Tempe skeptical of Coyotes’ arena plan due to the team’s financial issues

The Arizona Coyotes’ plan to build a new arena in Tempe is on thin ice.

The proposal is a $1.7 billion arena and entertainment district in downtown Tempe, a city just east of Phoenix that’s much more accessible than their current home in Glendale.

According to Craig Morgan of PHNX Sports, the Tempe City Council is skeptical of approving the project due in part to the recent scandal around the Coyotes not paying their bills and taxes. Currently, three members of the council are in favor, two are against it and two are undecided but are leaning toward voting no.

“The Coyotes certainly aren’t doing themselves any favors with the negative news stories,” one source said. “I would imagine if another negative story comes up on (owner Alex) Meruelo or the organization or their business practices, it probably will die. Those stories hurt tremendously.” 

The Coyotes paid off their debts shortly after the story broke and stated that the situation was the result of an “unfortunate human error” on their part.

If the Coyotes aren’t able to get the green light for their arena project in Tempe, it might be the end of hockey in the desert. The City of Glendale has opted out of the joint lease agreement for Gila River Stadium, and the Coyotes will need to find a new home for 2022-23.

There have been rumors that the Coyotes are up for sale with the intention of moving them to Houston, but the organization said that wasn’t the case.