The news comes after a complex transaction involving Coyotes owner Alex Meruelo, Utah Jazz owner Ryan Smith, and the NHL.

According to an NHL source, the Coyotes' hockey operations department and players will be sold, rebranded, and moved to Salt Lake City in time for the 2024-25 season. The relocation is estimated to cost $1.2 billion. Meanwhile, Meruelo will retain the Coyotes' name, logos, trademarks, and ownership of the AHL's Tucson Roadrunners.

Meruelo's focus remains on his ambitious plan to build a $3 billion arena and entertainment project in North Phoenix. He has been given a five-year window by the NHL to complete the proposed project and apply for another NHL franchise. If successful, Meruelo would pay back the league the $1 billion sale price in exchange for the rights to the new Coyotes.

As the deal is being finalized in Salt Lake City, the Coyotes' players were informed of the relocation by general manager Bill Armstrong prior to a game in Edmonton. They will now play their home games in an upgraded Delta Center. Their final game in the Valley will be against the Oilers at the Mullett Arena on the campus of Arizona State University.

It is worth noting that Meruelo acquired the team in July 2019 for $425 million, and it was recently valued by Sportico at $675 million, making it the lowest valued team among the NHL's 32 franchises.

Meruelo's commitment to the arena project is evident as he intends to pursue a June 27 auction to acquire a 95-acre parcel of Arizona state trust land on the border of North Phoenix and North Scottsdale. The estimated cost of the project would exceed $1 billion for infrastructure, the arena, training complex, and theater in its first phase.

The Coyotes were in danger of relocating regardless of the arena project outcome, as they would have been forced to play at the 4,600-seat Mullett Arena for at least three more seasons. This arrangement was deemed unfair to the players, who were dissatisfied with the subpar conditions at the college rink. Moreover, the team faced significant financial losses, which Sportico estimates to be in the mid-to-high eight-figure range.

To address this issue, all parties involved reached an agreement that would see Meruelo's portion of the franchise become inactive for up to five years while the players move to Salt Lake City. Negotiations are ongoing to relocate the Tucson Roadrunners to the Mullett Arena as a temporary replacement for the Coyotes.

This relocation marks a new chapter for the Arizona Coyotes, as they embark on a journey to Salt Lake City while their ownership keeps their future alive with the hopes of a new arena project in Phoenix. Only time will tell whether the franchise will rise again in the desert city they once called home.