A Texas Business Court judge heard sharp arguments exchanged from attorneys representing the Dallas Mavericks and Dallas Stars over their ongoing American Airlines Center dispute in a summary judgment hearing on March 6 at SMU’s Dedman School of Law.
Judge Bill Whitehill did not issue a ruling on the seven motions for summary judgment, five by the Stars and two by the Mavericks.
At issue in this case is the Dallas Stars headquarters location in Irving. The Dallas Mavericks claim the Stars breached its contract when the NHL team moved its headquarters to Frisco in 2003. The Stars counter-sued, stating that only the City of Dallas could require them to keep its headquarters in Dallas.
The Mavericks’ attorney, Chip Babcock, said the court indicated a ruling may come quickly, potentially within two weeks.
“Time is really the essence on this thing,” Babcock said. “I mean, you got five years left on this lease, and the [American Airlines Center] building really is [in] serious need of some work.”
As of now, a jury trial is scheduled for May 11.
“I always expect to go to trial,” said Josh Sandler, the Dallas Stars’ attorney. “I wouldn’t be a very good attorney if I did not expect to go to trial.”
The hearing lasted a little over two hours in Dedman’s Walsh Classroom, and began with Babcock, Sandler and Whitehill acknowledging their SMU Dedman Law ties, looking out at the law students in attendance. Babcock once taught in the law school, and both Sandler and Whitehill are alumni.
Dean Jason Nance said in an email to The Daily Campus that Dedman Law’s new partnership with the Texas Business Court is an educational opportunity for students to learn about the new court system.
“Through this collaboration, students will gain firsthand insight into the inner workings of this newly established court system at a time when it is still new to practicing lawyers across the state,” Nance said. “This early exposure will give Dedman Law students a distinctive advantage in their careers and enhance their marketability with leading law firms.”
The students in attendance were among the first to view the once-private dispute between the franchises now on a public stage.
But how did it get to this point?
In 1998, the Stars and Mavericks entered into a contract that allowed the two teams to jointly operate American Airlines Center. The AAC is owned by the City of Dallas, but both teams have held home games in the arena since it opened in 2001, co-managing the space and maintaining an equal responsibility for operations and future renovations.
On Oct. 25, 2024, the Mavericks sent a letter to the Stars saying the team breached its franchise contract and blocked renovations by establishing its headquarters in Frisco, not Dallas. The Stars moved its business operations office to Frisco in 2003 after being headquartered in Irving since 1999. Three days later, the Mavericks filed suit against the Stars, but the Stars counter-sued, alleging that only the City of Dallas could require the team to keep its headquarters in Dallas. The Stars also alleged the Mavericks blocked previous attempts to renovate the arena, not the other way around.
This Mavericks’ lawsuit could mean complete ownership of AAC operations.
The two teams have gone back and forth repeatedly since the original lawsuit last October. More recently, the Stars alleged that the Mavericks had moved their primary headquarters not just out of Dallas, but out of Texas altogether.
In Nov. 2025, the Stars amended their countersuit to include allegations that the Mavericks’ primary business location is in Las Vegas, where the Dumont family, who now owns the NBA franchise, resides. All of the drama built up for an epic showdown.
Babcock opened the summary judgment, saying in his opening remarks, “[The] court has recognized this is a very important case, not only for the Mavericks but for the Stars as well, but more importantly for the city of Dallas.”
Babcock began his defense strongly, referencing two images of the exterior of the Stars headquarters in Frisco. The first image, taken in Oct. 2024, had the words “Executive Offices” on the building. The second image, taken in Dec. 2024, only had the word “Offices” on the building. His argument– the Stars allegedly knew they were in breach and took off the word “Executive” from the side of their building.
In addition to arguing an alleged breach of location, Babcock also argued that the Stars allegedly refused to pay the year-end bonuses to AAC employees. This bonus was meant to be paid 50/50. The Mavericks ended up paying 100% of the bonus.
When Whitehill asked Babcock why it took so long to bring up these issues, Babcock responded, “Nobody wanted to rock the boat.”
Sandler and his co-counsel, Frank Carroll, put on a show for the courtroom.
The two tag-teamed in their remarks.
Sandler pushed back on the Mavericks’ claim that they had not contributed to the AAC’s upkeep with a PowerPoint presentation. The slides showed stacks of cash on one side, the Dallas Stars logo in the corner and photos of cash with arrows pointing to a picture of the AAC – implying the Stars have poured money into the AAC.
As the hearing went on, it turned into a catfight filled with snippy remarks, salty attitudes and bold comebacks between the two legal teams.
Gunning for a reaction from Babcock and his team, Sandler continued through his defense, reusing Babcock’s phrase “nobody wanted to rock the boat” throughout his defense.
As part of the Stars’ argument, Carroll argued that the Mavericks changed their principal office address to Las Vegas in 2024, where the new owners reside.
Carroll then got personal with the Mavericks, referencing the Luka Dončić trade, calling the Mavericks “a Vegas corporation that traded Luka [Dončić] for a bag of magic beans.”
Babcock interrupted, saying, “Injured bag of beans.”
“Well, yes,” Carroll continued. “And of course Anthony Davis.”
The Stars are considering a move to Plano, a plan first reported by the Dallas Morning News in October. Plano officials confirmed to the DMN that they were in talks at the end of February with the Stars to potentially build an arena at The Shops at Willow Bend, but no formal offer has been made.
The Mavericks are looking to move to a new arena in Dallas after their lease with the AAC expires. As two sites are currently being considered, one near City Hall and another in Far North Dallas, a final decision is to be announced by July 1.
In the midst of this ongoing legal battle, both teams want to move away from the arena, yet Babcock said: “[The] Mavs are committed to this building and are committed to the city of Dallas.”
What comes next in this case is Whitehill’s ruling on the motions for summary judgment. Babcock said the Mavericks hope their partial judgment is granted.
“Our motion for summary judgment was just partial,” Babcock said. “So we hope that it’ll be granted and they hope to clear that we have redemption rights and that’ll get the American Airlines Center— off center.”
Sandler said he looks forward to seeing what Whitehill rules, hoping the judge rules in favor of the Stars.
“We hope that the court sees it our way,” Sandler said. “We believe we’re right.”
