Tim Leiweke, the high-profile CEO behind the development of Acrisure Arena in Greater Palm Springs, faces a federal indictment related to an alleged bid-rigging scheme involving the Moody Center at the University of Texas, sending shockwaves through the live sports and entertainment industry.
Leiweke, who has stepped down as Chair and CEO of Oak View Group (OVG), has been charged by the U.S. Department of Justice (DOJ) with orchestrating an illegal agreement with a competing bidder, Legends Hospitality, to ensure OVG secured the contract to develop and manage the $338 million Moody Center. The venue, which opened in 2022, has quickly become one of Austin’s landmark venues.
The indictment, filed in the U.S. District Court for the Western District of Texas, alleges that, from approximately February 2018 through at least June 2024, Leiweke conspired with the Chief Executive Officer of a competitor to rig the bidding for the development, management, and use of a multi-purpose arena that was to be located on the campus of a public university in Austin, Texas (the “Arena Project”).
“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 of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”
“Unfair business practices, like those employed here, make it very difficult for the American people to pursue prosperity like our founders intended,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “In the Western District of Texas, we’re proud to work with our colleagues in the Antitrust Division on these types of cases, and we will do all we can to ensure those who engage in the type of conduct described in this case are held to account.”
“Timothy Leiweke allegedly led a scheme designed to steer the contract for entertainment services at a public university’s arena to his company. Public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field,” said Assistant Director in Charge Christopher G. Raia of the FBI New York Field Office. “The FBI is determined to ensure that those who disregard fair competition principles do not benefit from a rigged bidding process targeting our communities and public institutions.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of corruption and illegal influence in the American workplace,” said Special Agent in Charge Jonathan R. Mellone of the U.S. Department of Labor, Office of the Inspector General, Northeast region. “We will continue to work closely with our law enforcement partners to investigate these types of allegations.”
According to the indictment, in September 2017, Leiweke informed colleagues that he had learned another venue-services company was “bidding against us” for the Arena Project and wanted to “find a way to get [the competitor] some of the business” and “get them to back down.” In November 2017, Leiweke informed others that 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.” 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. 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.
“As outlined in the indictment, the defendant rigged a bidding process to benefit his own company,” stated Abigail Slater, chief of the DOJ’s Antitrust Division, adding that her department will continue to hold accountable executives who circumvent fair competition.
The potential penalties are significant, including up to 10 years in prison and a $1 million fine. OVG has already agreed to pay a substantial $15 million penalty in connection with the allegations, while Legends Hospitality, whose minority owners include the New York Yankees and Dallas Cowboys, agreed to a $1.5 million penalty. Neither company has admitted wrongdoing.
In Greater Palm Springs, Tim Leiweke is best known for spearheading the development of Acrisure Arena, which opened in late 2022 near Palm Desert, quickly becoming a major economic catalyst and entertainment hub in the region. The arena, home to the Coachella Valley Firebirds, has hosted concerts and sports events, significantly raising the region’s profile.
Following Leiweke’s indictment, OVG has swiftly implemented a leadership transition, naming Chris Granger as the interim CEO. Granger previously led OVG360, a division of Oak View Group, and has executive experience with major sports organizations, including the Detroit Tigers and Detroit Red Wings.
In an internal communication, Leiweke categorically denied the charges, calling the DOJ’s allegations a “misguided attempt to criminalize the lawful, ethical, and pro-competitive efforts” of his business practices. Leiweke remains vice chairman of OVG’s board of directors and a shareholder in the company.
OVG, which cooperated fully with the DOJ’s inquiry, emphasized in a statement its ongoing commitment to compliance and transparency: “We are proud of the partnerships we’ve built and remain committed to offering exceptional hospitality and holistic venue management solutions which deliver value to our venue partners, fellow service providers, and the communities and customers we serve.”
Experts, however, warn that the allegations are serious and could result in significant repercussions for Leiweke. In national media reports, Cornell University law professor George Hay characterized bid rigging as “a classic antitrust violation,” suggesting that negotiations between Leiweke’s legal team and the DOJ will likely intensify as both sides seek resolution.
Meanwhile, the Greater Palm Springs community closely watches the developments, mindful of the integral role OVG plays in managing and operating Acrisure Arena, a project widely hailed as transformative for the region’s economy and quality of life, and as the company managing the Plaza Theater in downtown Palm Springs and that has been engaged to take over the management contract for the Palm Springs Convention Center.
