Photo Credit: Mitchell Kmetz
The DOJ has indicted Oak View Group CEO Tim Leiweke in an alleged scheme to rig bidding at Austin’s Moody Center.
The Justice Department has indicted Oak View Group CEO Tim Leiweke, a veteran executive in live sports and entertainment who once helmed AEG. Leiweke was charged with antitrust violations in an alleged scheme to rig the bidding process at a public Texas arena.
According to the indictment, Leiweke orchestrated efforts to force a rival to stand down on a bid for an arena contract beginning in 2018 in exchange for subcontracts. The arena involved, the Moody Center at the University of Texas at Austin, opened its doors in 2022. Leiweke cofounded Oak View with Irving Azoff in 2015; Azoff has not been mentioned in the DOJ’s indictment.
Leiweke was charged with a violation of Section 1 of the Sherman Antitrust Act, which carries a maximum penalty of 10 years in prison and a $1 million fine. Oak View has agreed to pay $15 million in penalties, while Legends Hospitality, in connection with conduct alleged in the indictment, has agreed to pay $1.5 million.
“As outlined in the indictment, [Leiweke] 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, chief of the DOJ’s Antitrust Division. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”
Meanwhile, a spokesperson for Leiweke said he “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 spokesperson’s statement continued. “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 sample, as it has resulted in substantial and sustained benefits to the University of Texas and the City of Austin.”
Just after the indictment was made public, Oak View Group announced that Leiweke will step down from his role as CEO and will become vice chairman of the board of directors. He will remain a shareholder of the company. President of OVG360, Chris Granger, has been appointed by the board as interim CEO.
According to an Oak View Group spokesperson, they “cooperated fully with the Antitrust Division’s inquiry and [are] 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.”
Notably, the statement did not address Leiweke’s indictment.
Content shared from www.digitalmusicnews.com.