Oak View Group CEO Tim Leiweke, whose company currently oversees Dallas’ Kay Bailey Hutchison Convention Center and was up until recently responsible for day-to-day operations at Fair Park, was indicted by a federal jury after being accused of rigging the bidding process for a sports arena at the University of Texas in Austin.
The U.S. Department of Justice’s antitrust division announced the indictment Wednesday, and alleged that between 2018 and 2024, Leiweke conspired with the top executive of a competitor to rig the bidding to manage and use the $338 million Moody Center arena.
Assistant Attorney General Abigail Slater said Leiweke conspired to “benefit his own company and deprived a public university and taxpayers of the benefits of competitive bidding.”
A spokesperson for Leiweke said the embattled CEO had “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 statement said. “The law is clear: vertical, complementary business partnerships, like the one contemplated between OVG and Legends, are legal,” adding that the allegations seek to criminalize “common teaming efforts.”
Meanwhile, the Oak View Group released its own statement.
“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,” the company said.
The indictment states Leiweke tried to get a competing venue-services company to back down from bidding against Oak View Group by offering the competitor potential subcontracts. In the end, Oak View Group was the sole applicant.
“Public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field,” Assistant Director in Charge Christopher G. Raia of the FBI New York Field Office said in a news statement.
OVG and Legends Hospitality, which has corporate offices in Frisco, agreed to pay $15 million and $1.5 million in penalties, respectively.
“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,” OVG’s statement said.
“We are proud of the partnerships we’ve built, and remain committed to continuing to offer exceptional hospitality and holistic venue management solutions and venue development expertise which deliver value to our venue partners, fellow service providers, and the communities and customers we serve.”
In 2019,Dallas handed the keys to the convention center to Spectra, which the Oak View Group later acquired.
The same venue management company also took over Fair Park and has been embroiled in controversy over the misspending of $5.7 million in donor funds. Recently, the city terminated its contract with the venue-management company and began a new audit to comb through the park’s finances and see where city dollars and generated revenue were spent.