Leaving Arizona: Coyotes moving to Salt Lake City
The Arizona Coyotes are on the verge of relocating to Salt Lake City.
The NHL board of governors has to approve the transaction, but all signs point to Utah Jazz owner Ryan Smith acquiring the beleaguered franchise, which began its run in the desert back in 1996 following relocation from Winnipeg.
News about the Coyotes' move hit hyperspeed in the past week after multiple reports of the NHL preparing two different schedules, one with the team in Arizona and another with the team in Utah. The news came just days after the Coyotes had released images of the new arena they hoped to build outside of Phoenix.
What happened? Why is the team moving now, after several other instances in which it should have but didn't relocate? Here's the full picture, as we understand it, regarding the past, present and future of the Arizona Coyotes, courtesy of ESPN's Ryan S. Clark, Kristen Shilton and Greg Wyshynski.
While the Salt Lake City market has intrigued the NHL, the league's decision to bring a team to that market is tied to having a deep-pocketed owner that wants one, and an arena ready to house one.
Ryan and Ashley Smith, owners of the NBA's Utah Jazz, have been seeking an NHL team for a few years. In January, Smith Entertainment Group formally requested that the NHL initiate an expansion process and bring a team to Salt Lake City.
"The Utah expression of interest has been the most aggressive and has carried a lot of energy with it," NHL commissioner Gary Bettman said at the NHL All-Star Game in February.
Ryan Smith had spent several years building a level of trust with Bettman. He had an arena in Delta Center, home of the Jazz, that had hosted NHL exhibition games. Smith told the NHL there would be renovations to make Delta Center more hockey-friendly if he was ever awarded a franchise.
Smith said in January he didn't care how he acquired the team, saying: "Our goal is NHL in Utah. And I'll leave the rest up to Gary." But an NHL source told ESPN that Smith's preference was to have an expansion team in Utah -- and along with it, the chance to build one through an expansion draft.
His willingness to forgo that and accept a relocation was a key factor in the Coyotes moving to Salt Lake City.
Beyond the building and the owner, the NHL believes it's a market with a ton of potential for hockey. It's a winter sports town, and one that's expected to host the 2034 Winter Olympics -- a bid that could produce a new arena for the Jazz and the new NHL team. Salt Lake City has also been experiencing an economic boom: a 2024 report by the Milken Institute ranked Salt Lake City fourth among 403 U.S. cities in growth of jobs, wages and high-tech industry.
Like Arizona, having a team in Utah also fits nicely with the location of several other U.S.-based franchises in the Western Conference. -- Wyshynski
If approved, multiple sources told ESPN that Smith will pay between $1.2 and $1.3 billion for the team. Coyotes owner Alex Meruelo will receive $1 billion. The rest of the NHL's owners will split between $200-$300 million as a relocation fee paid by Smith.
Sources have indicated that the total transaction is a complicated one, as it's not a typical relocation. It's expected the NHL will buy the Coyotes from Meruelo and sell what's essentially a clean slate new team to Smith, who will retain the Coyotes' players and hockey operations staff in the transaction.
This will allow Meruelo the chance to "restart" the Coyotes down the line.
Sources told ESPN that satisfying Meruelo was a key to the transaction. There was concern within the league as far back as NHL All-Star Weekend that Meruelo could wage a prolonged legal battle over relocation if the NHL decided it wanted the franchise moved, due to uncertainty about the Coyotes' arena plans.
One way to satisfy Meruelo was to give him around $1 billion in the transaction. But Meruelo still wanted to own an NHL team in Arizona and still planned on building an arena for one. The NHL had to find a creative way to keep the door open for Meruelo in Arizona while moving the current incarnation of the Coyotes.
Meruelo is still seeking to win an auction for a 95-acre parcel of land in north Phoenix, where he intends to build an arena, a practice facility, a theater, housing units and retail. The auction for that land is set for June 27.
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It's the latest arena plan for the team, which has been seeking a permanent home since the city of Glendale terminated its lease with the Coyotes at Gila River Arena following the 2021-22 season. The Coyotes moved to Mullett Arena while seeking an arena solution in Tempe. The Coyotes believed they had one with a 16,000-seat arena in a proposed $2.1 billion entertainment district, but voters rejected that plan in May 2023.
It was after the Tempe vote failed that the NHL began considering its options with Arizona. The league supported Meruelo's attempt at winning the land auction and building his arena, but questions surrounding its eventual completion were numerous. That included cost, infrastructure and timeline -- the Coyotes said shovels wouldn't be in the ground until 2025, which meant the team wouldn't play in Mullett Arena until 2027, if not longer.
Thus, Bettman and the NHL came up with an ingenious way to satisfy their concerns and Meruelo's needs. It's expected that the final transaction will include a clause that allows Meruelo to "reactivate" the franchise as an expansion team -- paying what's expected to be a $1 billion expansion fee if that happens -- between now and 2029 if his arena project is completed.
All of the team's intellectual property -- including those iconic Kachina jerseys -- would remain with Meruelo. It's an agreement that evokes the deal made with the city of Cleveland when the Browns moved to Baltimore in 1995.
If the project is completed, the NHL can return to a market where it clearly wants to have a team -- witness the constant fights to "save" the Coyotes since their bankruptcy in 2009 -- and have a state-of-the-art arena ready for an expansion team. If the project doesn't come to pass, Meruelo walks away with $1 billion for having let the Coyotes move to Utah. -- Wyshynski
Every NHL team has personnel decisions they must consider in the offseason, and that would have been the case for the Coyotes whether they stayed in Arizona or relocated to Salt Lake City.
Per Cap Friendly, the team has 13 players who are under contract for next season. It's a group that includes forwards such as Nick Bjugstad, Logan Cooley, Lawson Crouse, Clayton Keller, Matias Maccelli and Nick Schmaltz. Cooley was the third pick of the 2022 draft and is part of a core of homegrown players that includes Josh Doan, Dylan Guenther, Keller and Maccelli, among others.
They have three pending unrestricted free agents, including defenseman Travis Dermott, who could re-sign with the team or head elsewhere. They also have seven restricted free agents who are in need of a new contract. Five of those RFAs are defensemen, such as Sean Durzi, J.J. Moser and Juuso Valimaki.
All those players under contract could either remain with the franchise or get traded elsewhere, which is a scenario that every NHL franchise faces in the offseason.
Still, relocated teams go through changes, which was the case when the Atlanta Thrashers became the Winnipeg Jets after the 2010-11 season.
Of the 38 players that played at least one game for the Thrashers, there were 23 that remained with the club during their inaugural campaign in Winnipeg. It's a group that included Nik Antropov, Dustin Byfuglien, Evander Kane, Andrew Ladd and Blake Wheeler.
Atlanta's transition to Winnipeg also saw changes with the coaching staff and the front office. The Thrashers hired Craig Ramsay at the start of their last season in Atlanta only to have the team's new ownership group move on from Ramsay and hire Claude Noel, who was the head coach of the Vancouver Canucks' AHL affiliate that was already in Winnipeg (the Manitoba Moose).
The Thrashers also hired Rick Dudley as their general manager in April 2010, but he was gone by June 2011. He was replaced with Kevin Cheveldayoff, who has been the only general manager the franchise has known since its time in Winnipeg.
What's the situation with the current coaching staff and front office that's in place?
Coyotes coach Andre Tourigny is about to finish his third season with the club. Back in August, he signed a three-year extension, with general manager Bill Armstrong saying at the time, "He is an excellent coach, leader and communicator who has helped us establish a tremendous culture in our dressing room. Our players like him, respect him and compete hard for him."
The club also signed assistant coach Mario Duhamel and goaltending coach Corey Schwab to multiyear extensions just days after announcing Tourigny's new deal.
Less than a month later, the club announced it had signed Armstrong to a multiyear extension. Armstrong has been with the club for four seasons and has overseen an organization that has worked to develop one of the stronger farm systems in the NHL. Back in February, the team also gave contract extensions to director of amateur scouting Darryl Plandowski and associate director of amateur scouting Ryan Jankowski. -- Clark
The team's players have been guarded publicly with their comments so far, waiting to learn more about how official the situation would become before opening up. They had, after all, answered questions when rumors of the franchising relocating cropped up in years past.
"We've just tried to focus on hockey and since I've played in Arizona, there's always been a lot of rumors, so we try to do as best we can to try and focus on hockey," Keller said. "It was definitely in our heads. You can say it's not a distraction, but buddies, family, people are always texting and keep putting it in your head. [Tourigny] said we had another opportunity to deal with the same thing and
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30 of April 2024
