Tim Leiweke, one of the most accomplished CEOs in the live entertainment and facilities business, announced today that he is stepping down as CEO of Oak View Group (OVG) after being indicted by the Department of Justice’s Antitrust Division for bid-rigging related to the company’s 2017 contract to build the Moody Center Arena in Austin.

On Wednesday (July 9), a federal grand jury in the U.S. District Court for the Western District of Texas returned an indictment against Leiweke, alleging he orchestrated a “conspiracy to rig the bidding process for an arena at a public university in Austin, Texas.” Authorities say Leiweke conspired with the chief executive of Legends Hospitality to rig the bidding for the construction and management of Austin’s $338 million, 19,000-seat Moody Center.

“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 Oak View Group’s employees on Wednesday.

“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 criminalize the lawful, ethical, and procompetitive efforts of complementary businesses joining forces to deliver a compelling proposal,” Leiweke wrote.

“I have agreed with our Board of Directors that now is the right time to implement the succession plan that was already underway and transition from my role as CEO,” Leiweke continued. “I will continue to serve on our Board of Directors in the role of Vice-Chairman and will remain a shareholder of OVG.” 

Chris Granger, president of OVG360, will serve as Interim CEO.  

“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 assistant attorney general Abigail Slater in a press release. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”

U.S. attorney Justin R. Simmons for the Western District of Texas added, “Unfair business practices, like those employed here, make it very difficult for the American people to pursue prosperity like our founders intended,” before noting, “we will do all we can to ensure those who engage in the type of conduct described in this case are held to account.”

According to the indictment, Leiweke had planned to bid on the contract to build the replacement for the University of Texas’ Frank Erwin Center in late 2017 when he learned that Legends Hospitality was also bidding on the job. According to the indictment, Leiweke wanted to “find a way to get [the competitor] some of the business” and “get them to back down,” and allegedly told colleagues he was “[m]ore than happy talking to [the competitor] about not bidding and [receiving certain subcontracts]” but had “no interest in working with them if they intend on putting in a bid.”

Sources tell Billboard that OVG and Legends originally submitted a joint bid to build and operate the Moody Center, but that Legends eventually dropped off.

“In February of 2018, Leiweke ultimately reached an agreement with the competitor’s CEO, pursuant to which the competitor agreed that it would stand down and neither submit nor join an independent competing bid for the Arena Project,” a press release from the government reads. “In exchange for the competitor’s agreement to stand down, Leiweke represented that the competitor would receive Arena Project’s subcontracts. Consistent with the bid-rigging agreement, the competitor did not submit a competing bid for the Arena Project. OVG ultimately submitted the sole qualified bid and won the Arena Project. The arena opened to the public in April 2022, and OVG continues to receive significant revenues from the project to date.”

OVG has already agreed to pay a $15 million penalty at the behest of the Department of Justice, while Legends agreed to pay $1.5 million. Leiweke is charged with a single violation of Section 1 of the Sherman Act, which carries a maximum penalty of ten years in prison and a $1 million fine.

In his letter to staff, Leiweke acknowledged that OVG did reach a settlement with the DOJ, writing, “I am pleased that the company fully resolved those inquiries with no admission of fault or wrongdoing whatsoever. I am very grateful that OVG and all of you, who have worked so hard to build this Company, are free to continue our industry-leading work.”