The city of Dallas will turn over control of Reunion
Arena this fall to the Mavericks and Stars under a five-year
deal both teams "are expected to sign this week," according
to Robert Ingrassia of the DALLAS MORNING NEWS. Arena Group
President Brad Mayne said that the teams will "work to
improve customer service" at Reunion for the final two to
three seasons before moving into their new arena. The city
of Dallas will retain ownership of the arena. Under terms
of the deal, the teams will keep all cash from bookings,
concessions and parking at Reunion, but must pay labor and
maintenance costs. Ingrassia reports that in recent years,
the city has turned an annual operating profit at Reunion of
"about" $750,000 (DALLAS MORNING NEWS, 7/29). Documents for
the financing of the new $230M arena were signed yesterday,
but only the city's $125M share of the project is in the
bank, because the $180M private placement by two banks which
includes the Mavs' and Stars' $105M portion "isn't expected
to be completed until next month." The city has put its
money into an escrow account. The $180M promissory notes
are being marketed to potential investors by Chase Manhattan
and NationsBank (Mede Nix, FT. WORTH STAR-TELEGRAM, 7/29).