The South Stars were founded by Larry Schmittou, who was a principal owner of the Nashville Sounds minor-league baseball team. The team played at Municipal Auditorium, whose seating configuration was such that spectators seated more than a row back in the seats that were above and behind the goal lines could not see the nets. The team was the top affiliate of the Minnesota North Stars of the National Hockey League and was coached by Gene Ubriaco, who would later coach the Pittsburgh Penguins of the NHL.