I think because the League owns the Coyotes, they'll want to maximize the value they get from the sale, so a bidding war between Seattle and Quebec City (and Kansas City and/or Houston, or anyone else) would be in the League's best interest. It would also allow them to find out if there is enough interest in a possible expansion.
The biggest hurdle for Seattle right now will be where to play for what would likely be at least 3 seasons before the new building is opened. The Key Arena has a capacity of about 10,000 for hockey and a number of those seats have obscured views of the ice. The arena in Everett where the Silvertips play has a capacity of about 8,500, but it's designed for hockey, so they would all be good seats. The problem is that Everett is 30 miles from where the new arena would be, where Key Arena is only on the north side of downtown Seattle.
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