The NHL announced it will be shutting down its team in Las Vegas next year.
The NHL, which has operated the Vegas Metro since the 1960s, will sell the team’s lease at the MGM Grand to a private ownership group.
The league said it will not play a game there during the first half of 2019.
The owners have yet to reveal a site for the new arena.
“We are making the difficult decision to close the NHL’s Metro team and to relocate the majority of the teams operations to other markets,” commissioner Gary Bettman said in a statement.
“It is time for a fresh start and we will be following this closely to ensure we continue to be a premier league.”
A new NHL team will take its place in the desert.
The Las Vegas Strip is the largest shopping and entertainment destination in the U.S.
The decision is the latest in a series of moves by the league to try to cut costs and make itself more attractive to investors and fans.
The move comes on the heels of the departure of the NHLPA and the NFL’s owners, who have struggled to make significant inroads with the sport.
The move was made official Monday by NHL Deputy Commissioner Bill Daly.
It follows months of talks between the NHL and the Las Vegas team owners, which included the team taking a $3.8 billion writedown on the Vegas lease.
It is unclear how much of the $3 billion would be spent on new facilities.
The Las Vegas deal will also include $300 million to fund the relocation of the Coyotes to Phoenix.
The deal includes a provision allowing the NHL to relocate its game from downtown Las Vegas to the University of Nevada Las Vegas.
The NHL and Las Vegas officials had hoped to begin moving games in the summer of 2019, but those talks collapsed.
The Coyotes played a season in Las Vega, and the move to Phoenix has raised questions about the viability of that location for the league.
The relocation of a team to Vegas has long been a concern for the NHL, especially after the team was sold to the Arizona Coyotes in 2008 for $1.4 billion.