Thomas Hawthorne, Thomas Hawthorne/The Republic via Imagn Content Services, LLC

Owners of the Arizona Coyotes sue to get $3.5M security deposit

Originally posted on Burn City Sports
By Tanner Tortorella | Last updated Mar 12, 2025 4:29 PM ET

TEMPE – Eleven months ago, the NHL Board of Governors approved the sale of the Arizona Coyotes for $1.2 billion to Smith Entertainment Group, which relocated the franchise to Utah. The decision broke the hearts of hockey fans in Arizona, as their favorite team was leaving them. The past year has allowed Coyotes fans to grieve the loss of their team. However, that pain reappeared in news headlines with IceArizona, the company that owned the Coyotes, filing a lawsuit to regain their $3.5 million security deposit for Mullet Arena.

Arizona played its final two seasons in Arizona State’s Mullet Arena after being kicked out of Desert Diamond Arena in Glendale. The franchise struck an agreement with OVG Venues to use the facility for three seasons. However, fellow owner Alex Meruelo sold the team with days left in the 2023-2024 season in the arena.

The decision shocked not only fans but also IceArizona. The lawsuit claims that the sale was “compelled by the NHL to agree to suspend its franchise rights and sell its hockey operations assets.” Meruelo’s sale of the Coyotes, while helped facilitated by the league, wasn’t forced by the NHL to make the sale.

Regardless, IceArizona is claiming that the sale violates the “force majeure” clause in the lease, which would allow them to receive the desired $3.5 million security deposit. OVG has rejected IceArizona’s claim for the deposit for various reasons or “excuses,” as the lawsuit states.

Whether or not IceArizona gets its deposit back, hockey in Valley is still gone, and the lawsuit to get the security deposit back reopens some old wounds for Coyotes fans.

This article first appeared on Burn City Sports and was syndicated with permission.

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