By 1998, the Dallas Mavericks, owned by Mark Cuban, and the Dallas Stars were indicating their desire for a new facility to replace the dated Reunion Arena. Dallas taxpayers approved a new hotel tax and rental car tax to pay for a new facility to cover a portion of the funding, with the two benefiting teams, the Mavericks and the Stars, picking up the remaining costs, including cost overruns. The new arena was to be built just north of Woodall Rodgers Freeway near Interstate 35E on the site of an old power plant.
On 18 March 1999, American Airlines announced that it would be acquiring the naming rights for the arena for US$195 million. American Airlines is headquartered in Dallas and is based at DFW Airport.
On 27 July 2001, the facility opened with the largest ribbon cutting ceremony ever, according to the Guinness Book of Records. The first event occurred the next day with an Eagles concert. On the next night, the arena hosted the last show of Michael Flatley's Feet of Flames tour. The first sporting event took place on 19 August 2001 with the Dallas Sidekicks of the World Indoor Soccer League taking on the San Diego Sockers.
