It's a little more than that.
The "franchise" didn't relocate to Utah, only the players and some staff, etc. This includes minor league assets, prospects, etc. The "Coyotes", as a franchise, has been made dormant by the league, and Alex Meruelo has a five year window to acquire land and get the arena completed.
If current reporting is correct, he has until next April to actually acquire the land he needs, and the arena needs to be at least half finished by 31 December 2027. If it's at that point on or before that date, he can pay back the $1bn to the NHL and start the expansion draft process. If all this happens, the team should resume play in time for the 2029-2030 season, with the actual expansion draft occurring in the summer of 2029.
There's no word yet on what happens to the remains of the Coyotes franchise should Meruelo fail, but if I had to guess, it would go to the league until someone steps up, builds a barn, and pays the $1bn (or more?) to resurrect the Coyotes in Phoenix.