The Arizona Coyotes’ owner Alex Meruelo was set to reactivate the team as an NHL franchise, but according to various reports Tuesday morning, he is now calling it quits.

Multiple sources told PHNX Sports that ownership addressed Coyotes staff on Monday, telling them that they no longer had plans to pursue further arena options. The decision follows news that Arizona cancelled a planned auction of a piece of state land on Thursday. Meruelo was interested in purchasing the 110-acre land, previously appraised for $68.5 million.

The sudden cancellation of the auction shifted Meruelo’s plans, and the team noted the action “seriously jeopardizes the future of NHL hockey returning to the desert” and “the state is forgoing millions, and potentially billions of dollars that would have gone directly to K-12 education.”

Meruelo previously sold everything but the team’s name to Utah Jazz owner Ryan Smith as a part of a $1.2 billion deal in April. The sale included the provision that Meruelo had nontransferable rights to reactive the franchise if he was able to build an arena for the team within five years.

With Meruelo’s reported departure, the idea of an NHL team in Arizona is up-in-the-air. However, PHNX reports that two groups are interested in bringing an expansion team back to the state.

This is a developing story.