Federal prosecutors charged Timothy Leiweke, the chief executive officer of Oak View Group, with violating antitrust laws by rigging the bidding process for UT’s $375 million Moody Center. If convicted, Leiweke faces up to 10 years in prison and a $1 million fine.
The charges stem from a scheme, which prosecutors say began in 2018, to pressure a competing company, referred to in
court documents
filed by the Department of Justice as “Company A,” to withdraw from the bidding process in exchange for subcontracts, enabling OVG to secure exclusive control over the arena’s development, management and operations. Though the Justice Department did not name the “arena at a public university in Austin, Texas,” the Moody Center is the only venue under the company’s management in Austin,
according to its website.
OVG was the sole company to submit a qualified bid for the project and secured the contract to develop and operate the Moody Center in 2019. The Moody Center opened to the public in 2022 and has since hosted UT’s women’s and men’s basketball teams as well as professional basketball games. The center has also hosted concerts for famous musicians like Olivia Rodrigo and Madonna.
University spokesperson Mike Rosen declined to comment on the charges.
Although Leiweke himself faces charges, the Justice Department said it would not pursue action against the company OVG in exchange for the company’s cooperation, but the company said it agreed to pay $15 million as part of an agreement with the Justice Department. OVG also said Leiweke will be replaced as CEO of the company, but Leiweke said he will remain involved in the company as vice chairman of the board.
“It has been my great honor to help found and lead OVG as it has grown into the special, customer-oriented company it is today,” Leiweke said in a news release. “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.”
Public contracts are subject to laws that ensure a fair and open bidding process to guarantee competition, according to the department’s release. Prosecutors said Leiweke’s actions restricted that competition and violated the Sherman Antitrust Act. According to the American Bar Association, prosecutors will have to prove Leiweke engaged in a conspiracy to “unreasonably” restrict trade if they want to convict him.
“As outlined in the indictment, (Leiweke) 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, in a news release. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”
