DALLAS – These two Dallas sports teams have pitted themselves against each other.
Both teams share a home here, but it looks like their home life isn’t that great after the Dallas Mavericks filed a lawsuit against the Dallas Stars on Tuesday.
Mavs breach of contract claim
What we know:
It’s the Dallas Mavericks vs the Dallas Stars, but this game isn’t being played in the arena. It’s being fought in court.Â
The two teams have shared the American Airlines Center since it opened in 2001. Each owns half of the companies that run the arena, splitting revenue from concerts, games, and events.
In a new lawsuit filed in Texas business court, the Mavericks say the Stars breached the contract when the team moved its headquarters to Frisco. The Mavericks say the breach allowed them to buy the Stars out last October, making the Mavs sole owners of the arena companies.
The Stars move to the Frisco headquarters, which happened back in 2003.
The Mavericks’ lawsuit shows the team took steps to enforce the contract last October, after the Mavs say the Stars backed out of needed renovations at the arena. The Mavericks say even after buying the Stars out, the Stars have refused to acknowledge the change in control.
Legal expert weighs in
What they’re saying:
Walter Musgrove is an attorney and sports agent, not involved in the case.
“It’s such a new development, it’s kind of hard for us to really say exactly what’s going to happen in the lawsuit,” said Musgrove. “There definitely were some grounds that the Mavs were believed entitled to them to acquire those shares of that type of control for what we all would consider to be a fairly small amount of money.”
City of Dallas takes a stand
The Mavericks say the Stars are “holding the arena hostage” and now the City of Dallas is siding with the Mavericks.Â
“The Mavericks are saying, ‘Hey, like you, by your alleged failure to participate in ensuring the cost of responsibilities for the needed renovations, you are putting us in jeopardy, because now we have to spend more money and carrying out work below for these much-needed renovations that of a facility that you too participate in,” said Musgrove. “The city of Dallas, of course, has an interest to have these two major sports teams conduct their business in the city of Dallas, because, of course, that brings jobs, revenue to the city, revenue to the other businesses that are around the arena. So, they definitely have an interest in ensuring that both those teams remain here in Dallas and host their games as well as their headquarters here in the city.”
In a letter earlier this month cited in the lawsuit, the city formally declared the stars in breach of their franchise agreement for moving their headquarters out of Dallas.
What’s next:
FOX 4 did reach out to the Stars to try and get their side of the story, but they did not get back to us in time for this report. Both teams’ leases to continue playing in the AAC are up in 2031.Â
Both teams have indicated they are looking for a new home.
The Source: Information in this article was provided by FOX 4’s Vania Castillo.