The unique arrangement is a hybrid between relocation and expansionGetty Images
The NHL Board of Governors today approved a multifaceted arrangement that will see the players, draft picks and hockey operations of the Arizona Coyotes transferred to a newly established franchise in Utah purchased by Jazz owner Ryan Smith and his wife, Ashley, for the 2024-25 season. It also renders the Coyotes franchise owned by Alex Meruelo inactive and grants Meruelo an option to reactivate the franchise if he can facilitate the construction of an NHL-caliber arena in the Phoenix metro area within five years.
The unique arrangement is a hybrid between relocation and expansion. Technically, the league awarded Smith Entertainment Group a new franchise, and SEG has also purchased the Coyotes’ players, draft picks and hockey operations staff directly from Meruelo. Sources said the whole package cost SEG between $1.2-1.3B. The team will debut at Delta Center, the Jazz’s current home arena in downtown Salt Lake City, in October.
Meruelo, who received $1B in the deal, will retain the club’s IP and brand. If Meruelo meets certain conditions — most importantly, building the suitable new arena — the NHL would allow him to reactivate the Coyotes for an undisclosed fee.
The NHL’s capability to broker the complex deal with Smith and Meruelo enables the league and its players to immediately move on from the Coyotes’ problematic arena situation without attempting to force an involuntarily sale of the franchise. Such an effort would have likely resulted in a protracted legal battle that the league preferred to avoid.
“As everyone knows, Utah is a vibrant and thriving state, and we are thrilled to be a part of it,” NHL Commissioner Gary Bettman said in a statement. “We are also delighted to welcome Ashley and Ryan Smith to the NHL family and know they will be great stewards of the game in Utah. We thank them for working so collaboratively with the League to resolve…
