The Justice Department 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 Live Sports and Entertainment executive, 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.
Leiweke was charged with violating Section 1 of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine. OVG Hospitality and Legends Hospitality agreed to pay $15 million and $1.5 million in fines, 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 as to law and fact” and that the business arrangement was legal.
“As described 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,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will continue to hold accountable executives who cheat to prevent responsible competition.”
The indictment, filed in the U.S. District Court for the Western District of Texas, found that the CEO’s alleged conspiratorial actions occurred from February 2018 to at least June 2024. In February 2018, Leiweke allegedly reached a contract with the CEO of a competitor and the competitor that Leiweke’s competitor had contracted with, which referred to the Leiweke tender. OVG was the sole bidder for the Moody Center development, which opened to the public in April 2022.
“Unfair trade practices, like those employed here, make it very difficult for the American people to pursue prosperity as our Founding Fathers intended,” said U.S. Attorney Justin R. Simmons for the Western District of Texas.
Oak View Group responded with a statement Wednesday, saying the organization has complied with the FBI and the antitrust division and is “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 lia read. “We are proud of the partnerships we have built and remain committed to continuing to deliver exceptional hospitality and holistic venue management solutions and venue development expertise that deliver value to our venue partners, service colleagues, and the communities and clients we serve.”
A Leiweke spokesperson said in a statement that the CEO “will vigorously defend himself and his well-deserved reputation for fairness and integrity,” doubling down on the fact 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 filed. The law is clear: vertical and complementary business partnerships, like the one contemplated between OVG and the legends, are legal,” the statement continued. “These allegations blatantly ignore established legal precedent and seek to criminalize joint efforts by teams that are demonstrably improving competition and benefiting the public. The Moody Center is a perfect example, as it has resulted in substantial and sustained benefits for the University of Texas and the City of Austin.”
Oak View Group has 400 venues worldwide. Leiweke co-founded the sports and live entertainment group with music mogul Irving Azoff.
