Bulls of the Week
The acquisition of the young player roster and hockey operations assets of the Arizona Coyotes for US$1.2 billion has made it a winning week for pro sport in Salt Lake City and Utah in general.
However, this is just the beginning of a positive market for sports fans in Utah. The state already has the Jazz of the NBA, Real Salt Lake of MLS, and hosted the 2002 Winter Olympic and Paralympic Games.
At the center of it all are Qualtrics billionaire Ryan Smith and his wife Ashley Smith, who bought the Jazz for US$1.66 billion in 2020 and also have a minority stake in the MLS franchise.
In the near future, there is a strong bid for MLB expansion from the Larry Miller Company and Salt Lake City is likely to have IOC-preferred hosting status in 2034.
Within 10 years, the city and the state will have one of the strongest sports business infrastructures in North America, making it much more than the relatively small urban market of 1.2 million that it is today (the larger metro area is 2.7 million). Despite being only the 124th largest city in the U.S., it is considered a top-10 center of American influence, leadership and philanthropy.
The NHL is in a better position in Salt Lake City than it was in Tempe, Ariz. despite a projected wait of another couple of years before the seating capacity for hockey at the Delta Center grows from 12,000 to 17,000.
Although the IOC and politicians may say otherwise, any arena upgrades that do not happen by 2026-27 will likely occur in conjunction with the hosting of Salt Lake 2034. With strong contending men’s and women’s Olympic hockey teams from the U.S., they would be wise to stage the competition at the larger Delta Center rather than the 12,000-seat Maverik Center that hosted hockey in 2002.
Bears of the Week
The big question: What did polarizing Coyotes owner Alex Meruelo do to justify such a windfall (a US$1 billion net sales price) and soft landing (the rights to reactivate the franchise if he successfully builds an NHL-calibre arena within five years)?
He brings very little pro sport experience, political weight and community support. Wouldn’t the league want that to get it right in Greater Phoenix after a half-dozen false starts in ownership over the past 27 years?
Meruelo bought the Coyotes for US$300 million in 2019.
Before the 2023-24 NHL season, his Coyotes were valued at just US$500 million, dead last among 32 franchises in the league.
Yet he is selling at a premium price, more than three times what he paid for the team five years ago.
Greater Phoenix deserves a chance to promote hockey on the east end of town that is populated heavily by snowbirds. And the Coyotes’ most recent plan to purchase land in northeast Phoenix is the most demographically friendly proposal they’ve ever come up with.
Yet is Meruelo the individual to make it happen? If he is unable to even be present at his team’s final game at Mullett on Wednesday, can he put in the effort needed to create a successful situation for NHL hockey in that market?
Tom Mayenknecht hosts The Sport Market on Sportsnet 650 on Saturdays from 9 a.m. to 1 p.m. The Vancouver-based sports business commentator and principal in Emblematica Brand Builders offers an inside look at the sports business stories that are most important to fans. Follow Mayenknecht at: twitter.com/TheSportMarket.
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