{"id":339053,"date":"2025-10-28T19:34:11","date_gmt":"2025-10-28T19:34:11","guid":{"rendered":"https:\/\/www.europesays.com\/us\/339053\/"},"modified":"2025-10-28T19:34:11","modified_gmt":"2025-10-28T19:34:11","slug":"mavericks-seek-legal-ruling-against-stars-as-ongoing-arena-feud-reaches-boiling-point","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/339053\/","title":{"rendered":"Mavericks seek legal ruling against Stars as ongoing arena feud reaches boiling point"},"content":{"rendered":"

A yearlong breakdown in the Mavericks\u2019 and Stars\u2019 relationship<\/a> came to a head Tuesday morning, when Dallas\u2019 NBA franchise filed suit against the city\u2019s NHL team.<\/p>\n

The teams have had uneven starts to their 25th seasons as American Airlines Center\u2019s tenant couple, but their court and ice struggles appear benign compared to the behind-the-scenes strife in the organizations\u2019 relationship.<\/a><\/p>\n

Late Tuesday morning, Mavericks ownership filed in Texas Business Court a 253-page petition for injunctive relief against Stars\u2019 ownership, seeking legal finality on a breach of contract dispute the Mavericks raised in October 2024.<\/p>\n

The Mavericks allege the Stars are in breach of a clause in their 1998 franchise agreement that requires their corporate headquarters to be located within the city of Dallas, while also claiming in the injunction that the Stars have obstructed further maintenance and improvements to American Airlines Center.<\/a> The Stars\u2019 headquarters and practice facility have been located in Frisco since 2003.<\/p>\n

Mavericks<\/p>\n

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Both the Stars and Mavericks, who have shared the arena since it opened in 2001, could leave AAC after the current lease ends in 2031, with the Mavericks seeking to build a new basketball-only arena in the city of Dallas<\/a> and the Stars entertaining offers from other cities, including Plano and Frisco.<\/a><\/p>\n

The Mavericks first raised awareness of the clause over a year ago, a few weeks before the Mavericks and the city say the Stars backed out of a $300 million deal to renovate AAC, according to interviews and documents obtained by The Dallas Morning News. <\/p>\n

In the deal, according to the city and the Mavericks, the Stars agreed to remain in AAC through 2061 and would have paid no renovation costs, with the city and Mavericks footing the bill, 50-50.<\/p>\n

The Stars strongly deny they agreed to the deal and say had it gone through, half of the renovation costs would have been shared by the Mavericks and Stars. The Stars maintain they agreed to a different deal that would extend the existing lease with both teams staying at AAC through 2035.<\/p>\n

\u201cThe partnership would support it,\u201d Stars President and CEO Brad Alberts told The News in an interview Tuesday. \u201cWe never asked to not be included in helping pay for this. That\u2019s untrue. We never had any intention of the Mavs and city doing it for us. We\u2019re not asking for charity. We were always on board with our 50% of that.\u201d<\/p>\n

The Stars declined to comment on the legal filing.<\/p>\n

The Mavericks seek legal confirmation as the sole owners of the \u201cArena entities.\u201d<\/p>\n

\u201cTo put it plainly,\u201d the injunction states, \u201cthe Stars are holding the American Airlines Center hostage.\u201d<\/p>\n

\u201cThe success of the Mavericks and Stars is important to fans across the Metroplex, and the outcome of this litigation will not impact either team from playing at the American Airlines Center now, or through the end of the current team leases in 2031,\u201d the Mavericks said in an emailed statement after the injunction was filed.<\/p>\n

\u201cFans of both franchises should have every expectation that the experience of coming to support their teams will continue as it always has.\u201d<\/p>\n

Days after last year\u2019s deal collapsed, the Mavericks on Oct. 25, 2024, cited the breach of contract and seized the Stars\u2019 half of AAC\u2019s operating company. <\/p>\n

The City of Dallas sided with the Mavericks, affirming the contract breach, both last October and in December, when city attorneys prepared a default letter to the Stars. <\/p>\n

For the past year, the Mavericks have withheld the Stars\u2019 quarterly arena proceeds and kept them in escrow. The Stars say the amount escrowed is \u201cin the tens of millions.\u201d<\/p>\n

Change of course<\/p>\n

One city document describes 10 months of enthusiastic and lockstep planning preceding last October\u2019s AAC alleged agreement, but the Stars say they largely were kept in the dark while Dallas and the Mavericks planned. Nowadays, Dallas\u2019 NBA and NHL franchises primarily communicate through attorneys.<\/p>\n

Records also show that Dallas Mayor Eric Johnson, City Manager Kimberly Bizor Tolbert and other city officials have tried to re-engage the Stars in negotiation about AAC, while at the same time collaborating with the Mavericks about a new downtown basketball-specific arena as part of an entertainment district.<\/p>\n

Just four weeks ago, in an Oct. 3 letter to Stars owner Tom Gaglardi, Tolbert recapped the Stars\u2019 \u201cbaffling change of course\u201d and ensuing fallout, including the team\u2019s months of mostly silence before, on Sept. 9, upping their AAC improvements request to at least $400 million to $500 million.<\/p>\n

Tolbert reiterated the Stars\u2019 importance to Dallas and implored Gaglardi to personally return to the negotiating table. She also officially notified him that the Stars did breach a clause in their 1998 franchise agreement, signed after voters approved funding for AAC\u2019s construction.<\/p>\n

Four days after Tolbert\u2019s letter, the Mavericks referred to Tolbert\u2019s breach notice as legal reinforcement of their action last October, when they cited the breach and sent $110 in federal reserve notes to purchase the Stars\u2019 half of Center Operating Company, which manages AAC.<\/p>\n

Since then, the Stars\u2019 monthly Center Operating Company revenue payments have been held in escrow with Chicago Title Company.<\/p>\n

In their Oct. 7 letter to the Stars, emailed and overnighted by courier from the law firm Jackson Walker LLP, \u201cDallas Sports Group LLC and Radical Arena, Ltd. (collectively, the Dallas Mavericks)\u201d reminded them there is a legal remedy to retrieve the funds.<\/p>\n

\u201cWe would appreciate your confirmation that the Stars\u2019 interest in Center Operating Company and its General Partner have been acquired by the Dallas Mavericks at your earliest convenience,\u201d the letter states.<\/p>\n

\u201cThe Dallas Mavericks look forward to discussing the path forward with the Stars and the City later this month per the City\u2019s request.\u201d<\/p>\n

It\u2019s unclear how or if the Stars\u2019 law firm replied to the Oct. 3 and Oct. 7 letters, but Tolbert\u2019s letter wasn\u2019t the only Stars-related occurrence that day.<\/p>\n

A Stars relocation?<\/p>\n

A news report emerged that the Stars were eying Plano as a potential destination for a new arena. The Stars say that minutes after that report, Tolbert\u2019s letter arrived in Gaglardi\u2019s email inbox.<\/p>\n

That evening, Alberts told The News the Stars also were engaged in discussion with Frisco, The Colony, Arlington and Fort Worth.<\/p>\n

The Stars haven\u2019t ruled out remaining in AAC past the teams\u2019 July 2031 lease expiration, Alberts told The News, but he also said:<\/p>\n

\u201cCreating 365-day revenue, I feel, is essential to the health of sports and entertainment businesses, especially NHL businesses that depend on local revenue far more than others.<\/p>\n

\u201cI think the biggest problem that we have with staying in Dallas is that we don\u2019t have that. We don\u2019t control any of the real estate outside of the building. We\u2019re looking for that opportunity that can create 365-day-a-year revenue outside and also have an incredible in-venue, in-arena experience.\u201d<\/p>\n

Postponed renovations<\/p>\n

Viewed through a broader lens, it\u2019s no surprise the Mavericks and Stars are at odds.<\/p>\n

They have shared a venue since 1993, when the Stars franchise moved from Minneapolis and joined the Mavericks in Reunion Arena, but former Mavericks governor Mark Cuban began voicing plans for a new arena more than a decade ago.<\/p>\n

For much of that decade, the Stars consistently stated a desire to greatly refurbish AAC and for both franchises to remain there beyond their current lease agreement, which expires in July 2031.<\/p>\n

Despite their differences, through their 50-50 partnership in Center Operating Company, the Stars and Mavericks collaborated to fund a combined $100 million in improvements to AAC, which opened in 2001 at a cost of $420 million.<\/p>\n

In late September 2023, the Mavericks, Stars and AAC general manager Dave Brown proudly unveiled new scoreboards and 19,134 new seats among $20 million in upgrades, the largest round of capital improvements in the arena\u2019s history.<\/p>\n

Alberts told The News then that more enhancements were needed, including better concession offerings, upgrades to premium hospitality spaces \u2013 and, logistically, new routing for foot traffic from parking garages.<\/p>\n

\u201cObviously, this goes to where us and Mark [Cuban] have had some disagreements on where we go with the arena,\u201d Alberts said.<\/p>\n

Three months later, Cuban sold his controlling interest in the Mavericks to the Miriam Adelson and Patrick Dumont families. Alberts was elated, telling The News in a text message he\u2019d long known and respected Adelson, Dumont and the hospitality prowess of their company, Las Vegas Sands.<\/p>\n

When Dumont flew to Dallas on Feb. 12, 2024, for his first in-person game as team governor, the first person with whom he met in AAC was Alberts, for 30 minutes. Both told The News of a shared vision to significantly upgrade AAC, regardless of whether the Mavericks built a new arena.<\/p>\n

On Sept. 16, 2024, Center Operating Company filed for state licensing for a $30 million project for elevator and escalator modernization and extensive slab work to improve \u201cpatron circulation.\u201d<\/p>\n

That work was scheduled to begin the following month, but it\u2019s twice been postponed, most recently to the summer of 2026.<\/p>\n

Timeline of events<\/p>\n

Documents obtained by The News provide context and clarity to a scene in AAC\u2019s Jack Daniels Club on Oct 11, 2024.<\/p>\n

Amid aromas of pizza, barbecue and cheesesteak, AAC general manager Brown, Alberts and then-Mavericks CEO Cynt Marshall took turns extolling the cuisine at an unveiling of the arena\u2019s new food offerings.<\/p>\n

The trio seemed especially upbeat \u2013 giddy \u2013 even though Marshall three days earlier had announced she would retire at year\u2019s end.<\/p>\n

\u201cWe have incredible partners,\u201d Marshall said. \u201cWe have one of the top venues in the country and now we\u2019re making it even better.\u201d<\/p>\n

Extra-prophetic, or so Marshall probably thought. Three days earlier, the City of Dallas and Mavericks believed all sides had verbally agreed to the $300 million renovation plan, documents show.<\/p>\n

During that meeting, according to Tolbert\u2019s Oct. 3 letter, Alberts apologized for the Stars moving their headquarters to Frisco 16 years earlier, saying the franchise was unaware of the lease breach and would commit to returning to Dallas by December 2025. Alberts told The News Tuesday that the Stars opened an office in Dallas last fall to comply.<\/p>\n

On Oct. 4, the City of Dallas finalized the proposed agreement and shared it with the Mavericks and Stars. Alberts told The News on Tuesday that that was the first he had seen of proposed terms since an August meeting.<\/p>\n

On Oct. 9, the AAC renovation plan by Gensler Dallas was reviewed by Center Operating Company, Alberts, Stars Chief Revenue Officer Matt Bowman and Mark Boekenheide, who was representing Mavericks ownership. On the 10th, the City of Dallas finalized the agreement document.<\/p>\n

\u201cI believed we had finalized deal terms,\u201d Tolbert wrote in her letter to Gaglardi three weeks ago. \u201cThe Stars had no financial obligation.<\/p>\n

\u201cIn exchange for the City of Dallas and Mavericks investment, the draft term sheet included, with Brad\u2019s concurrence, the Stars would play all home games at the AAC through 2061 and build and operate a StarsCenter multisport arena in southern Dallas to be supported by up to $50 million from the City of Dallas.<\/p>\n

\u201cThe Dallas Mavericks would stay at the AAC through 2031 and then move into a newly constructed NBA arena.\u201d<\/p>\n

Alberts told The News that characterization is false.<\/p>\n

\u201cWe didn\u2019t agree to anything,\u201d he said. \u201cWe had not talked to ownership. I had not talked to legal counsel about it. I had not even reviewed it with my executive team. That was the first full meeting I\u2019ve ever had with the city and the Mavericks to discuss the terms of the deal. We needed time to dot the I\u2019s and cross the T\u2019s and that\u2019s all we asked for.\u201d<\/p>\n

Alberts said on Aug. 20, he approved terms that were being discussed at the time: That the Stars and Mavericks and city would extend the AAC lease agreement through 2035-36 and that the Mavericks and Stars would work through details of the renovation.<\/p>\n

He said the Mavericks were responsible for taking the terms to the city on behalf of Center Operating Company, and he was not present in the negotiations that happened.<\/p>\n

\u201cAt no time did anyone communicate with me that those terms had changed until I received an initial term sheet on Oct. 4 and then met with the city and the Mavericks on Oct. 8 and saw that we were being asked to stay until 2061 and the Mavericks were allowed to leave in 2031,\u201d he said. \u201cThat created issues for us.\u201d<\/p>\n

Tolbert\u2019s October letter further states that she, Alberts and Marshall had agreed to hold a specially called City Council meeting on Oct. 24, 2024.<\/p>\n

\u201cWe also planned a public announcement event to be held at the Mavericks season opener later that day,\u201d she wrote. \u201cEveryone walked out of that room in lockstep \u2014 the deal terms gave everyone what they claimed to want.\u201d<\/p>\n

She added in bold-face: \u201cThe Stars would receive a renovated arena and a long-term home in Dallas with no financial commitment.\u201d<\/p>\n

Tolbert\u2019s letter and timeline of events state that on Oct. 14, 2024, Alberts alerted Dallas assistant city manager Robin Bentley that the deal was off and that during a phone call with Dumont the following day, \u201cBrad blew up on PD; the root of the blowup was that the Stars want to stay connected to the Mavs indefinitely.\u201d<\/p>\n

Six days later, according to the timeline, Alberts indicated that the Stars would extend their AAC lease agreement to 2035 if the Mavericks also did so.<\/p>\n

On Oct. 25, 2024, the Mavericks sent the $110 check and informed the Stars that in light of the 2003 lease breach, they were exercising their contractual right to purchase the Stars\u2019 interest in Center Operating Company.<\/p>\n

The Stars\u2019 franchise agreement with the City of Dallas is dated July 28, 1998, but the 30-year lease term did not begin until the arena opened.<\/p>\n

Article II of the agreement is titled \u201cLocation and Other Team Obligations.\u201d<\/p>\n

Section 2.1 states in part: \u201cThroughout the Term, the Owner shall continuously designate the City as the location (a) in which the Home Games shall be played, and (b) in which the principal corporate and executive offices of the Team shall be maintained.\u201d<\/p>\n

Why now?<\/p>\n

The Mavericks\u2019 1998 franchise agreement with the city has the same wording.<\/p>\n

Frank Zaccanelli, the Mavericks president under then-team governor Ross Perot Jr., recalls negotiating all of the team\u2019s AAC-related documents.<\/p>\n

Zaccanelli, 70, says the franchise agreement provisions largely were to protect those who purchased $140 million in revenue bonds that funded the city\u2019s $125 million contribution to the arena\u2019s construction cost. <\/p>\n

Ostensibly, the \u201clocation commitment\u201d also protected Dallas from loss of revenue and prestige if the Stars or Mavericks moved their headquarters.<\/p>\n

Tolbert\u2019s timeline states that when the Mavericks and Stars last October informed the city of the Mavericks\u2019 breach claim, city staff confirmed the Stars never received a waiver or contract provision. Not explained is why apparently no one from the city noticed the Stars\u2019 breach in 2003.<\/p>\n

\u201cWe don\u2019t understand why this is an issue now,\u201d Alberts said. \u201cIt hasn\u2019t been an issue for 20 years. We all know that the headquarters has been in Frisco. At the same time, we responded a year ago and made a change and developed an executive office in Dallas, and we\u2019re continuing to expand that now so we have a presence in Dallas. We don\u2019t understand why that is an issue. It never was for 25 years.\u201d<\/p>\n

Also notable is that the Mavericks did not enact their right to take 100% ownership of Center Operating Company until after the Oct. 8 deal fell through. Regardless, Tolbert made it clear in her Oct. 3 letter that a deal is salvageable \u2013 and wanted by Dallas.<\/p>\n

\u201cSince the Stars walked away \u2026 the City of Dallas has continued to work to revive the proposed deal, reengage in conversations and get the Stars back to the table.\u201d <\/p>\n

On April 11 of this year, Mayor Johnson hosted a meeting with Gaglardi and Dumont during which \u201cthe Mavs asked the Stars to convey what they wanted\u201d and \u201cthe Stars never responded.\u201d<\/p>\n

Tolbert\u2019s timeline states that Dumont and Gaglardi again spoke, by phone, on May 15 without resolution or clear asks from the Stars.<\/p>\n

It wasn\u2019t until Sept. 9, Tolbert wrote, that Alberts \u201csent an unofficial list of the Stars\u2019 requirements out of respect for my requests. I appreciate that Brad was clear in our conversation that the list is only a starting point for discussion.\u201d<\/p>\n

Then she addressed Alberts\u2019 requests, one by one, including.<\/p>\n

\u2013 The Stars asked the Mavericks to resolve the breach dispute and distribute the escrowed AAC revenue. Tolbert wrote that the city is not party to the Mavericks-Stars partnership or legal dispute and that the teams must resolve that on their own.<\/p>\n

\u2013 The Stars asked Dallas to fund $400 million to $500 million in AAC renovations without financial obligation from the team. Alberts also asked Dallas to fund all future capital expenses to maintain AAC.<\/p>\n

\u201cIt is unclear to me how this new inflated renovation budget was developed,\u201d Tolbert wrote. \u201cUnlike our October 2024 proposed deal terms, the Stars\u2019 new request has no cost sharing or contribution by AAC tenants or management . . . This request is beyond unreasonable.\u201d<\/p>\n

\u2013 The Stars requested that Dallas waive all AAC rent, which is $3.4 million annually, evenly split between the teams, the same terms as the past 24 years. Tolbert noted the October 2024 proposed deal was for an inflation-adjusted $6.6 million annually.<\/p>\n

\u201cIt is unreasonable to expect the City of Dallas to allow use of a city-owned facility for free,\u201d she wrote. \u201cGifts of taxpayer funds or public facilities are not allowed under state law.\u201d<\/p>\n

Nonetheless, Tolbert was optimistic they could \u201cfind a path forward that honors our shared vision and long-standing relationship,\u201d she wrote, adding that the Stars are deeply woven into Dallas\u2019 fabric.<\/p>\n

\u201cA move away from the AAC would not only disrupt a successful and enduring relationship, but it would also abandon a fan base and community that has embraced and uplifted this team for over three decades.\u201d<\/p>\n

What\u2019s next for AAC?<\/p>\n

Fans certainly should be a paramount consideration by all \u2013 Mavericks, Stars and the city. So should AAC.<\/p>\n

It has aged more gracefully than most NBA and NHL venues of its generation, but it\u2019s 24 years old. And both of its tenants admittedly have wandering eyes.<\/p>\n

Moreover, these housemates of 32 years have all but stopped speaking, yet are obligated by lease to cohabitate six more years. <\/p>\n

Even if they make up, who will pay for the needs and modernization both franchises say fans deserve? <\/p>\n

Documents show the Mavericks and City of Dallas are willing to commit $150 million apiece, but what would be their incentive to invest without commitment from the Stars, especially as the calendar creeps closer to 2031?<\/p>\n

When city officials and the Mavericks believed they had a deal with the Stars last October, the planned first steps in AAC renovation included $75 million in \u201cneeded in deferred maintenance and necessary repairs\u201d and to address \u201cimmediate safety needs.\u201d<\/p>\n

The city document states that Mavericks still are willing to address those $75 million needs according to documents; the Stars are not. However, Alberts emphasized to The News that the Stars have no issue helping to fund and make necessary repairs to AAC.<\/p>\n

\u201cWe\u2019ve maintained this building privately financed since its inception,\u201d he said. \u201cI mean, the city has not put any money into this building to date. We will continue to fix what needs to be fixed and continue to operate this building at an NHL, NBA level. I have all the confidence in the world of that.\u201d<\/p>\n

And what about the teams\u2019 ability to coexist and function in AAC for the last six years of the lease agreement?<\/p>\n

\u201cYour question about being able to work with them: well, we\u2019re doing it now,\u201d he said. \u201cAgain, we\u2019re not the enemy of the Mavs. We have no desire to fight with them. We want to run a good business. We want them to be successful here.<\/p>\n

\u201cWe want them to provide a good fan experience for their fans. We want their players to play well. We want the same thing for us. So I think it\u2019s pretty simple.\u201d<\/p>\n

The alleged October 2024 agreement on the $300 million refurbishment plan was preceded by four months of planning, the Stars, Mavericks and city officials in tandem.<\/p>\n

Other refurbished arenas around the country were toured. Architecture renderings were commissioned. That $30 million in escalator and elevator work that\u2019s been postponed to next summer? That is spent money, albeit with Center Operating Company funds, not public dollars. <\/p>\n

The broader plans included covered pedestrian bridges connecting the Gold and Lexus garages to AAC, for improved auto and pedestrian ingress and egress.<\/p>\n

Much of the city\u2019s $150 million portion would have gone toward \u201cbase building system upgrades\/replacement and end of lifespan of systems.\u201d In short, modernizing and in theory adding years of life to the arena.<\/p>\n

\u201cWith this $300 million investment, we will still be able to make renovations that will significantly improve the fan experience, ensuring that the AAC remains a top entertainment venue,\u201d states a document appendix, dated Aug. 30, 2024.<\/p>\n

Can those plans be revived? Can the Mavericks and Stars make up? Or is this estrangement a natural, albeit volatile step toward inevitable divorce?<\/p>\n

Related<\/p>\n

\"No.<\/p>\n","protected":false},"excerpt":{"rendered":"A yearlong breakdown in the Mavericks\u2019 and Stars\u2019 relationship came to a head Tuesday morning, when Dallas\u2019 NBA…\n","protected":false},"author":3,"featured_media":339054,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[3139,1320,6650,293,62,67,132,68],"class_list":{"0":"post-339053","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-nhl","8":"tag-dallas-mavericks","9":"tag-dallas-stars","10":"tag-mavericks","11":"tag-nhl","12":"tag-sports","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115453471849160485","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/339053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=339053"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/339053\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/339054"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=339053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=339053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=339053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}