Oak View Group CEO Tim Leiweke is stepping down as chief executive officer of the company following his indictment in the US on a conspiracy charge.
The Department of Justice (DOJ) alleges that Leiweke rigged a bid to build and manage Austin’s Moody Centre Arena. He denies the allegation.
Chris Granger, who was president of Oak View Group’s division OVG360, has been appointed as interim CEO
Leiweke, who co-founded OVG with Irving Azoff in 2015, reportedly conspired with another company. CNBC reported that the other company who pulled out of the bid was New York-based Legends Hospitality.
The DOJ said that OVG and Legends Hospitality have agreed to pay $15 million and $1.5 million in penalties, respectively, in connection with the conduct alleged in the indictment against Leiweke.
The maximum penalty for the violation of section one of the Sherman Act is 10 years in prison and a $1 million fine.
“As outlined in the indictment, the Defendant 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, assistant attorney general of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”
Tim Leiweke has denied rigging the bid and said he will prove his innocence.
“As some of you may already know, the DOJ’s Antitrust Division made formal allegations against me today alleging that more than eight years ago I made an improper agreement with Legends during the selection process for the construction and management of the Moody Center at the University of Texas,” Leiweke wrote in an email to staff.
“It is not true, and I am confident that jurors in Austin will see this case for what it is – wrong on the facts and the law and a misguided attempt to criminalise the lawful, ethical, and pro-competitive efforts of complementary businesses joining forces to deliver a compelling proposal.”
Oak View Group, in a statement published by CNBC, said: “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.”
Music Week has requested comment from Legends.
Since its launch a decade ago, Oak View Group has developed multiple venues including UBS Arena in New York, CFG Bank Arena in Baltimore and Co-op Live in Manchester.
