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The National Hockey League’s (NHL) board of governors have approved the sale and relocation of the Arizona Coyotes, paving the way for what will be considered a new team to begin play in Utah next season.
Smith Entertainment Group (SEG), led by Ryan and Ashley Smith, who already own the National Basketball Association’s (NBA) Utah Jazz, has bought the franchise and its existing ice hockey assets from Coyotes owner Alex Meruelo for a reported US$1.2 billion.
According to multiple reports, Meruelo will receive US$1 billion of that amount, with the remaining US$200 million to be shared between the league’s owners as a relocation fee.
The transaction will see the Coyotes’ players, draft picks and hockey operations department all transferred to the currently unnamed Utah franchise. It effectively renders the Coyotes franchise inactive, although the deal gives Meruelo the right to resurrect the club as an expansion team if he builds a new arena deemed fit for an NHL team within five years.
The Coyotes have played their home games during the last two seasons at the 4,600-seater Mullett Arena on the campus of Arizona State University. Last year, the club tried to secure land for a new venue in Tempe, but their US$2.1 billion plan for a new arena and entertainment district was rejected by local voters.
The Smiths, meanwhile, have been looking to add an NHL franchise to Utah’s current slate of professional sports teams. In January, they formally requested the league begin an expansion process to bring a team to Salt Lake City.
While talks had already been held with NHL commissioner Gary Bettman, Meurelo’s inability to find a new permanent home for the Coyotes seemingly created a different avenue for the Smiths to secure a franchise.
“The NHL’s belief in Arizona has never wavered,” Bettman said in a statement. “We thank Alex Meruelo for his commitment to the franchise and Arizona, and we fully support his ongoing efforts to secure a new home in the desert 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 have been based in Arizona since 1996, when the franchise was relocated there from Winnipeg.
Meruelo replaced Andrew Barroway as majority owner of the Coyotes in 2019, when he paid US$425 million for control of the franchise.
While he has retained the team’s name, logos and other IP as part of the opportunity to re-activate the franchise in the future, Thursday’s 5-2 win over the Edmonton Oilers was the club’s last game in Arizona for now.
“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,” said Meruelo.
“But this is not the end for NHL hockey in Arizona. I have negotiated the right to reactivate the team within the next five years, and have retained ownership of the beloved Coyotes name, brand and logo. I remain committed to this community and to building a first-class sports arena and entertainment district without seeking financial support from the public.”
Given the nature of Meruelo’s agreement, the new Utah team will need to have its own logos, marks and branding. Ryan Smith told ESPN that the outfit may play with a temporary name and logo next season, stressing that there was no rush to come up with a nickname. The franchise is expected to play at the Jazz’s Delta Center.
“We are honoured to bring an NHL team to Utah and understand the responsibility we have as stewards of a new NHL franchise,” said Ryan and Ashley Smith. “Commissioner Bettman conceived and proposed an ingenious plan that would allow us to acquire an NHL franchise while also helping to address and remedy an immediate need of the NHL.”
“As everyone knows, Utah is a vibrant and thriving state, and we are thrilled to be a part of it,” added Bettman. “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 a complex situation in this unprecedented and beneficial way.”
Having coveted a NHL team for a while, the Smiths finally emerge successful with a franchise for Utah. The state’s Salt Lake City is bidding to host the 2034 Winter Olympics, showing its strong association to winter sports.
This is the third franchise for the Qualtrics co-founder, who also co-owns Major League Soccer’s (MLS) Real Salt Lake and the NBA’s Jazz. The Delta Center has hosted several NHL preseason games, with Smith keen to expand the venue to ensure it can house more fans.
The NHL were evidently unconvinced Meruelo was capable of delivering on his promise to find the Coyotes a new home. The franchise previously announced they were committed to winning an auction in June to acquire a 110-acre plot in the Phoenix area. Should Meruelo be successful in acquiring the land, Coyotes fans will be hopeful of seeing NHL games in Arizona soon, should the league follow through and grant the state an expansion team.
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