star-telegram.com

Dallas Mavericks suing Dallas Stars for breach of contract over arena

The Dallas Mavericks are suing the Dallas Stars, alleging breach of contract against the NHL team, in a filing in Texas Business Court on Tuesday, according to The Dallas Morning News.

The filing alleges that the Stars are in breach of a 1998 franchise agreement that stated the Stars’ corporate headquarters had to be located in the city of Dallas.

The Stars’ headquarters has been located at 2601 Avenue of the Stars in Frisco since 2003.

The Mavericks also allege that additional improvements and upgrades to American Airlines Center, the teams’ shared arena, were obstructed by the Stars.

The Mavericks brought up the clause shortly before a deal between the teams and the city to renovate American Airlines Center that would’ve seen the Mavericks and city split the costs 50-50 and have both teams stay at the AAC till 2061, the Mavericks and the city said.

The Stars deny that. They say they agreed to a deal that would only extend the lease until 2035 and would’ve seen the Stars and Mavericks split costs, the Morning News said.

“To put it plainly, the Stars are holding the American Airlines Center hostage,” the Mavericks allege in the filing, according to the Morning News.

The Mavericks, with the city of Dallas in agreement, took control of the Stars’ half of AAC’s operating company days after the aforementioned deal was nixed and have since withheld arena proceeds in an escrow account, an amount the Stars described as in the “tens of millions,” the Morning News said.

The Mavericks’ and Stars’ lease with American Airlines Center ends in 2031, with the Mavericks planning on a new arena, still located in the city of Dallas, likely in the downtown area.

The Stars are considering moving, with Plano a likely destination, but the team hasn’t ruled out staying in Dallas, Front Office Sports reported.

Read full news in source page