What’s in store for the future of the Arizona Coyotes as land auction draws near

The future of the Arizona Coyotes franchise has been a hot topic for well over a decade now – and that’s unlikely to change any time soon.

Tyler Yaremchuk and Frank Seravalli chatted about the team on Daily Faceoff Live on Thursday following the NHL’s GM meetings in Florida earlier this week:

Tyler Yaremchuk: Gary Bettman didn’t say much about the future of the Yotes. But again, what’s more interesting is what he didn’t say.

Frank Seravalli: “Yeah. And that part to me is really what I’ve keyed in on over the last 24 to 48 hours. There’s certainly a lot happening behind the scenes with the Coyotes.

“Now, let me be abundantly clear when I say this: I think the NHL’s preference, when it’s all said and done, is for this arena situation to be sorted out, and that the team remains in Arizona. They’ve been committed to that market for what feels like two decades now with all the work that they’ve done to keep that franchise propped up.

“That said, we’re reaching the end of the rope and I don’t think they have a ton of faith in this ownership group. And this is my opinion, based on some of the information that we’ve received from behind the scenes, that getting to this auction date in June will ultimately be successful. Remember, they were up for a referendum in Tempe and everyone was thinking that it was a slam dunk, with no chance that the Coyotes would lose vote. And they did. They’ve been forced to consider some alternate realities since then.

“The big thing for me is the league had an opportunity to come out this week at the GM meetings and say definitively that the Arizona Coyotes are going to be remaining in Mullet Arena next season, regardless of whatever happens with this vote. They did acknowledge that with this auction potentially being held sometime in the June 10th range, with no official date set yet, that they don’t really have enough time to pivot and relocate that team for next season.

“So, if you don’t have enough time to pivot and relocate, then why not just come out and say they’re remaining? My point is they’re working on a ton of contingencies behind the scenes to potentially move this team for next season in Salt Lake City – regardless of even potentially getting to that auction date.”

Tyler Yaremchuk: “So if there is still a chance, like you’re saying, the Coyotes still move – and you mentioned maybe some things behind the scenes that need to be figured out. What are some of the steps, or maybe some of the hurdles that the league would face in this process?”

Frank Seravalli: Well, that’s the part that the league is actually sorting through themselves right now. What machinations does the league have to essentially wrestle back control of this franchise? If that’s what they want to do.

“The point that has been driven home with me, and speaking to many close to the situation in Arizona, is that Alex Meruelo, their owner is not just confident, but has also been somewhat combatant in this issue in that he’s fully believing that he’s going to get this arena deal done; that he’s going to win the auction and that he’s going to get steel and shovels in the ground to finally build this arena for the Coyotes.

“I think the league is less convinced and they’re looking through their constitution, they’re examining their legal options of “What can we do in this case if we want to take back control of this franchise?” My understanding would be part of it would be to make Alex Meruelo, and this ownership group whole, with every dollar that he spent to this point – not just the fee to buy the franchise, but also the debt service that they’ve had the checks that they’ve been writing to under write the franchise. There’s a lot that goes into that. And then, essentially take back control of the team to then have Ryan Smith from Salt Lake City come in and acquire the franchise with a significant relocation fee, which could then be distributed to a lot of the other owners around the league.

“The big question is 1) can they do it? 2) will there be a fight? Or 3) do they have the stomach for it? Or is it better to just see if the Coyotes essentially succeed or fail on their own before then going through the next step in the process and dealing with this on the other end?

“So then the next part of this would be, well, what happens with Arizona? Let’s say, They do decide to pull up stakes and somehow they work out a deal to relocate this team to Salt Lake City.

“What happens with the market? I think they’re still big believers in the market. And this is my opinion, that there would be some component to whatever happens next that within the next five years or so, they then have the ability to bring an expansion franchise to Arizona, either with the same ownership or new ownership and a new arena already in place so that they can essentially start fresh.

“That’s been some of the thought process that’s been explained to me as to some of the contingencies and what’s been going on behind the scenes. All of it unofficial, of course. But I think it’s important that everyone knows that the league is they’re paddling underwater here to try and understand the situation and put their arms around it over these next 60 to 75 days.”

You can watch the full episode here: