Arizona Coyotes rebuke report critical of team's business practices, organizational culture

A blistering report that criticized the Arizona Coyotes' workplace environment and financial dealings was met with a stinging rebuke by the NHL organization on Tuesday.

The report, which was posted by The Athletic on Tuesday morning, went into detail about the team's financial dealings, workplace culture and a case of alleged sexual harassment, among other matters. It re-visited the drafting of Mitchell Miller last October, which drew widespread criticism because of Miller's bullying and racism in his past. 

The Athletic's report said it contained interviews with more than 50 current and former Coyotes employees, including people with business ties to the team, voicing concerns over majority owner Alex Meruelo and his management style.

The Coyotes issued a statement that said the The Athletic, a leading sports website that goes in depth in its coverage of sports, has condoned a harassment campaign against the organization, including Meruelo and current and ex-employees, for several months.

"We question the potential reliance by The Athletic on disgruntled ex-employees who have proven to be untrustworthy and lacking in candor on confidential non-public information, and on vendors with whom the Club secured negotiated settlements to undo years of financial mismanagement under prior ownership and Club leadership," the Coyotes statement said. “At a time when teams and leagues across sports are facing an unprecedented economic downturn, we are concerned that The Athletic has chosen to single out Mr. Meruelo and the Arizona Coyotes about their financial operations.

The Coyotes, through their statement, cited examples of Meruelo's investment in the improvement of the organization, including the hiring of general manager Bill Armstrong — who won a Stanley Cup as part of the St. Louis Blues' front office — as well as spending to the salary cap. 

"Integrity, honor, and professionalism have been restored to the Coyotes hockey operations, replacing a deceptive and dysfunctional department undeserving of the great fans of Arizona," the statement said, referring to former general manager John Chayka and his regime.

The Coyotes were direct and vitriolic when announcing their parting of ways with Chayka last summer, and they took an aggressive approach with this matter as well. 

“Additionally, The Athletic has completely disregarded the commitment Mr. Meruelo has made to position the Coyotes as a well-respected community leader, as a recognized benefactor of youth hockey, and as a champion of diversity, equity, and inclusion," the Coyotes said. Meruelo brought in Xavier Gutierrez as president and CEO, and Gutierrez has been the business and community face of the club as he has worked to increase its presence in local communities of color.

"Mr. Meruelo has demonstrated a 40-year track record of success in multiple industries and business enterprises. ...  Mr. Meruelo is in very good standing with the National Hockey League, and with each and every one of the regulatory bodies that touch the Meruelo Group family of companies." 

The Coyotes ended their comments saying they will explore legal options in response to The Athletic. 

The story said representatives of a law firm visited with Coyotes employees last month, and have inquired about such matters as the accuracy of financial documents provided to third parties and the accuracy of financial reports the organization sent to the league.

Other topics discussed, per The Athletic article:

• The workplace culture of the organization, including allegations of intimidation and threats made against current and former employees.
• Health policies and procedures, particularly relating to COVID-19 protocols and internal compliance.
• Separation agreements with former employees, including a sales manager who is suing the team for what he alleges are unpaid wages. 

The Athletic reported that over the past several months, employees in hockey operations, finance and administration have left the club, either by resignation or termination.

“You don’t understand the value of culture until you saw it deteriorate," a former employee said in the report.

Get in touch with Jose Romero at Jose.Romero@gannett.com. Find him on Twitter at @RomeroJoseM.