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Oak View Group CEO Tim Leiweke has been indicted on a federal criminal conspiracy charge related to his alleged role in rigging the bidding to develop, manage and operate the University of Texas’ basketball arena in Austin.
Leiweke, 68, is accused in the indictment of conspiring with another would-be bidder on the $338 million Moody Center arena project to induce that second company to drop out of the competition with Oak View Group in exchange for receiving lucrative sub-contracts at the arena.
Oak View Group CEO Tim Leiweke attends the groundbreaking ceremony for the new University of Texas event facility, the “Moody Center” on December 3, 2019 in Austin, Texas.
Gary Miller | Getty Images
The indictment says Leiweke later reneged on that promise to the other company after it dropped its effort to bid on the entire project.
CNBC has reached out to Oak View Group for comment.
Oak View Group’s website says the company manages 400 sports, entertainment and other venues.
FILE PHOTO: An overall view of the Moody Center, home of the Texas Longhorns, in Austin, Texas on December 1, 2022.
Porter Binks | Getty Images
Lewieke is the former CEO of Maple Leaf Sports and Entertainment. Before that, he served as CEO of Anschutz Entertainment Group.
Two people familiar with the matter told CNBC that the Department of Justice’s antitrust division is expected to announce two non-prosecution agreements in connection with the case with Oak View Group and Legends Hospitality.
Oak View is expected to pay a $15 million penalty, and Legends Hospitality is expected to pay a $1.5 million penalty, according to those people.
A spokesman for Leiweke, in a statement to CNBC, 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 spokesman said. “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, in a statement, said, “Oak View Group 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,” Oak View Group said.
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