When the Coyotes NHL franchise was sold to the Smith Entertainment Group and moved to Utah in April, fans and media in Arizona were extremely distraught. Not only was their hockey team of 28 years leaving the state, but de facto owner Alex Meruelo was granted exclusive rights by the NHL to bring the next Coyotes franchise to the desert within five years’ time. After bungling the first franchise, locals all around had little to no faith in Meruelo’s management, let alone him bringing another NHL team to the Grand Canyon State.
It took just over two months for Meruelo to throw in the towel and relinquish his rights to bring both a new arena and Coyotes franchise back to Arizona.
THE AUCTION THAT WASN’T
Before Meruelo’s forfeiture, he was tasked in securing land rights for a new arena. After being evicted from Desert Diamond Arena in 2022, playing the two following seasons in a 5,000-seat collegiate arena, leaving hotel bills partially paid or completely unpaid, and losing the franchise to Utah, Meruelo had an uphill battle to try and get a brand new facility up and running in five years (oddly, the same amount of time it took him to run Coyotes 1.0 into the ground).
A land auction of 110 gross acres off of North Scottsdale Road and Loop 101 in Scottsdale was slated to occur on June 27 at 11:00 am MST. The Meruelo-led ownership group had been keeping an eye on this auction for about a year, banking on the space to host an NHL arena and adjacent entertainment district in the Phoenix metro area. If he were to win the auction, he would not be able to sell the land rights.
Less than a week before the auction, the Arizona State Land Department decided to pull the plug. On Friday, June 21, the ASLD canceled the proceedings, citing that Meruelo needed to apply for a Special Use Permit to build an arena on that property. The existing zoning did call for an indoor hockey facility, but was a holdover from when a youth hockey arena was being planned for the land. The actions of the ASLD point to an NHL arena (and surrounding entertainment plaza) not equivalent to a youth hockey complex in regards to zoning — a concern raised by the Arizona Republic in December and confirmed by PHNX Sports with the City of Phoenix.
The Coyotes management group initially put out a statement railing against the ASLD, stating that they were “forgoing millions, and potentially billions of dollars that would have gone directly to K-12 education”. The Coyotes stated that they had been working “in good faith with the ASLD”, but now proclaimed that “this unprecedented action by the State of Arizona seriously jeopardizes the future of NHL hockey returning to the desert”. The group concluded its statement by saying they were “exploring legal options”, calling the State’s decision “shortsighted”.
ONLY A FOOL WOULD SAY THAT
In spite of the setback, it appeared that Meruelo was not going to give up his vision for a new arena in Scottsdale.
Days later, that’s exactly what he did.
Initially reported by PHNX’s Craig Morgan, news broke on Monday, June 24 that Meruelo had decided to give up his pursuit of a new arena. In addition, NHL Commissioner Gary Bettman also confirmed on Wednesday, June 26 that Meruelo will not be re-activating the Arizona Coyotes.
Bettman let Meruelo retain the spirit of the Coyotes – the name, logo, and trademark – with the caveat a new Arizona-based arena be built before the 2029-30 NHL regular season. If Mereulo succeeded, the Coyotes would be resurrected as an expansion team, and $1 billion of the $1.2 billion sale price to Smith Entertainment Group would have to be paid back to the league. By pulling out early, he saves himself from that huge pay-out.
With Meruelo exercising a mighty renege, he invokes Steve Miller Band to the highest degree:
“Come on, take the money and run…”
HOPE AND LOATHING…IN RENO AND TUCSON?
Amidst the Coyotes abandonment chaos, Barry M. Bloom of Sportico reported Tuesday that Meruelo does have plans to build a new arena for the AHL’s Tucson Roadrunners…in Reno, NV. Jeremy Cluff of the Arizona Republic reminded readers on Wednesday that an initial September 2023 press release from the Grand Sierra Resort (GSR) Capital Investment Project – headed by Meruelo – heralded a brand new 10,000-seat arena, exploring a partnership with the University of Nevada, Reno men’s basketball team. However, with completion of the arena slated for 2026, the Roadrunners could be relocated in time to start the 2026-27 AHL regular season in Reno.
With an uncertain future for the lone pro hockey team in Arizona, the City of Tucson did its part to try and ensure some stability at the minor league level. On May 28, the Rio Nuevo Board approved a financial plan to keep the Roadrunners in Tucson for the next three seasons or more. The Board agreed to pay half the rent at the Tucson Convention Center and at least 18 months of fees for office usage to impress upon the AHL and keep the team Pima County.
After initial rumors of Meruelo wanting to move the team to Tempe in mid-April, the Rio Nuevo Board announced on May 26 that the team would be playing six of its 36 home games at Mullet Arena. The gesture from the Board no doubt coincided with Meruelo’s promise to bring an NHL team back to the Salt River Valley. However, as news broke of Meruelo backing out of the Coyotes’ future, so did the Roadrunners backtrack out of Tempe. The team announced on Monday that all 36 home games would be played at the TCC and not shared with Mullet Arena.
THE BIGGEST LITTLE CITY IN THE WORLD
When the GSR investment was publicized nine months ago, Alex Meruelo was in a much different spot financially. Granted, Meruelo was still projected to be worth $2 billion, but his attention was also divided between big projects in Reno and Phoenix/Scottsdale. With the Coyotes’ essence out of the picture (and an extra $1 billion in his pocket), Meruelo also has the benefit of still owning an AHL franchise. If there is any further evidence that the new Reno indoor arena gets built before 2026, one simply needs to follow the money.
If I’ve said it once, I’ve said it a good amount of times – nothing is done in minor league hockey until it’s done. Meruelo could have shovels in the ground and the new Reno arena completed by 2026, but until the American Hockey League’s Board of Governors signs off on relocation, Reno won’t host an AHL sqaud. The Great Sierra Resort’s rejuventation could be a good bargaining chip, but once again, it actually needs to get done to carry any weight.
MERUELO, THE MISLEADING
In spite of the plan to move the Roadrunners to Reno, remember that Meruelo’s word concerning hockey happenings is anything but reliable. In mid-April, he was promising to bring the Coyotes back by first winning the aforementioned land auction. When the NHL franchise was sold and moved to Utah, Meruelo insisted that the Roadrunners were moving to Tempe. After heavy resistance from the Rio Nuevo Board (and lack of AHL team owners’ approval), six “home” games in Tempe were settled upon. The land auction was canceled on June 21, Meruelo threatened legal action, then news broke on June 24 that he would not pursue a new arena. Bettman then confirmed on June 26 that Meruelo will not be reviving the Coyotes brand.
CONCLUSION
As Meruelo bids farewell to his Coyotes aspirations, Arizona hockey fans are hopeful that a new regime will rise up and take the reins of an expansion bid. With an Atlanta group formally bidding for an NHL team in March, another expansion dance partner in the desert could make two’s company more appealing than just one group vying for a team. Until then, the sole pro hockey survivor is in Pima County, and Tucson’s not going to give up its team without a fight.
Good luck in your future endeavors, Alex Meruelo. My hope is that it doesn't involve pillaging the State of Arizona of its pro hockey resources any further.
That was a good read. I feel bad for Coyotes fans, hopefully they get another NHL team sooner than later. Also, who thought it was a good idea to name an arena Mullett Arena?