IN BRIEF: Texas’ Responsible Artificial Intelligence Governance Act
Recently, the Dallas Mavericks filed a lawsuit in the Texas Business Court against the Dallas Stars over management and ownership of the American Airlines Center (“AAC”). Specifically, the Mavericks have sued the Stars for wrongful interference with arena operations and finances claiming that the Stars franchise breached its lease and blocked renovations. Additionally, the Mavericks claim full ownership and control over the AAC because of the Stars’ breach. In response, the Stars filed a countersuit seeking to restore normal operations and prevent the Mavericks’ “attempted hostile takeover of the management of the AAC.”
Background: In 1999, both sports franchises entered into an agreement with the City of Dallas allowing the two teams to jointly operate the city-owned AAC. As such, both have shared the AAC arena since its opening in 2001, each owning half of the companies that run it and splitting revenue from games, concerts, and events. According to the lawsuit, the agreement stipulates that both teams must maintain their corporate headquarters and practice facilities within Dallas city limits; however, the Stars relocated their headquarters to Frisco in 2003. The Stars’ relocation underpins the Mavericks’ breach of the agreement claim resulting in the recent lawsuit.
The Lawsuit: The Mavericks claim that because the Stars moved their headquarters in violation of the agreement, it allowed them to buy the Stars out of their shares of the AAC and related entities. Indeed, after other issues arose relating to the Stars’ alleged refusal to move their headquarters back to Dallas and unwillingness to participate in necessary renovations to the arena, the Mavericks did just that last October. But even though the Mavericks claim that they are now the sole owners of the arena, the Stars are refusing to acknowledge the change in control and are, according to the Mavericks, “holding the arena hostage.” The Mavericks’ resulting lawsuit seeks to establish the team as the sole operators of the AAC and block the Stars from interfering with arena operations. The City of Dallas has since sided with the Mavericks, agreeing that the Stars breached their franchise agreement by moving their headquarters. Notably, the City of Dallas has not yet joined the Mavericks’ lawsuit or filed one of its own.
In response to the Mavericks’ suit, the Stars filed a counter lawsuit requesting the court rule that no relocation occurred, the Mavericks do not have the authority to claim the Stars breached their agreement, and the Stars can maintain partial ownership of the arena. In the suit, the Stars allege that the Mavericks’ owners sent a letter and a total of $110 (a $100 bill and a $10 bill) to purchase the Stars’ stake in the arena per the 1999 agreement. The Stars argue that because the franchise agreement requiring it to maintain its headquarters in Dallas is between the City and the Stars, only the City of Dallas can allege that the Stars violated the franchise agreement. Furthermore, the countersuit claims that neither the City nor the Mavericks owners can prove that the Stars breached the agreement because both knew of the Stars’ office location for over two decades. As to the Mavericks’ other complaints, the Stars asserted that the Mavericks, not the Stars, were the party blocking arena renovations.
A jury trial is scheduled for January 26, 2026, which may determine the future of the relationship between the two teams and the home of the Dallas Stars.
