The National Hockey League

Coyotes expected to move to Utah, but approval needed

NHL

The Arizona Coyotes’ impending relocation to Salt Lake City, Utah marks a significant development in the NHL landscape.  While the move still awaits approval from the Board of Governors, all indications suggest that Utah Jazz owner Ryan Smith will acquire the struggling franchise.

The decision to bring a team to Salt Lake City is not only driven by the market’s potential but also by the presence of a deep-pocketed owner like Smith, who has been actively seeking an NHL franchise for the city.  His willingness to invest in the team and renovate the Delta Center, home of the Jazz, has been pivotal in the recent decision-making process.

In approved, the transaction would see Smith pay approximately $1.2 to $1.3 billion for the Coyotes, with current owner Alex Meruelo receiving $1 billion.  The remaining NHL owners will split a relocation fee in the $200 to $300 million range.  The deal would see the NHL buying the Coyotes from Meruelo, followed immediately by a “clean slate new team” offered to Smith, who would acquire the Coyotes players and hockey operations staff.

The relocation of the team would allow Meruelo the opportunity to “restart” the Coyotes in the future, should his plans for building an arena in the Phoenix area come to fruition.  Meruelo has plans to bid for land to build an area.

In terms of team identity in Utah, it is likely that the franchise will adopt a new name, as indicated by Smith’s survey asking for suggestions.  The new name would reflect the region and its hockey culture, with several names being suggested that play of the state’s nickname of the “Beehive State”.  

The team would originally play at the downtown Delta Center next season.  Government support has already been acquired by Smith for a renovated entertainment district that could include a new NHL/NBA arena.