Report: Coyotes owner Alex Meruelo no longer pursuing new arena

Alex Meruelo’s dream of bringing the Coyotes back to Arizona is not looking good.

PHNX Sports’ Craig Morgan reported Monday that Meruelo, the Coyotes owner, addressed the Coyotes staff earlier in the day and told them that ownership has no plans to look for another arena option.

The report comes just three days after the Arizona State Land Department cancelled the June 27 auction the Coyotes were expecting to take part in as part of their hopes of building a new arena.

The ASLD is looking for Miracle Development, LLC, the Coyotes’ developer, to acquire a special use permit in order to provide certainty that the organization can follow through on its plan to build on the land.

In a statement released on Friday, the Coyotes expressed their shock and displeasure at the cancellation of the land auction, believing it “seriously jeopardizes” any NHL return to Arizona.

“It has been made very clear to the State of Arizona that the Coyotes are committed to building out the infrastructure, going through the necessary approvals and developing the site into a world class destination, yet the ASLD has cancelled the auction despite the objections of the Coyotes less than a week before the scheduled auction date,” the statement read.

Meruelo sold the Coyotes to Utah’s Ryan and Ashley Smith in a $1.2-billion deal brokered by the league after the regular season.

Meruelo retained the rights to the Coyotes’ name, logo and trademark. He also got a five-year window granted to build an arena and reactivate the Arizona franchise.

The reactivation of the franchise would have required Meruelo to pay back the $1 billion that he received when he sold the team.

The Coyotes had been in turmoil since the conclusion of the 2021-22 season, when the City of Glendale opted not to renew its contract with the team to play at Gila River Arena. Voters then rejected, in early 2023, a proposed entertainment district that would have included an arena in Tempe.

The team had been playing at Mullett Arena, a rink with a capacity of 4,600 for NHL games on the campus of Arizona State University, for the past two seasons.