Coyotes' arena deal with ASU includes end clause for poor behavior

The Coyotes and Owner Alex Meruelo will be "required to avoid notoriety" as part of their agreement to play at Arizona State Univ. next season, or the team could "be forced to look for another place to play," according to Shapiro & Strang of THE ATHLETIC. If the Coyotes or Meruelo become the "subject of adverse publicity, contempt, scandal or ridicule for violating 'widely held principles of public morality, failing to conduct its business affairs with a high degree of integrity and honesty and/or failing to act as a good corporate citizen,'" ASU can "get out of its deal" with the team. This includes "media coverage of Meruelo and the Coyotes business practices." ASU also can cancel the Coyotes tenancy if coverage is "proven true and has damaged or could damage ASU’s reputation." Meanwhile, the Coyotes already owns one of the state’s "licenses to run wagering operations," but they will "not be able to run those operations inside ASU’s arena." The team agreed that "any use of the facility or any part of the ASU campus for gaming is prohibited." The lease between ASU and the Coyotes is for three years, with a fourth-year option built in, and the agreement confirms that "base rent will be required annually before the start of each season." Additional rent due will "be calculated each month." The ASU agreement also confirms that "any capital improvements made by the Coyotes, which include an annex for the NHL club’s facilities," will "remain property of Arizona State at the end of the deal" (, 5/17).

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