Oak View Group Co-Founder Faces 10 Years in Prison for Bid Rigging

Timothy Leiweke, co-founder of Oak View Group (OVG), is facing a decade in prison following an indictment returned on Wednesday. Leiweke is accused of conspiring with the CEO of competitor Legends Hospitality to secure a $338 million arena project for the University of Texas at Austin. The project, known as the Moody Center, is a 15,000-seat venue that hosts various sporting events and musical performances.

According to the Department of Justice, Leiweke allegedly sought ways to eliminate competition from OVG’s rival in 2017. In February 2018, Leiweke allegedly struck a deal with the unnamed CEO of Legends Hospitality, where Legends agreed to withdraw from bidding for the project in exchange for subcontracts from OVG. This left OVG as the sole bidder for the development contract, a practice officials termed as "bid rigging." The arena, which opened in 2022, continues to generate significant revenues for OVG.

Leiweke has been charged with violating Section 1 of the Sherman Act, which prohibits bid rigging. The maximum penalty for this offense is 10 years in prison and a $1 million criminal fine, although it could be increased to twice the gain from the alleged crime or twice the losses suffered by victims if either is greater than the statutory maximum. The criminal penalty for a corporation is up to $100 million. OVG has agreed to pay $15 million in penalties, while Legends Hospitality will pay $1.5 million, both in connection with the conduct alleged in the indictment against Leiweke.

Assistant director in charge of the FBI’s New York field office Christopher G. Raia stated, “Timothy Leiweke allegedly led a scheme designed to steer the contract for entertainment services at a public university’s arena to his company. Public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field. The FBI is determined to ensure that those who disregard fair competition principles do not benefit from a rigged bidding process targeting our communities and public institutions.”

In response to the allegations, Leiweke’s spokesperson asserted that the veteran executive had “done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity.” The spokesperson further argued that the Antitrust Division’s allegations were wrong on both the law and the facts, and that the case should never have been brought. They emphasized that vertical, complementary business partnerships, like the one contemplated between OVG and Legends, are legal and enhance competition and benefit the public.

On Wednesday, OVG announced that Leiweke would relinquish the CEO role and transition into a vice chairman role on the board. The company, founded in 2015 by Leiweke and Irving Azoff, is the largest developer of sports and live entertainment venues worldwide. OVG has 30,000 employees across hundreds of venues and has committed more than $5 billion to developing new arenas in the next three years.

Leiweke expressed his commitment to the long-term success of the company in his new role as Vice Chairman of the Board and as an OVG shareholder. He stated that he was pleased the company resolved the DOJ’s inquiry without any charges or admission of wrongdoing. Leiweke also mentioned that the last thing he wanted to do was distract from the accomplishments of the team or draw focus away from executing for their partners.

OVG stated that it cooperated fully with the DOJ’s inquiry and is pleased the matter has been resolved with no charges against OVG. The company supports all efforts to ensure a fair and competitive environment in the industry and is committed to upholding industry-leading compliance and disclosure practices. Legends Hospitality did not immediately respond to a request for comment.