The Dallas Stars filed a counterclaim late Tuesday night against the Dallas Mavericks, seeking to “restore normal operations at the [American Airlines Center] and prevent the Mavericks’ attempted hostile takeover,” according to a statement from Stars’ counsel Joshua M. Sandler.
In the suit, the Stars claim the Mavericks had no legal right to claim the Stars breached their 1998 franchise agreement by locating their corporate headquarters outside of the city of Dallas, and that only the city of Dallas could determine “a relocation event” occurred.
The countersuit comes just 12 hours after the Mavericks ownership filed a 253-page petition for injunctive relief against Stars ownership in Texas Business Court, seeking legal finality on a breach of contract dispute the Mavericks raised in October 2024.
The Mavericks allege the Stars are in breach of a clause in their franchise agreement that requires their corporate headquarters to be located within the city of Dallas. The Stars’ headquarters and practice facility have been located in Frisco since 2003. They also claim in the injunction that the Stars have obstructed further maintenance and improvements to American Airlines Center.
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“To put it plainly,” the injunction states, “the Stars are holding the American Airlines Center hostage.”
The Stars responded to that filing with one of their own.
“Their lawsuit seeks to marginalize the Dallas Stars to the role of a mere tenant and, ultimately, drive the team out of Dallas,” Sandler, of Winstead PC law firm, said in his statement. “The goal of the Stars’ lawsuit is to ensure that the AAC continues to serve as a world-class venue for all who call Dallas home. The Stars appreciate the support of its fans and will continue to advocate for what is best for our community and the AAC.”
The relationship between American Airlines Center’s two tenants has deteriorated over the past year, as both franchises have sought to iron out their futures in the building or elsewhere once the lease expires in 2031. The Mavericks are seeking to build a basketball-only arena in Dallas, and the Stars are engaging with other cities, including Plano and Frisco. The Dallas Morning News reported Tuesday that the Stars’ are considering a new $1 billion arena in Plano at the Shops at Willow Bend Mall site.
The Mavericks first raised awareness of the agreement breach over a year ago, a few weeks before the team and the city of Dallas say the Stars backed out of a $300 million deal to renovate AAC, according to interviews and documents obtained by The News.
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.
The Stars strongly deny they agreed to the deal and say had it gone through, the Mavericks and Stars would have shared half of the renovation costs. The Stars maintain they agreed to a different deal that would extend the existing lease with both teams staying at AAC through 2035.
Days after last year’s deal collapsed, the Mavericks on Oct. 25, 2024, cited the breach of contract and seized the Stars’ half of AAC’s operating company.
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. Not explained is why apparently no one from the city noticed the Stars’ breach in 2003.
For the past year, the Mavericks have withheld the Stars’ quarterly arena proceeds and kept them in escrow with Chicago Title Company. The Stars say the amount is “in the tens of millions.”
In their filing Tuesday, the Stars’ challenged the Mavericks’ ability to do so, stating the Mavericks “wrongly claimed” that they could declare a breach of the 1998 franchise agreement and that “only the City may assert a breach of the Stars franchise agreement.” The Stars claim the Mavericks cannot claim the Stars’ interest in Center Operating Company until a court of competent jurisdiction finds that the Stars breached certain obligations owed to the city.
The Stars also point to, in the filing, that the Mavericks and city were aware of their headquarters in Frisco and previously “accepted the Stars’ office location(s) without issue.”
“The Stars are deeply disappointed that the Mavericks’ new ownership has chosen this path,” Sandler said. “After a quarter-century of partnership, the Mavericks now take issue with the location of the Stars’ office in Frisco, which the team uses in conjunction with its principal office in downtown Dallas. This change in position is solely to enrich one party — the Mavericks — and their actions show no concern for the negative impact on the Dallas community or the future of the AAC.”
The dueling filings will now play out in the Texas court system, as the teams couldn’t resolve their differences without attorneys. The Stars told The News Tuesday that they would not remain at American Airlines Center beyond 2031 under the terms the Mavericks are seeking to solidify through their legal action. Stars president Brad Alberts said the team’s business would suffer significantly.
“It’s really sad that a relationship has turned into this for no reason,” Alberts said. “The Stars are not the Dallas Mavericks’ enemy. Never have been and never will be. We want to work together with them and run a really good sports and entertainment business at this arena. We want what’s best for them, if they want to build a new arena. …
“We’re not trying to take interests away from the Mavericks. We’re not trying to take position away from the Mavericks, and it’s just unfortunate. It’s the biggest disappointment in my career.”
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