Oak View Group CEO Tim Leiweke Indicted by DOJ for Rigging Bids on Texas Arena Purchase

OVG and Legends Hospitality have agreed to pay $15 million and $1.5 million in penalties from the justice department’s antitrust division

Tim Leiweke at the 15th Annual Sports Business Journal Awards ceremony in 2022 (Credit: John Lamparski/Getty Images)
Tim Leiweke at the 15th Annual Sports Business Journal Awards ceremony in 2022 (Credit: John Lamparski/Getty Images)

The Department of Justice indicted Oak View Group chairman and CEO Tim Leiweke on Wednesday for orchestrating a bid-rigging scheme over the management and development of an arena at the University of Texas at Austin.

The longtime executive in live sports and entertainment, who once ran AEG, allegedly conspired with the CEO of an unnamed competitor to emerge as the sole bidder for the purchase of the Moody Center, a multi-purpose entertainment arena used not only by UT Austin but the City of Austin. The purported conspiracy dates back to 2018; the arena opened in 2022.

Leiweke has been charged with a violation of Section 1 of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine. OVG and Legends Hospitality have agreed to pay $15 million and $1.5 million in penalties, respectively, in connection with the conduct alleged in the indictment against Leiweke, but the CEO’s legal team claims the allegations against him are “wrong on the law and the facts” and that the business deal was legal.

“As outlined in the indictment, the Defendant rigged a bidding process to benefit his own company and deprived a public university and taxpayers of the benefits of competitive bidding,” assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division said. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”

Oak View Group announced a “CEO transition” following the indictment, stating that Leiweke will remain a stakeholder in the company but will step down from his CEO post, serving instead as vice chairman of the board. The Board of Directors appointed Chris Granger, president of OVG360, to serve as interim CEO.

“The last thing I want to do is distract from the accomplishments of the team or draw focus away from executing for our partners,” Leiweke said in a statement Wednesday. “The Board and I decided that now is the right time to implement the succession plan that was already underway and transition out of the CEO role.”

The indictment, filed in the U.S. District Court for the Western District of Texas, found that the CEO’s alleged conspiring actions took place from February 2018 to at least June 2024. In February of 2018, Leiweke allegedly reached an agreement with the competitor’s CEO in which the competitor stood down from the bid in exchange for Leiweke and OVG to give the company subcontracts for events held at the arena. OVG was the sole bidder for the development of the Moody Center, which opened to the public in April 2022.

“Unfair business practices, like those employed here, make it very difficult for the American people to pursue prosperity like our founders intended,” U.S. Attorney Justin R. Simmons for the Western District of Texas said. 

Oak View Group responded with a statement Wednesday, stating that the organization has complied with the FBI and Antitrust Division and are “pleased to have resolved this matter with no charges filed against OVG and no admission of fault or wrongdoing.”

“We support all efforts to ensure a fair and competitive environment in our industry and are committed to upholding industry-leading compliance and disclosure practices,” the statement obtained by TheWrap read. “We are proud of the partnerships we’ve built, and remain committed to continuing to offer exceptional hospitality and holistic venue management solutions and venue development expertise which deliver value to our venue partners, fellow service providers and the communities and customers we serve.”

A spokesperson for Leiweke said that the CEO will “vigorously defend himself and his well-deserved reputation for fairness and integrity,” doubling down that the “business partnership” was legal.

“The Antitrust Division’s allegations are wrong on the law and the facts, and the case should never have been brought. The law is clear: vertical, complementary business partnerships, like the one contemplated between OVG and Legends, are legal,” the statement continued. “These allegations blatantly ignore established legal precedent and seek to criminalize common teaming efforts that are proven to enhance competition and benefit the public. The Moody Center is a perfect example, as it has resulted in substantial and sustained benefits to the University of Texas and the City of Austin.”

The Oak View Group owns 400 venues across the globe. Leiweke co-founded the live sports and entertainment group with music mogul Irving Azoff.

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