed legislation to create a “capital city revitalization zone” to support the renovation or new construction.
Ownership in Arizona did not have that political backing, ultimately ending the team’s 28-year stay in the Valley of the Sun.
The biggest blow to the franchise’s future in Arizona came in May 2023, when voters in Tempe rejected Meruelo’s proposal to purchase property, build a new arena and develop an entertainment district there.
In the most recent arena proposal, Meruelo earlier this month announced plans to purchase state land in northeast Phoenix scheduled to go up for bid on June 27.
The mayor of Scottsdale, which borders the northeast Phoenix property, publicly opposed the new development. Meruelo has said the auction was the Coyotes’ final attempt to keep the team in the Valley of the Sun.
