Weird scenario. Effectively it’s an expansion franchise without an expansion fee. Coyotes join a short list of NHL teams to achieve “inactive franchise” status. The NHL receives $1B from Utah in exchange for the Arizona roster and front office, and passes the money along to Arizona/Meruelo. If Meruelo ready in 5 years, he can return the $1B to the league and re-activate his franchise. Which presumably would be stocked by an expansion draft, even though it’s not an expansion scenario by that time. All the previous team records stay in Arizona.
The whole thing is oddly out of sync with how we’re used to thinking of these things. The “team” (roster and front office) is treated as a completely distinct asset from the franchise, except where team records are concerned. Utah is technically an expansion franchise, even though the team has existed for years. Future Arizona is technically not an expansion franchise, even though they will be a new team and need to be re-stocked by a draft. Meruelo breaks even and gets a new team even though he never lost his franchise. Smith gets an established team even though he’s getting an expansion franchise. The NHL gets $1B for creating a team, but not from the owners of that team, and not any time soon.