The long-simmering tensions between the Dallas Mavericks and Dallas Stars have officially erupted into a legal battle, with the Mavericks filing a comprehensive lawsuit accusing their American Airlines Center co-tenants of breaching their lease agreement and obstructing crucial arena upgrades, signaling a major turning point for both franchises’ futures in Dallas.
A deep rift has been exposed in Dallas sports, culminating in a dramatic legal showdown between the Dallas Mavericks and the Dallas Stars. The majority owners of the NBA franchise, Dallas Sports Group (DSG), have filed a lawsuit against Stars ownership, alleging a breach of contract and consistent obstruction of necessary upgrades to the shared American Airlines Center (AAC). This move, initiated on Tuesday, October 28, 2025, in Texas business court, marks the boiling point of a year-long dispute that has significant implications for the future of professional sports in the metroplex.
The Core of the Dispute: Lease Breach and Obstructed Upgrades
The Mavericks’ 253-page petition for injunctive relief centers on two primary accusations. First, DSG claims the Stars are in violation of a specific clause in their 1998 franchise agreement. This clause mandates that both teams must maintain their corporate headquarters within the city of Dallas through 2031. However, the Stars’ corporate offices and practice facility have been located in Frisco since 2003, a move the Mavericks assert is a clear breach.
Second, DSG accuses the Stars of actively resisting and blocking critical improvements to the AAC. “Despite initial signs of cooperation, Stars ownership has consistently resisted efforts to improve the facility,” the Mavericks’ ownership group stated in a press release. The Mavericks emphasize that these upgrades are vital for preserving the fan experience and ensuring the venue’s long-term viability, especially as both teams approach the 2031 expiration of their current leases.
The city of Dallas has, at various points, sided with the Mavericks’ assessment of the breach. City Manager Kimberly Bizor Tolbert officially notified Stars owner Tom Gaglardi of the headquarters clause breach in an October 3, 2025 letter, as reported by The Dallas Morning News. This official city stance bolstered the Mavericks’ earlier actions to claim greater control over the arena’s operations.
A Breakdown in Negotiations and Financial Fallout
The current lawsuit stems from a collapse in negotiations over AAC upgrades and a lease extension that occurred in October 2024. According to DSG and the city, the Stars backed out of a proposed $300 million renovation deal. Under this alleged deal, the Mavericks and the city would have split the renovation costs 50-50, with the Stars reportedly paying nothing and agreeing to remain at the AAC through 2061. The Mavericks, in turn, would have stayed through 2031 before moving to a new basketball-only arena.
However, Stars President and CEO Brad Alberts strongly denies this characterization of events. Alberts told The Dallas Morning News that his team was not kept in the loop during planning and that they were always prepared to pay their share of renovation costs, stating, “We never asked to not be included in helping pay for this. That’s untrue.” He maintains the Stars agreed to a different deal that would have seen both teams extend their lease at the AAC through 2035.
Following the breakdown in negotiations, the Mavericks took aggressive action. On October 25, 2024, citing the headquarters clause breach, they sent a symbolic $110 check and seized the Stars’ 50% interest in Center Operating Company, which manages the AAC. Since then, the Mavericks have withheld the Stars’ quarterly arena proceeds, amounting to “tens of millions” of dollars now held in escrow, according to the Dallas Morning News.
A Timeline of Escalation
The dispute has been building for over a year, with key events marking the deterioration of the teams’ relationship:
- July 28, 1998: The Stars and Mavericks sign lease agreements with the city of Dallas, including the clause requiring their principal corporate offices to be maintained in Dallas.
- August 4, 2003: The Stars relocate their practice facility and corporate offices to Frisco.
- February 12, 2024: Patrick Dumont, the new Mavericks’ team governor, meets with Brad Alberts, expressing a shared vision for significant AAC upgrades.
- October 4, 2024: The city of Dallas finalizes a proposed $300 million renovation agreement, which Alberts claims was the first time he saw the detailed terms.
- October 8, 2024: City and Mavericks believe a verbal agreement is reached on the $300 million renovation. Alberts reportedly apologizes for the Frisco move and commits to returning the Stars’ headquarters to Dallas by December 2025. The Stars later dispute the terms of this agreement.
- October 14, 2024: Alberts notifies Dallas Assistant City Manager Robin Bentley that the deal is off.
- October 25, 2024: The Mavericks send the Stars $110 and a letter, stating they are exercising their contractual right to purchase the Stars’ interest in Center Operating Company due to the 2003 lease breach.
- September 9, 2025: Alberts proposes new, significantly higher demands for AAC improvements, ranging from $400-$500 million, with no financial obligation from the Stars. He also requests that the city waive the Stars’ annual $3.4 million rent.
- October 3, 2025: News breaks of the Stars exploring new arena locations in Plano, Frisco, The Colony, Arlington, and Fort Worth. Later that day, City Manager Kimberly Bizor Tolbert sends a letter to Tom Gaglardi, officially notifying him of the Stars’ default on the headquarters clause and calling their new demands “beyond unreasonable.”
- October 7, 2025: The Mavericks send a letter to the Stars, referencing Tolbert’s breach notice as legal reinforcement for their October 2024 action to acquire the Stars’ interest in Center Operating Company.
- October 28, 2025: The Mavericks file their 253-page petition for injunctive relief in Texas business court.
What’s Next for the Dallas Mavericks and Dallas Stars?
The lawsuit by Dallas Sports Group aims to secure legal confirmation of their lease ownership and enable desired renovations, effectively seeking to be recognized as the “sole owners of the ‘Arena entities’.” This push for control comes as both teams are actively considering their post-2031 futures.
Under the leadership of new owners Miriam Adelson and her son-in-law Patrick Dumont, who acquired a 69% majority stake in December 2023, the Mavericks are openly exploring plans for a new basketball-only arena in Dallas as part of a larger entertainment district. This vision aligns with the Las Vegas Sands Corp.’s expertise in hospitality and development. Meanwhile, the Stars are exploring various cities, seeking a venue that would allow them to control real estate outside the arena and generate “365-day revenue,” a critical component for modern sports franchises.
The legal battle introduces significant uncertainty for both organizations and their loyal fan bases. While the Mavericks have stated that the fan experience at the AAC will remain unchanged during the legal dispute, the underlying tensions could affect future collaborative efforts and the overall trajectory of both franchises in Dallas. Fans are left to wonder if their beloved teams will continue to share a home, or if this lawsuit will ultimately lead to separate paths for the Mavericks and Stars long before their current lease expires in 2031.
