Entertainment Districts as the New Sports Asset

What the Dallas Mavericks’ and Dallas Stars’ planned relocations reveal about large-scale redevelopment, public-private structuring, and the next phase of sports- and entertainment-anchored growth in North Texas

The Dallas Mavericks’ and Dallas Stars’ plans to leave the American Airlines Center around 2031 are more than venue relocations; they reflect a broader shift in how professional sports franchises create and capture long-term value through large-scale entertainment district development. The Mavericks have now identified the former Valley View Mall site in North Dallas as their preferred location, where the organization has entered into option agreements for approximately 104 acres, while the Stars have signed a nonbinding letter of intent to pursue a new arena and entertainment district at The Shops at Willow Bend in Plano. These parallel projects signal the next phase of sports- and entertainment-anchored real estate in the Dallas-Fort Worth Metroplex.

From a legal and commercial real estate perspective, these projects illustrate a structural shift in franchise strategy. The arena itself is no longer the sole asset. The surrounding entertainment district is increasingly the long-term value driver. That model is already familiar in Texas. Clark Hill has worked on the Mansfield Sports District development and on PGA Frisco, two projects that demonstrate how a sports or entertainment anchor can catalyze broader mixed-use environments with hospitality, retail, public gathering, and experiential components. As the Mavericks and Stars advance their next-generation developments, they are following a pattern that developers, municipalities, and counsel are seeing with increased frequency across high-growth markets.

I. From Venue to Entertainment District

The clearest takeaway from the Mavericks’ and Stars’ relocation strategies is that the arena is no longer the full economic story. In today’s market, the value lies in the entertainment district surrounding the venue: the restaurants, retail, hospitality, public spaces, and adjacent development rights that can generate year-round activity and diversify revenue streams.

That model is not theoretical. Clark Hill has worked on the Mansfield Sports District development, where the Texas Health Mansfield Stadium functions as the catalyst for a broader vision that includes convention, hotel, restaurant, and entertainment uses. Clark Hill has also worked on PGA Frisco, which shows how a premier sports anchor can be integrated into a destination environment that drives hospitality, retail, and experiential activity. Those examples help explain why franchise owners increasingly view venue projects as district-scale development plays rather than stand-alone facilities.

From a legal standpoint, entertainment district developments are materially more complex than traditional arena projects. They typically require:

• coordination of horizontal development across multiple asset classes
• phased construction obligations tied to financing and incentives
• integration of public and private ownership interests across the broader project footprint

In that framework, the venue remains important, but the entertainment district is the asset that often drives long-term value creation.

II. Legacy Retail Redevelopment as a Development Catalyst

A defining feature of the relocation strategies of both the Mavericks and the Stars is the selection of legacy retail property as a redevelopment platform. The Mavericks’ preferred site is the former Valley View Mall property in North Dallas, and the Stars’ proposed site is The Shops at Willow Bend in Plano. In both cases, the underlying real estate offers scale, visibility, and redevelopment optionality that are difficult to replicate on a fully built urban site.

That approach reflects a broader market pattern: large-format retail properties, often well-located but operationally obsolete or underperforming, are being repositioned into mixed-use environments centered on experience rather than traditional merchandising. For developers and municipalities, those sites offer a rare combination of land assemblage, access, and visibility.

Clark Hill has seen the same redevelopment logic in other high-profile projects. The Mansfield Sports District demonstrates how a single anchor can support a broader mix of hospitality, entertainment, and civic uses. PGA Frisco shows how a focused sports concept can evolve into a destination with significant surrounding commercial and experiential value. Those projects underscore why legacy retail and large underutilized tracts have become attractive platforms for modern entertainment districts.

From a legal standpoint, these redevelopments commonly raise issues involving:

• title and assemblage challenges, especially where ownership is fragmented
• demolition, remediation, and site preparation obligations
• entitlement and zoning issues that often dictate feasibility and timing

Mansfield’s strategy helps illustrate why early public-side preparation can materially improve project execution. By controlling the underlying property, aligning zoning and land-use policy in advance, and structuring the framework for incentives before bringing in vertical developers, the City reduced uncertainty at the outset of the project. That approach allowed Mansfield to present a more development-ready opportunity, shorten the path from concept to implementation, and create a clearer platform for private investment. In practical terms, that sequence (site control first, entitlements second, incentive structure third, developer engagement after) can be a decisive advantage in large-scale entertainment and mixed-use redevelopment.

III. Public-Private Partnerships and Incentive Structuring

Projects of this scale are rarely feasible without public-private partnerships and carefully structured economic development incentives. The legal challenge is not simply obtaining public participation; it is structuring that participation in a way that aligns municipal priorities, allocates risk, and preserves long-term project value.

The Stars’ proposed development in Plano is a current example. The project is now moving through early public processes, including a letter of intent, taxing district action, and preliminary demolition support tied to the Willow Bend redevelopment. That combination illustrates how major sports and entertainment projects are often assembled through layered public measures rather than a single incentive mechanism.

Clark Hill’s work on the Mansfield Sports District likewise illustrates the importance of aligning public objectives with private development goals. When a project includes public-facing amenities, infrastructure improvements, or long-term economic development commitments, counsel must help negotiate agreements that define milestones, allocate performance risk, and protect the value proposition for all parties.

Key legal considerations commonly include:

• structuring tax increment or other incentive mechanisms to satisfy statutory requirements
• negotiating long-term ground leases, facility agreements, or ownership arrangements
• drafting development agreements with milestones, remedies, and clawback protections
• coordinating approvals across multiple public bodies

These transactions demand an interdisciplinary approach spanning real estate, economic development, public finance, and land use.

IV. Lease Expiration as a Development Driver

Both teams face the same fundamental timing issue: Their leases at the American Airlines Center expire around 2031, which creates a fixed development window. That kind of deadline can accelerate negotiations, but it also compresses entitlement, financing, acquisition, and construction timelines.

Deadline-driven development is familiar in major projects. Clark Hill’s work on projects such as the Mansfield Sports District and PGA Frisco reflects how external milestones, event commitments, and negotiated obligations often shape transaction sequencing and project execution.

From a transactional standpoint, compressed timelines heighten the importance of:

• contingency planning in acquisition and purchase agreements
• option structures that preserve site control while approvals advance
• coordination of financing and entitlement workstreams under compressed deadlines

A fixed lease expiration can be a powerful catalyst, but it also magnifies execution risk if site control, entitlements, incentives, and construction sequencing are not aligned early.

V. Regional Impact: Expansion into Collin County and Beyond

The implications of these projects extend well beyond Dallas and Plano. Together, they reinforce the continued northward movement of investment, population, and entertainment-driven development across the Metroplex.

PGA Frisco has already demonstrated how a marquee sports anchor can accelerate surrounding commercial growth in Collin County. The Mansfield Sports District shows that the same model can be adapted in other high-growth submarkets when a venue or entertainment anchor is paired with coordinated development strategy. Clark Hill’s work on both projects provides a practical view of how these developments are structured, negotiated, and implemented.

As entertainment district development continues to push north, communities such as Frisco, Prosper, Celina, and other growth corridors are likely to experience:

• increased residential demand and absorption pressure
• growth in hospitality, dining, and experiential retail
• rising land values and speculative investment
• additional infrastructure demands and related public investment opportunities

For municipalities, landowners, and developers, these projects are a strong indicator of where future growth, capital, and public-private collaboration are likely to concentrate.

Conclusion

The Mavericks’ and Stars’ planned relocations mark a significant inflection point in the evolution of sports-anchored real estate in DFW. More importantly, they confirm a broader market reality: the venue is no longer the entire asset story.

The key takeaway is clear: The entertainment district is the asset.

The Mansfield Sports District and PGA Frisco illustrate that this model is already reshaping development across Texas. The Mavericks’ Valley View strategy and the Stars’ Willow Bend proposal mark its next phase: larger in scale, more complex in structure, and more ambitious in their use of entertainment districts as long-term value platforms.

For developers, municipalities, and legal practitioners, these projects underscore the need for counsel that can integrate land use, incentives, public-private partnership structuring, governmental approvals, and complex real estate execution. As these developments advance, they will not only reshape individual sites but also help define the next decade of growth across the Metroplex.

About the Authors

Christy Pennington is a commercial real estate attorney at Clark Hill, where she represents clients in complex transactions involving land acquisitions, development, leasing, and long-term asset strategy. Her practice focuses on retail, mixed-use, and healthcare developments, as well as the negotiation of development agreements, purchase and sale agreements, lease agreements, economic incentives, and other critical project documents. Known for her practical, business-minded approach, Christy helps clients navigate sophisticated deals and bring transformative projects to fruition. She is an active leader with CREW Dallas and has been recognized as a Connect CRE Lawyer in Real Estate and is currently nominated for Bisnow DFW’s Women Leading Real Estate Awards – Deal Maker of the Year.

David Ovard is a Texas attorney with more than 25 years of experience in litigation with a focus over the last 15 years in specialized real estate and technology projects, partnerships and joint ventures. He has expertise in positioning clients in extremely sophisticated projects for long-term success and being in victorious positions if litigation becomes necessary. He is the primary person responsible for PGA Frisco, including negotiating and drafting the development and economic incentive agreements for the entire transaction including economic incentives and hosting more than ten PGA of America tournaments. As a result of his work, the PGA of America relocated its headquarters to Frisco, Texas and PGA Frisco has hosted two major championships and is hosting the PGA Championship in 2027. David was also selected as Frisco Citizen of the Year in 2024 and Person of the Year in Frisco, Texas in 2025.

Contact Clark Hill

If you have questions regarding the content of this alert, please contact any member of Clark Hill’s Retail & Hospitality practice:

• Christy Pennington Collin County; Real Estate (including Acquisition, Development, and Retail); cpennington@clarkhill.com; 469.287.3920
• David Ovard Collin County; Real Estate (including Acquisition, Development, and Retail); dovard@clarkhill.com; 469.287.3924
• Amy Akers Austin; Energy, Land Use/Zoning, and Public-Private Partnership/Economic Development; akers@clarkhill.com; 512.499.3607
• Ted Degenhardt Detroit; Construction; tdegenhardt@clarkhill.com; 313.965.3458
• Jeff Gallant Detroit; Construction; jgallant@clarkhill.com; 313.967.4071
• Pat Larkin Dallas; Environmental; plarkin@clarkhill.com; 214.770.3881)
• Mike Laszlo Boulder; Hospitality, Liquor Law, and Corporate; mlaszlo@clarkhill.com; 303.301.2921 or 303.301.2921

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