DALLAS — Two of Dallas’ beloved sports franchises are at odds. The Dallas Mavericks have filed a breach of contract dispute against the Dallas Stars, The two teams share the same building, the American Airlines Center.
The specifics of the suit allege that the Stars are in breach of a clause in their contract that dictates that the team’s corporate offices must be located in the city of Dallas. The Stars’ offices and practice facility are in Frisco, as they have been since 2003.
As of late Tuesday, the Stars have countersued, saying that they wish to “restore normal operations at the [American Airlines Center] and prevent the Mavericks’ attempted hostile takeover,” according to a statement from the Stars’ attorney to the Dallas Morning News.
The Stars maintain that the Mavericks have no standing in the suit, and that only the City of Dallas can determine that their relocation to the Frisco offices represent a breach of the original agreement between the parties.
The original injunction also said that the Stars have blocked maintenance and improvements to the American Airlines Center.
“Their lawsuit seeks to marginalize the Dallas Stars to the role of a mere tenant and, ultimately, drive the team out of Dallas. 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,” Stars’ counsel Joshua M. Sandler said in the statement.
According to an article from the Dallas Morning News, the Mavericks allege the Stars pulled out of an agreement to spend $300 million to renovate the arena. In the deal, the Stars had potentially agreed to remain in the arena until 2061, as opposed to leaving when the current lease expires in 2031. The Mavericks and the city maintain they were to split the cost 50-50, while the Stars say they were to pay a portion of the cost for the renovations.
The Mavericks are hoping that the resolution of this lawsuit will establish them as the prime owners of the “Arena entities.”
Since the Stars backed out of the agreement a little over a year ago, the Mavericks have been holding the Stars’ arena proceeds in escrow, hoping for a resolution.
The money they have held, as estimated by the Stars organization, is said to be in the “tens of millions” of dollars.
In the filing, the Mavericks state that “the Stars are holding the American Airlines Center hostage.”
The Stars have been said to be looking to potentially move out of downtown Dallas when the lease expires, potentially to Frisco or Plano. For their part, the Mavericks have been reported to be contemplating a new arena in downtown Dallas.
Read the lawsuit here: