Former Arizona Coyotes owner wants $3.5M security deposit back from ASU
TEMPE, ARIZONA - APRIL 17: General view of t-shirts hung on seats inside Mullett Arena before the NHL game between the Arizona Coyotes and the Edmonton Oilers on April 17, 2024 in Tempe, Arizona. Tonight's game likely marks the end of 28 years for th
PHOENIX - The former owner of the Arizona Coyotes is suing ASU and the Arizona Board of Regents.
What we know:
Alex Meruelo's IceArizona Hockey Co. LLC wants its $3.5 million security deposit back after the team left Arizona for Utah two years into their three-year lease at ASU's Mullett Arena.
The March 7 lawsuit says team ownership was "compelled" by the NHL to sell the team, leaving them unable to complete the contract.
The complaint argues that the sale counts as a "force majeure event," and they should get their deposit back. That clause in contracts typically lets both sides break a contract if there is a natural disaster, pandemic, or other unavoidable event.
The complaint goes on to say the Coyotes owner tried moving the AHL team, the Tucson Roadrunners, to Mullett Arena, but there was a conflict with the Valley Suns, an NBA G League team that plays at the arena as well.
ASU and the Board of Regents say they are still owed $820,000 in rent for the last year of their contract with the Coyotes. The lawsuit says, however, ASU and the Board of Regents aren't entitled to the money because of the "force majeure event."
The Coyotes entered into the agreement with ASU on April 6, 2022, and were supposed to honor it through June 30, 2025.
"This three year term was intended to allow the Coyotes to continue to host NHL games and play while searching for a permanent hockey venue in the Phoenix metro area," the lawsuit said.
Who are the defendants:
The Arizona Board of Regents describes itself as, "The governing board for the state’s public universities: Arizona State University, Northern Arizona University, and the University of Arizona."
The former owner of the Arizona Coyotes was Alex Murelo, who maintained the rights to the Coyotes following the sale to Smith Entertainment Group, but relinquished them soon after to the NHL.
The backstory:
In 1996, the Phoenix Coyotes became Arizona's first NHL team, eventually becoming the Arizona Coyotes in 2014. In 2024, the league announced the team would be leaving Arizona for Utah following troubled ownership by Meruelo.
The Coyotes played at the former Gila River Arena in Glendale, but ended their year-to-year contract after the 2021-22 season. The team played the next two seasons at ASU's Mullett Arena.
Tempe residents voted down an entertainment district in 2023 that would have included a brand-new hockey arena, housing, dining and shopping. In 2024, there was another option for the team to buy land and build an arena near Mayo Clinic in Phoenix near Scottsdale, but nothing ever came of the idea.