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18h ago

DOJ Indicts Tim Leiweke for Rigging UT’s Moody Center Arena Bid

Oak View Group and Legends Hospitality settled DOJ penalties for $16.5 million, with Leiweke stepping away from the CEO post

The Moody Center, home of the Texas Longhorns, in Austin, Texas, on December 1, 2022.
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Overview

  • Tim Leiweke was indicted on July 9 by a federal grand jury for one count of conspiracy under Section 1 of the Sherman Antitrust Act, facing up to 10 years in prison and a $1 million fine.
  • The Justice Department alleges Leiweke struck a 2018 deal with Legends Hospitality to suppress competitive bids for the $338 million Moody Center project in exchange for subcontracts and later reneged on that promise.
  • Oak View Group and Legends Hospitality agreed to pay $15 million and $1.5 million respectively to resolve the DOJ inquiry without admitting wrongdoing.
  • Leiweke transitioned from CEO to vice chairman of Oak View Group following the indictment, and Chris Granger was named interim CEO by the board.
  • Leiweke’s legal team contends the arrangements were lawful vertical partnerships and plans to mount a vigorous defense against the antitrust charges.