Arizona Coyotes owner Alex Meruelo has made the decision to dissolve what remains of the NHL franchise, according to a source familiar with the situation. Meruelo informed his staff on Monday that he will no longer pursue the construction of a new arena in the Phoenix area, leading to the disbandment of the franchise within a month. The team's minor league affiliate, the Roadrunners, will continue to play their home games in Tucson, Arizona for the 2024-25 season before eventually moving to a new arena in Reno, Nevada.

This decision comes on the heels of the Arizona State Land Commission canceling an upcoming auction for a plot of land where Meruelo had intended to build a $3 billion arena and entertainment complex for the team. The commission stated that Meruelo would need a Special Use Permit to proceed with the arena construction on the property, which had already been zoned for such purposes. Phoenix mayor Kate Gallego expressed her disinterest in supporting Meruelo's plans, citing potential competition with the city-owned Footprint Center, home to the NBA's Suns and WNBA's Mercury.

Expected to be a topic of discussion at the NHL Boards of Governors meeting on Thursday, Meruelo is anticipated to return the team's assets, including its marks, logo, name, and rights to the Phoenix area, back to the NHL. In April, Meruelo had retained these rights when the franchise was sold with the assistance of the NHL. The hockey operations and players have since been sold to Utah Jazz owner Ryan Smith for $1.2 billion and relocated to Salt Lake City, Utah, where they will be known as the Utah Hockey Club in the interim.

Meruelo's original purchase of the Arizona Coyotes in 2019 for $425 million has resulted in significant financial losses for the owner, with reports indicating losses between $30 million and $60 million each season. The team has faced a series of venue changes, playing the past two seasons at Mullett Arena, a 5,000-seat college building in Tempe, Arizona, following eviction from the former Desert Diamond Arena in Glendale.

Sportico's most recent NHL valuations placed the Coyotes as the least valuable franchise in the league, with an estimated value of $675 million. While the future of the team remains uncertain, the decision to disband highlights the challenges faced by the Coyotes and their inability to secure a long-term home in the Phoenix area.