Mavs, Stars Settle American Airlines Center Lawsuit as Both Eye New Arenas
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A legal dispute between the last two major sports franchises operating in Dallas proper came to a resolution on Monday, with the Mavericks and Stars settling their differences over control of American Airlines Center.
Settlement terms were not disclosed, but the franchises confirmed that both will continue playing games at American Airlines Center through at least the 2030-2031 season. The announcement comes as both teams prepare to potentially relocate to new arenas outside of downtown Dallas, closing a chapter in both the arena’s history and that of the central business district.
“The matter has been amicably resolved to the satisfaction of both parties, and the parties have and will have no further comment on this matter,” Stars spokesperson Joe Calvillo told The Dallas Morning News.
Litigation erupted publicly last October after years of mounting tensions between the franchises over their joint operation of American Airlines Center. As CandysDirt.com reported at the time, the Mavericks alleged the Stars breached a provision of a decades-old agreement requiring the NHL franchise to maintain its corporate headquarters within Dallas city limits. The Stars moved their headquarters and practice operations to Frisco in 2003.
The Mavericks also claimed the Stars refused to participate in a major renovation of the arena and asserted a right to redeem the Stars’ interest in Center Operating Company, the entity through which the franchises jointly operate the arena, for $110 million.
Characterizing the maneuver as a “hostile takeover,” the Stars countersued and disputed the Mavericks’ interpretation of their agreements, later arguing that the NBA team’s own ownership structure (with the ownership group in Las Vegas) raised questions about whether its headquarters remained in Dallas. A Texas business court judge ruled in favor of the Mavericks. The Stars appealed the decision, but instead of continuing the fight, the franchises reached Monday’s announced agreement.
“We are pleased to hear that an agreement has been reached,” said City Manager Kimberly Tolbert. “As we plan for the future of downtown and our sports and entertainment district, this agreement is an important step, and we look forward to continuing our partnership with both organizations as we work to strengthen their long-term future in our city.”
With both teams seemingly committed to staying at American Airlines Center into 2031, the city center can expect to hang on to another five years or so of game traffic and spending as the franchises plan for potential futures outside of downtown. The Mavericks are considering the former Valley View Center site in Far North Dallas, and the Stars are working toward a new hockey arena at The Shops at Willow Bend in Plano.
The Mavericks’ arena search has been intertwined with the politically charged debate over whether Dallas should abandon and redevelop City Hall. CEO Rick Welts said earlier this year that downtown was the team’s preferred location, suggesting that officials would have to take action on 1500 Marilla St.’s fate before real concrete discussions on an arena/entertainment district project could begin.
In June, the Mavericks entered into option agreements covering more than 100 acres at the former Valley View Center. The team recently said it was “fully committed to Valley View” and conducting due diligence on the property following some legal sparring with minority-stake owner Mark Cuban, which had the Mavericks describing the options as having a “purely exploratory nature.”
Meanwhile, the Stars have been plowing ahead with a possible move to Plano. Officials have since begun laying the groundwork for the project, including creating a nearly 900-acre tax increment reinvestment zone and advancing plans for a potential venue-tax election. Under the preliminary framework, Plano could contribute $700 million toward completion of the arena, which would be city-owned and initially leased to the Stars for 30 years. The terms remain under negotiation.
If the Valley View and Willow Bend projects both come together, the 2031-2032 season would be the first since the Stars relocated to Texas in 1993 in which Dallas’ NBA and NHL franchises play in separate buildings. It could also leave the roughly 20,000-seat American Airlines Center without a permanent major-league tenant only three decades after it opened.
The Dallas Wings could provide the arena with another professional sports tenant in the short term. The WNBA franchise, which is moving to a renovated Dallas Memorial Auditorium, has decided to play its full 2027 season at American Airlines Center as construction delays push its permanent Dallas home to at least 2028.
Owned by the city, American Airlines Center was completed in 2021. It was built in Victory Park, a mixed-use urban district comprising residential, retail, and office space. Once a railyard and power plant, Victory Park is now home to thousands of residents, and it is one of the city’s top nightlife revenue generators.
