Oak View Group CEO Steps Down Following Federal Bid-Rigging Indictment
A federal grand jury on Wednesday indicted Timothy J. Leiweke, co-founder and CEO of Oak View Group (OVG), for allegedly orchestrating a bid-rigging scheme tied to the University of Texas's Moody Center arena.
The OVG Group is a U.S.-based global advisory, development, and investment company specializing in the sports and live entertainment industries. It has managed the Moody Center through its OVG360 division since it opened in 2022.
The U.S. Department of Justice's (DOJ) Antitrust Division alleges that from February 2018 to at least June 2024, Leiweke conspired with the CEO of a competitor to manipulate the bidding process for the project.
Prosecutors say Leiweke made an agreement with the competitor to withdraw their bid for the arena contract in exchange for subcontracts for concessions and premium seating sales. The deal made OVG the only qualified bidder for the project.
The Moody Center opened in 2022 under OVG management as the home venue for University of Texas basketball and other events.
Assistant Attorney General Abigail Slater said Leiweke "rigged a bidding process to benefit his own company and deprived a public university and taxpayers of the benefits of competitive bidding." She added that the DOJ would "hold executives who cheat to avoid competition accountable."
OVG and Legends Hospitality have effectively controlled the convention center and sporting arena management market since Legends acquired ASM Global in August.
Leiweke is charged with violating Section 1 of the Sherman Antitrust Act, which carries a maximum penalty of 10 years in prison and a $1 million fine if convicted.
OVG agreed to pay $15 million in penalties and Legends $1.5 million, though neither company admitted wrongdoing. No charges were filed against OVG.
In response to the indictment, OVG released the following statement: '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. We are proud of the partnerships we've built, and remain committed to continuing to offer exceptional hospitality and holistic venue management solutions and venue development expertise which deliver value to our venue partners, fellow service providers, and the communities and customers we serve.'
Legends did not immediately respond to a request for comment.
Leiweke stepped down as CEO, and Chris Granger, president of OVG360, will serve as interim CEO overseeing the company's 400-venue portfolio. Granger joined in 2021 after leadership roles with the NBA and various sports teams.
In February, OVG lost the management of Chicago's McCormick Place, the largest convention center in North America. OVG continues to manage the facility's food and beverage.
The charges come amid OVG's efforts to reshape its image. The company recently changed its mission statement from "We are DISRUPTORS..." to "We're in the business of making Big things happen," according to archived versions of its website.
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