Who Owns the American Airlines Center? The Definitive Guide

The American Airlines Center (AAC), a cornerstone of Dallas’ vibrant entertainment and sports scene, isn’t owned by a single entity. Instead, ownership is a public-private partnership, a fairly common arrangement for major sports and entertainment venues. The City of Dallas owns the land upon which the AAC sits, while the Dallas Stars and the Dallas Mavericks jointly own the arena itself through a partnership known as Center Operating Company, L.P. (COC). This collaborative structure ensures the arena remains a premier destination and an asset to the city.

Understanding the Ownership Structure

Delving deeper into the ownership puzzle reveals a carefully crafted agreement designed to benefit both the city and the resident teams. Let’s break down the key players:

The City of Dallas: Landowner and Partner

The City of Dallas plays a crucial role by providing the land for the American Airlines Center. This contribution is vital to the project, as land acquisition in a prime downtown location can be a significant hurdle. In exchange for the land, the City benefits from the economic activity generated by the arena, including increased tourism, job creation, and tax revenue. This partnership is a common model for large-scale developments intended to enhance the city’s appeal and provide public benefit.

Center Operating Company, L.P. (COC): Arena Operator

The Center Operating Company, L.P. (COC) is the entity responsible for the day-to-day operations and management of the American Airlines Center. It’s a limited partnership established specifically for this purpose and jointly owned by the Dallas Stars and the Dallas Mavericks. This joint ownership ensures that both teams have a vested interest in the success and upkeep of the arena. The COC handles everything from booking events and managing concessions to ensuring the venue is maintained to the highest standards.

The Dallas Stars and Dallas Mavericks: Team Owners and Key Stakeholders

The Dallas Stars, owned by Tom Gaglardi, and the Dallas Mavericks, owned by Miriam Adelson, are the primary tenants of the American Airlines Center. Their ownership stake in the COC reflects their long-term commitment to the city of Dallas and provides them with control over their home venue. They are directly involved in decisions regarding the arena’s operations, upgrades, and future development. Their success on the ice and court is intrinsically linked to the success of the AAC.

Financial Implications of the Ownership Structure

The ownership structure of the American Airlines Center has significant financial implications. The City of Dallas benefits from revenue streams associated with the arena, such as property taxes (albeit often abated or reduced through development agreements), sales taxes generated by events and concessions, and increased tourism spending. The Dallas Stars and Mavericks, through the COC, receive revenue from ticket sales, premium seating, sponsorships, and other events held at the arena. This revenue helps to offset operating expenses and contributes to the teams’ profitability. This balanced approach aims to create a sustainable financial model for the arena and its stakeholders.

Future of the American Airlines Center

As Dallas continues to grow and evolve, the American Airlines Center will likely undergo renovations and upgrades to maintain its status as a premier venue. The ownership structure will play a crucial role in these developments. The City of Dallas, the Dallas Stars, and the Dallas Mavericks will need to collaborate to ensure that the arena remains competitive and continues to serve the needs of the community. Future investments may focus on improving the fan experience, upgrading technology, and expanding capacity. This ongoing commitment to improvement is essential to the long-term success of the AAC.

Frequently Asked Questions (FAQs)

1. What is the Center Operating Company (COC)?

The Center Operating Company (COC) is a limited partnership that owns and operates the American Airlines Center. It is jointly owned by the Dallas Stars and the Dallas Mavericks.

2. Does American Airlines own the American Airlines Center?

No, American Airlines does not own the American Airlines Center. They have naming rights to the arena as part of a sponsorship agreement.

3. Who is responsible for maintaining the American Airlines Center?

The Center Operating Company (COC) is responsible for the day-to-day maintenance and upkeep of the American Airlines Center.

4. How does the City of Dallas benefit from the American Airlines Center?

The City of Dallas benefits from increased tax revenue (sales and potentially property tax), job creation, tourism, and the overall economic activity generated by the arena.

5. What is the seating capacity of the American Airlines Center?

The American Airlines Center has a seating capacity of approximately 19,200 for basketball games and 18,532 for hockey games. It can accommodate even larger crowds for concerts and other events.

6. When was the American Airlines Center built?

The American Airlines Center opened in 2001.

7. Are there plans for future renovations or expansions of the American Airlines Center?

While specific plans are always evolving, it is likely that the City of Dallas, the Dallas Stars and the Dallas Mavericks will collaborate to ensure that the arena remains competitive and continues to serve the needs of the community. Future investments may focus on improving the fan experience, upgrading technology, and expanding capacity.

8. How does the ownership structure affect ticket prices at the American Airlines Center?

The ownership structure indirectly influences ticket prices. The Dallas Stars and the Dallas Mavericks, as owners through the COC, have a vested interest in maximizing revenue from ticket sales. However, ticket prices are also determined by market demand, the opponent’s popularity, and the overall quality of the game or event.

9. What other events besides hockey and basketball are held at the American Airlines Center?

The American Airlines Center hosts a wide variety of events, including concerts, family shows, conventions, and other sporting events.

10. How does the COC decide which events to book at the American Airlines Center?

The COC considers a variety of factors when booking events, including availability, potential revenue, and the impact on the local community. They aim to create a diverse programming schedule that appeals to a wide range of audiences.

11. What is the economic impact of the American Airlines Center on the city of Dallas?

The American Airlines Center has a significant economic impact on the city of Dallas, generating millions of dollars in revenue annually. It supports jobs in various sectors, including hospitality, entertainment, and retail.

12. Who is the current CEO or President of the Center Operating Company (COC)?

While leadership positions can change, it’s best to refer to the official American Airlines Center website or press releases from the Dallas Stars or Dallas Mavericks for the most up-to-date information on the CEO or President of the COC. This ensures accuracy, as these positions are subject to change.