NHL Rumors: Coyotes ownership looking to sell franchise, seal relocation to Salt Lake City

The ongoing saga involving the Arizona Coyotes’ future may be coming to a conclusion. Sources close to the matter have reportedly told Daily Faceoff that an agreement is close to finalization. The deal would involve moving the Coyotes from the desert to Salt Lake City, Utah.

The report suggests there is a verbal agreement to sell the franchise and relocate it. However, no official deal is in place at this time.

Media speculation has prompted the NHL to send a memo to its Board of Governors, notifying them of the situation. Current players have also been told of the purported deal.

The complex negotiation needs to close as soon as possible for the new Salt Lake City franchise to debut next October.

The current plot is reminiscent of the Thrashers’ move from Atlanta to Winnipeg. On that occasion, the sale and relocation were completed by May 20th, 2011. However, the deal formally went through on May 31st.

The proposed sale reportedly involves Ryan Smith of the Smith Entertainment Group, owner of the NBA’s Utah Jazz. Upon relocation, the rebranded club would play out of the Delta Center, a basketball-first arena. The plan also includes building a new multi-purpose arena for the Jazz and rebranded Coyotes.

Smith recently told the Athletic:

"We are interested. We are ready, and we’re a partner."

It seems things are moving at a breakneck speed. They have to move fast if Smith plans to have a new team in place by next fall.

Another Path for the Coyotes

NHL Commissioner Gary Bettman has been an avid defender of hockey in Arizona. He’s actively pushed for a deal between current owner Alex Meruelo and the state of Arizona regarding a new arena.

Ideally, the Coyotes would stay in Arizona by building a new arena in north Phoenix. The potential site was identified as part of the Arizona State Land Trust auction in late June of this year.

Even with the land for a new building secured, the 'Yotes would continue to play out of Arizona State University at Mullet Arena. The league hopes to pause the possible sale until after the land auction in June, guaranteeing that the Coyotes play one more year in Arizona.

Meruelo potentially stands to get up to $1 billion if he sells. Smith is reportedly prepared to pay a $1.2 billion including a relocation fee. The fee would be distributed among current NHL owners.

Nevertheless, a relocation announcement could come as early as April 18th, following the season’s final game.

There are still many question marks surrounding this deal. But whether the Desert Dogs stay or leave, a decision needs to be made soon. Time is ticking away, especially with the playoffs right around the corner.