Tim Leiweke, CEO of Oak View Group and co-owner of Climate Pledge Arena, was indicted Wednesday by the U.S. Department of Justice on federal bid-rigging charges related to the construction of the Moody Center at the University of Texas. Leiweke stepped down as CEO effective immediately.
Oak View Group co-owns and operates Climate Pledge Arena with Seattle Hockey Partners, the ownership group of the Seattle Kraken.
The Department of Justice alleges Leiweke conspired with Legends Hospitality to rig the bidding process for the University of Texas arena project in 2018. According to prosecutors, Leiweke agreed with Legends CEO that Legends would not submit a competing bid for the arena contract in exchange for receiving subcontract work on the project.
Legends did not submit a competing bid, and OVG submitted the only qualified bid, winning the contract for what became the Moody Center, which opened in 2022. The indictment alleges Leiweke then did not provide Legends with the promised subcontract work.
Oak View Group agreed to pay a $15 million penalty to resolve the matter. Legends Hospitality agreed to pay $1.5 million. Neither company admitted wrongdoing as part of their settlements.
Leiweke faces up to 10 years in prison and a $1 million fine if convicted. He is charged with one violation of Section 1 of the Sherman Antitrust Act.
Chris Granger, president of OVG360, has been appointed interim CEO of Oak View Group. Leiweke will serve as vice chairman of the board of directors and remain a shareholder.
Oak View Group issued a statement saying the company “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.”
A spokesperson for Leiweke stated: “Mr. Leiweke 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 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 example, as it has resulted in substantial and sustained benefits to the University of Texas and the City of Austin.”
Leiweke also said in his own statement: “While I’m pleased the company has resolved its Department of Justice Antitrust Division inquiry without any charges filed or admission of wrongdoing, the last thing I want to do is distract from the accomplishments of the team or draw focus away from executing for our partners, so the Board and I decided that now is the right time to implement the succession plan that was already underway and transition out of the CEO role.”
Tim Leiweke previously served as CEO of Anschutz Entertainment Group and co-founded Oak View Group in 2015 with Irving Azoff. Tod Leiweke, Tim’s brother, serves as CEO of the Seattle Kraken.
Climate Pledge Arena opened in October 2021 as home to the Seattle Kraken and Seattle Storm. The arena was built through a $1.15 billion private redevelopment of the former KeyArena.