Apr 17, 2024; Tempe, Arizona, USA; Detailed view of the Arizona Coyotes logo on their kachina themed uniforms at Mullett Arena. Mandatory Credit: Mark J. Rebilas-USA TODAY Sports Mark J. Rebilas-USA TODAY Sports

Former Coyotes Owners Sue Over Arena Deal

Originally posted on Breakaway on SI | By Jon Alfano | Last updated Mar 12, 2025 12:00 PM ET

It's been almost a full year since the Arizona Coyotes suspended hockey operations, but they aren't fully gone, and neither are their owners unfortunately.

On Friday, IceArizona, the company that owned the Coyotes and still owns the AHL's Tucson Roadrunners, filed a lawsuit against the Arizona Board of Regents, Zach Buchanan of the Phoenix New Times reports. The lawsuit centers around the Coyotes' $3.5 million security deposit for use of Mullett Arena, the 5,000-seat venue on Arizona State University's campus where they played their final two seasons in the state.

In 2022, shortly after they were kicked out of their previous home in Glendale, the Coyotes entered a three-year lease with with the board of regents and OVG Venues, the group that manages Mullett Arena. They played just two seasons at the venue, and now want their money back.

IceArizona's lawsuit claims that team ownership, led by former majority owner Alex Meruelo, was "compelled by the NHL to agree to suspend its franchise rights and sell its hockey operations assets," which contradicts previous reports that the move was "facilitated by the league" rather than forced. The company argues that the sale triggered the "force majeure" clause in its lease, freeing it from any further obligations.

As such, IceArizona claims that ownership is owed its $3.5 million security deposit. The lawsuit claims that the board of regents and OVG "have refused to return" the deposit and "offered various excuses" to not do so, including that IceArizona still owned a third year of rent and that the contract had not been terminated.

IceArizona also claims that it offered to have the Roadrunners play their home games at Mullett Arena after the Coyotes' departure, but the board of regents and OVG only agreed on a few games. The Coyotes' arena only allowed for NHL games at Mullett Arena, not minor-league games.

Shortly after the Coyotes left, Meruelo announced his intentions to move the Roadrunners to Mullett Arena on a full-time basis, but walked those comments back soon after, claiming he "spoke too soon." Soon after, the Roadrunners reportedly agreed to an amended lease to keep them in Tucson through the 2026-27 season. However, when Meruelo abandoned his efforts to revive the Coyotes in June, reports then claimed that he could relocate the team to a new arena in Reno, Nevada starting in 2026.

The Coyotes technically didn't fold when Meruelo sold them. Instead, they became an inactive franchise, with their hockey assets (players, coaches, draft picks, etc.) being sold to the newly-formed Utah Hockey Club. As such, the league treats Arizona and Utah as two separate franchises rather than a traditional relocation.

This article first appeared on Breakaway on SI and was syndicated with permission.

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