Glendale informs Coyotes 2021-22 season will be last in Gila River Arena

The Arizona Coyotes will need to find a new home after the 2021-22 season.

The city of Glendale announced that it informed the Coyotes it won't renew the operating agreement for the city-owned Gila River Arena, and the team will need to vacate the facility at the end of the upcoming campaign.

"We are disappointed by today's unilateral decision by the City of Glendale to break off negotiations on a multi-year lease extension agreement. We are hopeful that they will reconsider a move that would primarily damage the small businesses and hard-working citizens of Glendale. We remain open to restarting good-faith negotiations with the city," Coyotes president Xavier Gutierrez said in a statement issued by the team.

"Most importantly, the Coyotes are 100% committed to finding a long-term arena solution here in Arizona, and nothing will shake our determination to do what is right for our organization, residents of the entire Valley, and, most important, our fans."

The city and team were negotiating the terms of a lease extension and potential arena renovations over the last few months before talks stalled, reports The Athletic's Katie Strang. The club was also reportedly given multiple notices about outstanding balances owed.

"We've reached that point of no return," city manager Kevin Phelps told The Athletic. "There's no wavering.

"Last year, due to the pandemic, we agreed to forgo a significant amount of the money owed to the arena," he added. "In doing so, the Coyotes agreed they would keep current with all future financial obligations under their lease agreement. That has not occurred."

Glendale wanted a long-term agreement with the Coyotes instead of going on a year-by-year basis, per Strang. In a letter reportedly sent to Gutierrez in November, Phelps said the city was looking for at least a 12-year commitment.

NHL commissioner Gary Bettman said on WFAN 660 AM in New York on Thursday that he doesn't believe the Coyotes will relocate outside of the Phoenix area, per NHL.com.

Coyotes owner Alex Meruelo said he wanted a new arena for the club when he took over the franchise in July 2019. The team is reportedly eying Tempe as a potential location and can submit arena and development proposals to the city by Sept. 2.

The Coyotes have been playing in the Gila River Arena since the 2003-04 season.