Ticketmaster Payments to OVG Exposed Amid Tim Leiweke Indictment in Bid-Rigging Scandal

Documents recently unveiled due to the indictment of Tim Leiweke, the former CEO of Oak View Group (OVG), expose a controversial payment arrangement between OVG and Ticketmaster. Federal investigations uncovered that OVG accepted upfront and annual payments from Ticketmaster to persuade venues to sign or maintain exclusive ticketing deals with them. In November 2022, Ticketmaster wired OVG $20 million initially and committed to annual payments of $7 million thereafter. The disclosure arose from OVG's July 9 non-prosecution agreement with the U.S. Department of Justice, which stated that OVG360, OVG's venue-management arm, encouraged its clients to engage with Ticketmaster without revealing the financial incentive involved to venue owners.

Leiweke’s indictment centers around alleged bid-rigging in relation to the Moody Center project at the University of Texas. It is claimed that he orchestrated a conspiracy to ensure OVG would win the bid to construct the arena, reportedly aligning with Legends Hospitality by agreeing to trade lucrative subcontracts for dropping competitive bids. Following the indictment, Leiweke resigned as CEO amidst court accusations of his involvement in bid-rigging, although he retains a position as vice chair of OVG’s board.

These revelations only came to light after antitrust lawyers involved in the review of Legends Hospitality’s proposed acquisition of ASM Global uncovered relevant email exchanges. The correspondence detailed the arrangement with Ticketmaster, providing critical evidence in the broader civil antitrust lawsuit against Live Nation, Ticketmaster’s parent company. While neither OVG nor Leiweke are formal defendants in this case, the indictment emphasizes how OVG's actions could bolster claims about Live Nation maintaining market dominance through anticompetitive practices.

OVG's non-prosecution agreement with the Department of Justice entailed a $15 million penalty, with Legends agreeing to pay $1.5 million. This came as part of broader efforts to fully cooperate with ongoing investigations into business conduct and resulted in commitments to make key executives available for testimony, although this excludes Francesca Bodie, OVG’s chief operating officer and Leiweke’s daughter.

The developments have significant implications for OVG's reputation and business operations. In Corpus Christi, Texas, city leaders are reconsidering their contractual relationship with OVG360, which manages the American Bank Center, due to the legal allegations against Leiweke. Concerns were voiced over whether decisions were impacted by undisclosed financial arrangements with Ticketmaster, leading to considerations of terminating agreements, despite potential costs extending into millions.

Similarly, in Baton Rouge, stakeholders involved in the Louisiana State University (LSU) arena project are conducting a review in light of OVG's involvement, causing uncertainty about potential agreements and future collaborations.

The fallout from these revelations continues to reverberate across various project sites managed by OVG. This includes venues such as San Diego State’s Snapdragon Stadium — where a partnership persists with OVG despite leadership changes — raising questions about the integrity and transparency of operations linked to venues under OVG's purview.

OVG’s ongoing collaboration, as well as future projects like the LSU arena, remain under scrutiny as stakeholders weigh the impact of these investigations. With revelations of secret incentives provided to align venues with Ticketmaster, the legitimacy of recommendations made by OVG is under critical examination by venue owners and officials alike, probing whether decisions were influenced by service quality or undisclosed financial interests.

This situation has stirred a broader conversation about the ethical practices within the industry, as legislative and corporate entities explore the extent of influence exerted by major players like Ticketmaster and Live Nation in shaping the competitive dynamics of venue management and event ticketing.