Amid disturbing revelations that have emerged about the top pick to develop a new $400 million arena for Louisiana State University, stakeholders plan a “due diligence review” to determine the future status of the project.
As reported by Greater Baton Rouge Business Report, a statement from LSU athletics spokesman Zach Greenwell Thursday afternoon said all involved parties “are evaluating the implications on the potential arena project in Baton Rouge considering this week’s news regarding Oak View Group.”
Amid disturbing revelations that have emerged about the top pick to develop a new $400 million arena for Louisiana State University, stakeholders plan a “due diligence review” to determine the future status of the project.
As reported by Greater Baton Rouge Business Report, a statement from LSU athletics spokesman Zach Greenwell Thursday afternoon said all involved parties “are evaluating the implications on the potential arena project in Baton Rouge considering this week’s news regarding Oak View Group.”
Although LSU athletic director Scott Woodward had identified OVG as the finalist to develop LSU’s arena in a speech at the Southeastern Conference’s annual spring meeting in May, Greenwell emphasized that no finalized agreement is in place with the company, “nor has a potential agreement gone before any governing bodies for approval, including the LSU Board of Supervisors,” according to the Report's Penny Font.
It came to light this week that Tim Leiweke, former CEO of the Denver-based development firm Oak View Group,  has been indicted by the U.S. Department of Justice. He’s accused of participating in a “bid-rigging scheme” tied to the development of the Moody Center in in Austin, Texas.
Related: Report: Oak View Group CEO Charged With Bid-Rigging UT's Moody Arena Project
According to separate coverage by Greater Baton Rouge Business Report, Oak View Group is a central figure in a U.S. Department of Justice civil antitrust lawsuit the Justice Department brought against Live Nation and its subsidiary, Ticketmaster, alleges that Live Nation and Ticketmaster exercise monopolistic power over performers, venues and independent promoters in ways that harm competition, forcing fans to pay more for tickets. Oak View Group is not a defendant in the case, though it is represented by three attorneys from Milbank LLP as an interested party in the proceedings, according to the Report.
In that case, federal court filings allege OVG was a “a potential competitor-turned-partner" that described itself as a “pimp,” “hammer” and “protector” for Live Nation, Font reported. The complaint alleges that in recent years, Oak View Group “has avoided bidding against Live Nation for artist talent and influenced venues to sign exclusive agreements with Ticketmaster.
Ellen Davis of August Strategic Communications, a spokesperson for Leiweke, contends the executive in that case has “done nothing wrong” and will “vigorously defend himself and his well-deserved reputation for fairness and integrity.”Â
