Arizona Coyotes in the process of finalizing ownership change

Alex Meruelo is reportedly finalizing a deal that would make him the majority owner of the Arizona Coyotes.

Ever since they moved from Winnipeg at the end of the 1996 season, the Arizona Coyotes have never found themselves on solid footing in the hockey community. Their existence in the desert has been plagued by attendance woes, a lack of on-ice success, and insufficient financing.

The struggling franchise has once again changed hands, as the Coyotes once again find themselves with a new owner.

From Yahoo Finance:

"According to Sportsnet’s John Shannon, Andrew Barroway has agreed to sell his majority stake of the NHL franchise to billionaire entrepreneur Alex Meruelo. Shannon notes that Barroway will remain a partner in a minority position, but the decision to cede control of the franchise in large part ends his uneven ownership tenure."

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This is a very similar arrangement to the deal the Carolina Hurricanes reached with their new owner Thomas Dundon last January. Dundon bought a majority stake in the Carolina franchise, owning 61% of the team, with the rest owned by former majority owner Peter Karmanos, who stayed on in a reduced role.

Barroway previously bought out the rest of the ownership group in 2017. The Hurricanes arrangement allows Dundon to buy the entirety of the franchise in three years, although there’s no word if the deal for the Coyotes includes any such provision.

The Coyotes were valued at $290 million in Forbes 2018 listing of NHL franchises. That placed them last among the NHL’s 31 franchises (Seattle expansion wasn’t included).

Although news of the sale didn’t include financial specifics, Barroway most likely thinks the team is worth more. Barroway tried to sell 49% of the Coyotes last summer, valuing the franchise at $500 million.

New ownership often provides a boost for struggling franchises, even if the improvement is short-lived. In their first year under new ownership, the Carolina Hurricanes reached the playoffs for the first time since 2009. With the Coyotes just barely missing the playoffs this past season, the new vote of confidence that comes with new ownership might be the thing that pushes them over the top.

Of course, with anything involving the Coyotes, the issue of stadiums and relocation come front and center. The Coyotes have had well-publicized arena woes the past few years, with the threat of relocation constantly looming.

While the franchise has in the past said a new arena in the Phoenix area is their goal, the news of the sale offers no concrete assurance the team won’t be on the move. The only news is that the sale will be discussed by the NHL Board of Governors during the upcoming NHL awards in Vegas before being finalized.

As much as the new ownership seems to be a stabilizing factor for the long-suffering franchise, it’s the second time in recent history the Coyotes have changed hands. They were sold to their previous ownership group in 2013. Of course, there is also the infamous 2009 bankruptcy that swathe NHL take control of the team.