Coyotes relocating to Salt Lake City

[Axeman33]

I asked out loud the exact same question!
Imagine:
- buying a team for $300million and selling for $1billion
- then selling your right to expansion at $1billion for $1.5mbillion
That would be legendary business move.

As an aside, as amazing as Meruelo has made out so far I have to ask: Why the HELL would any potential owner want to go BACK to Arizona??? I get it's a big Metro Area, but it has been tried, for over 20 years, in every geographic corner (downtown Phoenix, Glendale, ASU Campus, Tempe rejected an arena etec.) of the Greater Phoenix Area, and it has not once had longterm success or turned a profit.
What will be different THIS time compared to every

You could say something similar to other NHL cities that they have bounced back into. Sometimes, it's a different owner. Sometimes it's a different building. Sometimes it's different government support. Who knows.

[TrailerParkFlyers]

I've been curious can Meruelo sell his ability to get an expansion team?

In 5yrs, expansion cost will 100% be higher than $1b. So Meruelo has a sweetheart deal here for the expansion team. What's the clauses in his deal that prevents him from building the arena, waiting 1yr then sell the team for $1.5B and Meruelo turn a $300m purchase into $1.2B?

So you get Arizona 2.0 and Houston getting an expansion team in 2030. Houston needs to pay $2B, 32 teams get X number of Millions split amongst them. Arizona 2.0 pays $1B and 32 teams get way less than their Houston payments. Meruelo then sells the team for $1.5B and pockets the money, meaning the 32 teams lose out on the payment differences.

I would be shocked if he could sell that right. I am sure the contract would have a clause stating it could not be assigned to anyone.

[Dennis]

I tried looking for the source I saw, I can't even remembered how it was phrased or if it was blatant speculation, but apparently Merulo can't even sell the Coyotes 'brand' as part of his agreement with the NHL.

[LawMan]

I tried looking for the source I saw, I can't even remembered how it was phrased or if it was blatant speculation, but apparently Merulo can't even sell the Coyotes 'brand' as part of his agreement with the NHL.

Multiple reports are that:
- Merulo is selling the team to the NHL for $1 bil. So the NHL gets all rights, including the Intellectual Property (logo, "Coyotes name" etc.)
- NHL is then selling core assets (really just the players and contracts) to Smith for $1.3billion. NHL retains IP

This does 2 things:
- allows NHL to profits $300mil to be split by 31 other owners
- allows NHL to retain Coyotes name and IP for either future use back in Az and/or to sell in the interim.

This happened when the Jets moved to Arizona, allowing the Thrashers to become the Jets upon return.
It makes good sense that the NHL wants to keep the name IP for both interim profits and future use back in Arizona.

[Dennis]

https://www.sportico.com/leagues/hoc...ty-1234775401/

In a complicated transaction, Coyotes owner Alex Meruelo is selling that part of the NHL franchise to Jazz owner Ryan Smith, but Meruelo will maintain the Coyotes’ name, logos and trademarks, plus ownership of the AHL’s Tucson Roadrunners.

https://twitter.com/CamCox12/status/1779242265992396833?ref_src=twsrc%5Etfw%7Ctwcamp%5 Etweetembed%7Ctwterm%5E1779242265992396833%7Ctwgr% 5E67a06093e4ce440f87b22282de51f1936d09177c%7Ctwcon %5Es1_&ref_url=https%3A%2F%2Fwww.12news.com%2Farti cle%2Fsports%2Fnhl%2Fcoyot
es%2Farizona-coyotes-sale-reloaction-salt-lake-city-utah%2F75-fec1b6f7-dca5-43b6-af92-77f48510b1a7

The Hockey operations are being sold, business side and name will remain here. The Tempe arena vote fail was the last straw. The league no longer wants them playing at Mullett.

GM Bill Armstrong decided to address the team on his own. @12SportsAZ

[LawMan]

https://www.sportico.com/leagues/hoc...ty-1234775401/



https://twitter.com/CamCox12/status/1779242265992396833?ref_src=twsrc%5Etfw%7Ctwcamp%5 Etweetembed%7Ctwterm%5E1779242265992396833%7Ctwgr% 5E67a06093e4ce440f87b22282de51f1936d09177c%7Ctwcon %5Es1_&ref_url=https%3A%2F%2Fwww.12news.com%2Farti cle%2Fsports%2Fnhl%2Fcoyot
es%2Farizona-coyotes-sale-reloaction-salt-lake-city-utah%2F75-fec1b6f7-dca5-43b6-af92-77f48510b1a7

Good to know Thanks!
That gives him a good amount of leverage in being able to return a new franchise to Arizona.

[rataylor22]

I asked out loud the exact same question!
Imagine:
- buying a team for $300million and selling for $1billion
- then selling your right to expansion at $1billion for $1.5mbillion
That would be legendary business move.

As an aside, as amazing as Meruelo has made out so far I have to ask: Why the HELL would any potential owner want to go BACK to Arizona??? I get it's a big Metro Area, but it has been tried, for over 20 years, in every geographic corner (downtown Phoenix, Glendale, ASU Campus, Tempe rejected an arena etec.) of the Greater Phoenix Area, and it has not once had longterm success or turned a profit.
What will be different THIS time compared to every

This isn't necessarily true. The team was successful prior to it's move to Glendale, and was actually relatively successful out of the ASU rink. If you've ever been to Phoenix you'll understand why a shitty team was unsuccessful in Glendale (although even then their playoff teams had relatively successful attendance numbers).

I think Phoenix is a pretty easy market to succeed in, which more points to the sheer level of incompetence every owner there has had.

[pmorrow]

They've approving it officially tomorrow.


Elliotte Friedman
@FriedgeHNIC
·
9m
With puck drop approaching in Arizona, there will be a Board of Governors meeting at 3ET Thursday to approve sale of the Coyotes to Utah.

[Axeman33]

https://twitter.com/ArashMarkazi/sta...91110924628180

Utah Jazz owner Ryan Smith on the Coyotes relocating to Salt Lake City: “There’s no secret. Not everything on the internet is true but in this case it’s true.”

https://twitter.com/ArashMarkazi/sta...92838772302226

Utah Jazz owner Ryan Smith on the NHL in Salt Lake City: “I have incredible faith in the people of Utah. We show up. It’ll be packed. I’m excited about that and showing that. There’s so much work to do from the practice facility on down to everything else but we’ll get it done.”

[2014olympicgold]

Meruelo wasn't even at the game last night...But I guess he did that because he didn't want to get harassed.

What is embarrassing though is they threw out Doan's jersey retirement banner, and someone had to get it and give it to Doan.

It is also confirmed (not officially though?) that Meruelo's son was operating the teams social media after the team fired the whole social staff, explaining why the team was prematurely posting things, and kinda just generally off. Alex Meruelo Jr was also handed "numerous" roles he wasn't qualified for.

The team cancelled the outdoor viewing party last night, however I believe it was due to weather. But seeing pictures this morning, it looked pretty good out for the people who still went and did their own viewing party.

Then to put the final stamp on an awful management of rumours and the team in general, the social media account tweeted out "See you all next on June27th #YotesForever". Honestly, the way this guy has operated his whole tenor...How will Arizona support a franchise he owns when he exercises his expansion option?

[Pengwin7]

I wonder if... off the record... Bettman said "Just steer clear of any public appearances. Whatever you think you have to say - won't be received well."
As a businessman, this team will both go down as an enormous financial success (once sold) as an enormous failure (in the public's eyes).
Brutal. Meruelo... just brutal. I effin can't stand businessman that fall ass-backwards into $$$. Lucky. The guy got lucky.

[2014olympicgold]

I wonder if... off the record... Bettman said "Just steer clear of any public appearances. Whatever you think you have to say - won't be received well."
As a businessman, this team will both go down as an enormous financial success (once sold) as an enormous failure (in the public's eyes).
Brutal. Meruelo... just brutal. I effin can't stand businessman that fall ass-backwards into $$$. Lucky. The guy got lucky.

Or the guy sold his tickets for a massive profit (tickets were going for $1,000+) lol.

Nah he was def either asked to stay away, or just knew it was for the best to stay away

[rataylor22]

What is embarrassing though is they threw out Doan's jersey retirement banner, and someone had to get it and give it to Doan.

Just a little more context on this. Representatives from the city of Glendale indicated they repeatedly contacted the Coyotes management to come get the banner and never got a response. Now, people have rightly pointed out they could have couriered the banner rather than tossing it, but also consider how much dislike/contempt they probably have towards Merulo and probably the franchise. Now that shouldn't necessarily filter down to honored players, but still.

[pmorrow]

Chris Johnston
@reporterchris
·
1m
The sale and relocation of the #Yotes to Utah received unanimous support from the NHL's Board of Governors.

[PenguinHunter]

Chris Johnston
@reporterchris
·
1m
The sale and relocation of the #Yotes to Utah received unanimous support from the NHL's Board of Governors.

NHL Board of Governors are probably partying it up tonight because they will again have 32 NHL teams in 32 NHL arenas.

I would be curious:

how much hockey related revenues were lost because of the smaller arena and the crap show that happened in Arizona the last two years

VS

how much 'new' hockey related revenues were gained between now and the start of the season with the new team.