So, Smith Entertainment Group wanted an expansion team, but with the NHLPA and NHL not getting an answer from Alex Meruelo on when an arena would be built. That is when the NHL decided to have Meruelo sell the hockey operations and players to Ryan Smith (SEG), with Meruelo keeping the Coyotes intellectual property (name and history), the AHL team and a 5 year exclusive window to bring back the Coyotes. The NHL treated the Utah move as an expansion team just without the draft. Meruelo who could have had this all started if he worked with ASU on the old golf course across from Tempe Market place or with the Salt River Pima-Maricopa Indian Community (they own Talking Stick Resort and everything along the 101 north of the Salt River to North Scottsdale). He won't work with ASU because he can't have a sportsbook there and with the tribe, he can't have the housing and sports book on their land. With the land they were trying to get in the auction it had to be rezoned which was brought up by the PHNX Coyotes guys in May saying, "there needs to be a special use permit for an arena." The original plan for that land was to build a hockey (and basketball or volleyball) complex that would have an arena around 3,000 to 7,000 seats. He wants to get the area to be a "Theme Park" district, so he doesn't have to pay taxes and the Pheonix Mayor said no. Alex Meruelo is basically an incompetent owner who just blames everyone for not being prepared from the Tempe vote to not having a lawyer who specializes in rezoning. Oh, he still hasn't started the arena he was going to build for the University of Nevada.
Edit: I also forgot to mention that Meruelo has until December 2027 to let the NHL know he is bringing the team back and not really 5 years. So, he has to have a half-built arena, pay the $1 billion to activate the team, and give 18 months' notice to the NHL.