The NHL announced on Thursday that the Arizona Coyotes will relocate to Salt Lake City, Utah. The announcement came after a vote of approval from the NHL’s Board of Governors on Thursday.

Smith Entertainment Group, which owns the Utah Jazz and co-owns Real Salt Lake, will own the new NHL team.

The team will begin operation this coming hockey season. Unlike other situations in which NHL teams have moved cities, the Coyotes will be an “inactive” franchise, meaning that they will be able to return and reassume their name, logo and more.

The new team will be classified as a new franchise but will buy the contracts of all Coyotes players, coaching staff and management. It will also receive all of the Coyotes’ draft picks.

Former Coyotes owner Alex Meruelo will get the chance to buy another NHL franchise within the next few years, provided he accomplishes a number of required tasks by the appropriate deadlines. If successful, he will be awarded an expansion franchise for the exact price at which he sold the Coyotes.

Meruelo’s main task is to build an arena suitable for NHL games. The NHL is giving him five years to get the arena built and operational. Meruelo plans to buy a parcel of land on the north side of Phoenix which goes up for public auction on June 27. If his bid is successful, he could build an arena there and have it ready to go as early as 2027.

Delta Center, the home of the Utah Jazz, will play host to the new team while Smith Entertainment Group builds a new arena. Delta Center holds 10,400 people for hockey — less than the typical 18,000 hosted by most NHL arenas but more than double the capacity of Mullett Arena, where the Coyotes played the last two seasons.