Entertainment
UPDATED with Leiweke statement: The Justice Department indicted Oak View Group CEO Tim Leiweke, a longtime executive in live sports and entertainment who once ran AEG, in an alleged scheme to rig the bidding process at a public arena in Texas.
Leiweke was charged with a violation of Section 1 of the Sherman Antitrust Act. It carries a maximum penalty of 10 years in prison and a $1 million fine.
According to the indictment, starting in 2018, Leiweke orchestrated an effort to get a rival to stand down on a bid for the arena contract in exchange for gaining subcontracts. The arena, the Moody Center at the University of Texas at Austin, opened in 2022.
OVG has agreed to pay $15 million in penalties, while Legends Hospitality has agreed to pay $1.5 million, in connection with their conduct alleged in the indictment, the Justice Department said.
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Abigail Slater, chief of the DOJ’s Antitrust Division, said in a statement: “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. The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”
A spokesperson for Leiweke said: “Mr. Leiweke has done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity. 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. 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.”
Oak View Group announced that Leiweke will leave his role as CEO and will become vice chairman of the board of directors, and will remain a shareholder of the company. Chris Granger, president of OVG360, was appointed by the board as interim CEO.
An Oak View Group spokesperson said that they “cooperated fully with the Antitrust Division’s inquiry 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 did not address Leiweke’s indictment.
Leiweke was the former CEO of Anschutz Entertainment Group, and later became the CEO of Maple Leaf Sports and Entertainment. He and Irving Azoff’s Azoff ASG Entertainment launched Oak View Group in 2015.
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Ted Johnson