NHL Board Approves Sale of Coyotes' Hockey Assets to New Franchise in Utah: How an Arizona Franchise Could Return

The NHL board of governors approved the Coyotes to transfer all their hockey assets to a new franchise in Utah, but they could reactivate within five years.

The Arizona Coyotes will soon be inactive, but it might not be the end of them.

The NHL board of governors approved the relocation of the Arizona Coyotes' hockey assets to a new franchise in Utah, the league announced Thursday. However, the terminology the league used is different than a relocation.

The board approved the establishment of a new franchise beginning next season in Utah that will be owned and controlled by Smith Entertainment Group (SEG), led by Ryan and Ashley Smith.

Once the transaction closes, the Coyotes franchise, owned by Alex Meruelo, will transfer all of its hockey assets to the Utah franchise, which includes its full reserve list, roster of players, draft picks and hockey operations department.

At that point, the Coyotes will be rendered inactive. But the board approved a plan that gives Meruelo and the Coyotes the right to reactivate the franchise if they have fully constructed a "new, state-of-the-art facility appropriate for an NHL team within five years."

"I agree with commissioner Gary Bettman and the National Hockey League, that it is simply unfair to continue to have our players, coaches, hockey front office and the NHL teams they compete against, spend several more years playing in an arena that is not suited for NHL hockey," Meruelo said in a statement. “But this is not the end for NHL hockey in Arizona. 

"I remain committed to this community and to building a first-class sports arena and entertainment district without seeking financial support from the public."

Bettman added the NHL's belief in Arizona hockey has never wavered and said the league fully supports Meruelo's efforts to secure a new home for the Coyotes.

"We also want to acknowledge the loyal hockey fans of Arizona, who have supported their team with dedication for nearly three decades while growing the game."

The Coyotes had been the subject of relocation rumors for multiple years. Attendance issues surrounded for the franchise for some time. However, after leaving Gila River Arena in 2022, the team lost a referendum last year that would have allowed Meruelo to build a new arena in Tempe. A land auction scheduled for June 27 could allow Meruelo to build a new home for the Coyotes in Phoenix, but it would likely have meant the team remained in 4,600-seat Mullett Arena for multiple more years.

While Mullett Arena gave fans some fun memories, Meruelo and the league no longer wanted games in an arena that wasn't up to NHL standards for the long term while the search and wait for a new arena continued.

Bettman and Meruelo are scheduled to have a press conference on Friday at 2:30 p.m. ET in Phoenix. Bettman will then head to the Delta Center in Utah for a press conference with Ryan and Ashley Smith at 7 p.m. ET.

Now that Utah is officially getting a hockey team, SEG will take its time picking the club's name, logos, and colors, according to TSN/The Athletic's Pierre LeBrun. The club will use the Utah moniker rather than Salt Lake City, however. 

While this is tough news for Meruelo and Arizona fans, the Coyotes still have the potential to return to the NHL later down the road. Meruelo must work diligently to land an NHL-appropriate barn within the next five years. It will be intriguing to see if he can do just that. 

With more, here's Jacob Stoller discussing the news and where the Utah team will play: