Report shows dysfunction, fear and financial issues within Coyotes organization

If you've followed hockey even remotely over the last couple of years you're likely aware, or have at least heard of issues with the Arizona Coyotes. Just over the last 12 months or so, the Coyotes had issues paying their arena lease, there was the whole situation with prospect Mitch Miller and the firing of now former GM John Chayka. The team's financial struggles certainly aren't a secret as hockey in the desert can be a hard sell. That said, a new report by Katie Strang of The Athletic paints a much bleaker picture for the team, one where employees are unhappy, vendors claims they aren't getting paid and everyone is walking on eggshells.

Strang's article is based on interviews she did with 50 people, including past and present employees and those who have had business relationship with the Coyotes.

"Those interviews revealed a wide range of concerns that have surfaced since [majority owner Alex] Meruelo took control of the team 18 months ago, including what many have described as a «toxic» workplace environment and financial troubles that far exceed what has previously been disclosed," wrote Strang.

"If I was talking to a future employer, I'd say it's been a learning experience,» said one employee. «If I was being frank with you, I'd say it's a shitshow."

The article quotes unidentified employees as saying Meruelo's ownership group is essentially trying to run a hockey team the way they've run radio stations, pizza joints and casinos.

"The team's relationships with corporate partners, vendors and suppliers eroded as Meruelo Group executives applied what appeared to be a specific strategy: call up the partner, vendor or supplier, and ask that entity to 'work with them,' Strang reported. "This was often the starting point of a process in which Meruelo's associates would haggle over line items in invoices or portions of a contract; it was also not uncommon for Meruelo associates to use the threat of litigation as leverage to get out of paying outstanding invoices or to make payments at drastically reduced costs. Over the course of reporting this story, The Athletic identified and spoke with eight vendors with whom the Coyotes had outstanding or past due balances or negotiated their debt to a lower amount."

«They default on a bill and then chisel you down to what you accept and then they pay you,» said one vendor.

No one from the NHL or the Arizona Coyotes would offer comment on Strang's article. Strang pointed out that when new GM Bill Armstrong took over in September, he was asked about a pair of front office employees who worked under Chayka and were still employed by the Coyotes. Armstrong indicated they would remain but the two were later let go, something that was revealed to The Athletic and, apparently, did not make Armstrong very happy.

"In November, agitated that organizational information had been obtained by The Athletic, Armstrong contacted this reporter, offering a theory that his daily schedule and other files had been stolen from his computer. He warned that the person who he surmised was responsible would be going to jail. After delivering a lecture on journalism ethics, Armstrong asked this reporter what she thought would happen if he were to tell general managers around the league how she did her job," said Strang.

The article, which you can read in its entirety using the link below, is just packed with incidents of dysfunction within the organization. Steve Sullivan, who served as an assistant GM with the team for a number of years and took over as interim GM between the time Chayka was fired and Armstrong was hired, recently had his contract terminated by the team. No reason was given for his dismissal. His lawyer told The Athletic Sullivan intends to take his case to commissioner Gary Bettman's office for arbitration as Sullivan believes his contract was breached. The list just goes on and on.

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