Oak View Group CEO Tim Leiweke has been charged with rigging the bidding process for the University of Texas' Moody Arena in Austin.
According to CNBC, the federal criminal conspiracy charge has already resulted in Oak View Group agreeing to pay $15 million in penalties, and the firm said Leiweke will move from CEO to vice chairman of the board, where he will remain a shareholder.
Oak View Group CEO Tim Leiweke has been charged with rigging the bidding process for the University of Texas' Moody Arena in Austin.Â
According to CNBC, the federal criminal conspiracy charge has already resulted in Oak View Group agreeing to pay $15 million in penalties, and the firm said Leiweke will move from CEO to vice chairman of the board, where he will remain a shareholder.Â
Leiweke is accused of conspiring with another would-be bidder on UT’s $338 million Moody Center arena to induce that second company, Legends Hospitality, in February 2018 to drop out of the competition with Oak View Group in exchange for receiving lucrative subcontracts at the 15,000-seat arena.
The indictment alleges that Leiweke later reneged on that promise to the second company after it dropped its effort to bid on the entire project.
“The arena opened to the public in April 2022, and OVG continues to receive significant revenues from the project to date,” the DOJ said Wednesday.
The DOJ confirmed that Oak View Group and Legends have agreed to pay $15 million and $1.5 million, respectively, in penalties.Â
Oak View currently manages around 400 sports and entertainment venues around the world.Â
Lewieke is charged with one count of conspiracy to restrain trade, and if convicted he faces a maximum possible sentence of 10 years in prison and a $1 million fine.
“The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine,” the DOJ said.
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.”
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