Oak View Group CEO Tim Leiweke is stepping down as CEO of the company he co-founded with Irving Azoff after his indictment on a conspiracy charge for allegedly rigging a bid to build and manage Austin’s Moody Center Arena.
Leiweke, 68, reportedly conspired with another bidder to have that company drop out in exchange for subcontracts at the $388 million arena. CNBC reports that the second company was New York-based Legends Hospitality, and that Leiweke reneged on the subcontracts agreement after that company bowed out of the bidding.
As part of the indictment, Leiweke was charged with a violation of Section 1 of the Sherman Act. According to the Justice Department’s Antitrust Division, the maximum penalty for that offense is 10 years in prison and a $1 million criminal fine.
“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,” said Abigail Slater, assistant attorney general of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”
In the fallout from the indictment, OVG will pay $15 million in penalties while Legends will pay $1.5 million. Under Leiweke’s purview, the company developed several venues including UBS Arena, CFG Bank Arena and Co-op Live. Leiweke said in a message to employees that he would transition from CEO to Vice Chairman and an OVG shareholder. OVG360’s Chris Granger will step in as the new CEO.
Leiweke denied rigging the bid for Moody Center Arena in his note to employees obtained by Billboard. “As some of you may already know, the DOJ’s Antitrust Division made formal allegations against me today alleging that more than eight years ago I made an improper agreement with Legends during the selection process for the construction and management of the Moody Center at the University of Texas,” he wrote.
“It is not true, and I am confident that jurors in Austin will see this case for what it is — wrong on the facts and the law and a misguided attempt to criminalize the lawful, ethical, and procompetitive efforts of complementary businesses joining forces to deliver a compelling proposal.”
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