The Arizona State Land Department has abruptly canceled a land auction scheduled for June 27, a move that has frustrated the Arizona Coyotes’ owner, Alex Meruelo, who was counting on it to revive his dormant NHL team.
In April, the NHL board of governors greenlit the creation of a new franchise in Utah, transferring the Coyotes’ hockey assets to Smith Entertainment Group, while Meruelo retained the intellectual property. This arrangement included a clause allowing Meruelo to reactivate the Coyotes if he could construct a suitable NHL facility within five years.
The Coyotes had set their sights on a 95-acre plot in north Phoenix, intending to build an arena, practice facility, theater, and housing units. Earlier this year, the ASLD board approved a $68.5 million appraisal for the land and scheduled an auction. Construction was slated to begin in the second quarter of 2025, aiming for a 2027 opening.
However, the land department canceled the auction, citing the need for a Special Use Permit for the proposed 17,000-seat arena, which could expand to 18,500 seats for other events. The department emphasized that securing zoning and use permits before auctions is not uncommon.
In response, the Coyotes criticized the decision and are considering legal action. They stated, “After over a year of planning and meeting every obligation required under Arizona law, the Arizona State Land Department unilaterally canceled the auction that was scheduled to occur on June 27 for the site that has been identified as the future home of the Arizona Coyotes.” The team argued that this action jeopardizes the future of NHL hockey in Arizona and forgoes significant revenue for state education.
Scottsdale Mayor David Ortega supported the cancellation, citing concerns over the land’s zoning for such a large arena and accusing Meruelo of unrealistic ambitions.
As the situation develops, the Coyotes are exploring all options to challenge the state’s decision and secure a future home for their team in Arizona.
