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Tim Leiweke speaks at the ceremonial ribbon cutting prior to tomorrow's opening night for the NHL's newest hockey franchise the Seattle Kraken at the Climate Pledge Arena on October 22, 2021 in Seattle, Washington.
Legal News
Ex-Oak View Group CEO Tim Leiweke Surrenders in Bid-Rigging Case, Pleads Not Guilty
Leiweke was allowed to turn himself in rather than face arrest. He was released on a $1 million bond.
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Tim Leiweke, the live entertainment mogul and former CEO of Oak View Group (OVG), has pled not guilty to rigging bids for the construction of Austin’s Moody Center Arena after self-surrendering in the criminal antitrust case.
Prosecutors allowed Leiweke to turn himself in on Monday (July 21) rather than face arrest for this month’s indictment, which accuses him of conspiring with the former chief executive of Legends Hospitality to rig the bidding for OVG’s construction and management of the $338 million, 19,000-seat Moody Center in 2017.
After surrendering, Leiweke appeared in federal court in Austin and pled not guilty to the single charge of violating the Sherman Antitrust Act. Judge Susan Hightower released Leiweke on a $1 million bond, with orders that he stay in the continental U.S. and hand over his passport.
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Leiweke was until recently the CEO of OVG, which he founded alongside legendary music manager Irving Azoff after leaving his former post as CEO of live music behemoth AEG in 2013.
The Department of Justice’s Antitrust Division alleges in the case that Leiweke made an illegal anticompetitive deal with Legends Hospitality during the bidding for the Moody Center contract. Prosecutors say Leiweke promised to award building subcontracts to Legends if they withdrew plans to bid on the project.
Sources tell Billboard that the DOJ discovered this alleged conspiracy while reviewing the emails of former Legends CEO Shervin Mirhashemi as part of its regulatory probe into the company’s merger with ASM Global last year.
OVG and Legends both reached non-prosecution agreements in the case, stipulating to various facts alleged by the DOJ without admitting to any criminal violations. The two companies agreed to pay respective penalties of $15 million and $1.5 million each and are now cooperating with prosecutors.
Leiweke stepped down as CEO of OVG following the indictment, but he maintained his innocence in an internal staff email announcing the resignation.
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“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.
David Gerger, Leiweke’s lawyer, also denied any wrongdoing in a statement to Billboard on Tuesday (July 22).
“Tim and his team built UT a great arena – and saved the university millions of dollars in the process,” wrote Gerger. “They did that by competition, not crime, and Tim is innocent of these charges.”
Leiweke remains a shareholder of OVG and vice-chair of the company’s board of directors.
This story was updated on July 22 at 4:20 p.m. ET to clarify that Leiweke is accused of conspiring with the former, not current, CEO of Legends Hospitality. It was updated again at 7:40 p.m. ET to clarify the terms of the non-prosecution agreements.
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