Tim Leiweke, the founder and CEO of Oak View Group, resigned after a federal indictment accused him of orchestrating a bid-rigging scheme tied to the $338 million Moody Center arena development at the University of Texas at Austin, the Sports Business Journal reported.
The U.S. Department of Justice alleged Leiweke reached an agreement in 2018 with a rival firm, Legends Hospitality, to have Legends stand down from submitting a bid on the project. In exchange, Oak View Group allegedly offered Legends a share of the Moody Center’s business, including concessions and seat licensing, according to internal emails cited in the DOJ’s complaint.
Oak View Group and Legends agreed to pay $15 million and $1.5 million in penalties, respectively, according to the DOJ, though neither company admitted wrongdoing. Oak View Group said it fully cooperated with the DOJ and emphasized that no charges were filed against the company itself. The firm still oversees operations at the Moody Center under a long-term agreement with UT.
Leiweke maintained his innocence, calling the charges “wrong on the law and the facts” and arguing that the partnership between Oak View and Legends was a legal vertical teaming arrangement that ultimately benefited the university and the public.
The DOJ contended that Leiweke’s behind-the-scenes maneuvering violated federal antitrust law. The maximum penalty for bid-rigging is 10 years in prison and a $1 million fine.
The Moody Center, which opened in 2022, has been widely praised and financially successful.
The DOJ often prefers to settle such cases rather than go to trial, antitrust expert George Hay of Cornell told the Denver Business Journal. Negotiations are likely to be underway.
Leiweke’s exit marks a dramatic fall for an influential executive in global sports and entertainment. Oak View Group, headquartered in Denver, has developed some of the world’s most high-profile venues, including Seattle’s Climate Pledge Arena and New York’s UBS Arena.
— Judah Duke
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