CEO Accused of Bid Rigging in University of Texas Arena Construction Project

Tim Leiweke, the CEO of Oak View Group, has been indicted on federal conspiracy charges linked to allegedly manipulating a bid for the development, management, and operation of the University of Texas basketball and entertainment arena in Austin. The Department of Justice revealed this information on Wednesday.

As a result of the allegations, Oak View Group has agreed to pay $15 million in penalties and announced that Leiweke would shift from his role as CEO to vice chairman of the company’s board while still retaining his position as a shareholder. The indictment claims that Leiweke conspired with a rival bidder in February 2018 regarding UT’s $338 million Moody Center project.

This alleged conspiracy involved persuading the competing company to withdraw its bid in return for receiving attractive subcontracts at the 15,000-seat arena. Reports indicate that the competing bidder was Legends Hospitality, a New York-based venue services firm part-owned by Sixth Street Partners, with minority stakes held by the New York Yankees and the Dallas Cowboys.

The Department of Justice outlined that Leiweke later failed to honor the agreement after Legends exited the bidding competition. The Moody Center opened to the public in April 2022, and Oak View Group continues to reap significant revenues from the project.

Assistant Attorney General Abigail Slater remarked that Leiweke rigged the bidding process, undermining competitive bidding that benefits both the university and taxpayers. Leiweke’s spokesperson maintained his innocence, asserting that he would fight to preserve his reputation for fairness and integrity.

The spokesman also criticized the Antitrust Division’s allegations as both legally and factually incorrect. In response to the situation, Oak View Group expressed satisfaction in resolving the inquiry without charges against the company, emphasizing their commitment to upholding strong compliance practices.

Chris Granger, the former president of OVG360, has been appointed as the interim CEO.