The ongoing legal conflict between the Dallas Stars and the Dallas Mavericks has escalated, with the Stars launching accusations against the Mavericks regarding their headquarters. According to recent court filings, the Stars claim that the Mavericks have breached their Franchise Agreement by allegedly relocating their principal corporate office to Las Vegas, Nevada.
Key Allegations in the Legal Dispute
Documents submitted by the Dallas Stars on Tuesday outline significant claims against the Mavericks. These allegations include:
- Violation of the Mavericks Franchise Agreement with the City of Dallas.
- Designating Las Vegas as the new location for corporate and executive offices.
- Engagement in actions contrary to their previous claims regarding management of the American Airlines Center.
Joshua M. Sandler, legal counsel for the Dallas Stars, remarked that the new owners of the Mavericks designated their principal offices more than 1,200 miles away from Dallas, pinpointing a clear departure from the obligations outlined in the Franchise Agreement.
Background of the Dispute
The conflict traces back to late October 2023 when the Mavericks’ ownership filed a lawsuit against the Stars. They accused the Stars of violating their lease and blocking upgrades to the American Airlines Center (AAC).
The Dallas Sports Group (DSG), which controls the Mavericks, alleged that Stars ownership was obstructing necessary improvements to the facility. The group is led by Miriam Adelson and her son-in-law Patrick Dumont, who have a significant financial stake in the franchise.
Mavericks’ Ownership and Financials
In December 2023, the Adelson-Dumont family purchased a 69% stake in the Mavericks for approximately $3.5 billion. Former owner Mark Cuban retains a 27% minority share and oversees basketball operations, while Mary Stanton possesses the remaining 4%.
Stars’ Counteractions and Statements
The Stars responded to the Mavericks’ lawsuit by filing a counteraction, describing the legal proceedings as an attempt to undermine their management at the AAC. The Stars emphasized their intent to maintain operational integrity and reject any takeover attempts.
Both teams, as per agreements, had previously committed to keeping their corporate headquarters in Dallas until at least 2031. However, the Stars recently moved their operations to Frisco, which the DSG claims violates this agreement.
Sandler noted that the Mavericks have been aware of the Stars’ Frisco office for two decades and only raised concerns after the ownership transition.
City Manager’s Perspective
In light of these developments, Dallas City Manager Kimberly Bizor Tolbert expressed her desire for both teams to uphold their commitments to the city. She remains hopeful for a resolution that supports the continued presence of both franchises in Dallas.
This legal battle highlights the complexities of sports franchise agreements and the importance of geographic commitments in maintaining team identities. Both teams face mounting pressure as they navigate these legal waters.
