Tim Leiweke, a driving power behind Ball Enviornment and several other different sports activities and leisure venues across the globe, has stepped down as CEO of Denver-based Oak View Group following a federal grand jury indictment for conspiracy to rig the bidding course of on the Moody Heart on the College of Texas at Austin.
“Timothy Leiweke allegedly led a scheme designed to steer the contract for leisure companies at a public college’s area to his firm. Public contracts are topic to legal guidelines requiring an open and aggressive bid course of to make sure a stage enjoying area,” stated the FBI New York Area Workplace Assistant Director in Cost Christopher G. Raia in a release Wednesday. “The FBI is decided to make sure that those that disregard honest competitors rules don’t profit from a rigged bidding course of focusing on our communities and public establishments.”
The indictment, which was filed within the U.S. District Court docket for the Western District of Texas, alleges that Leiweke, from early 2018 via June of final 12 months, conspired with a competitor to rig the bidding for the event, administration and use of the world, which opened its doorways in April 2022.
In September 2017, Leiweke is alleged to have informed colleagues that he realized a competitor, Legends Hospitality, was going to bid towards Oak View on the College of Texas mission and that he needed to discover a strategy to funnel enterprise to the rival agency to “get them to again down.”
By February 2018, Leiweke and his rival CEO allegedly reached an settlement the place Legends wouldn’t submit a bid in return for receiving subcontracts, in response to the indictment. That allowed Oak View to submit the only certified bid, leading to an ongoing and important income stream, in response to the Division of Justice.
Oak View and Legends Hospitality, based mostly in New York, have agreed to pay $15 million and $1.5 million in penalties, respectively, in reference to the conduct alleged within the indictment towards Leiweke, in response to the DOJ. Legends Hospitality and its CEO weren’t indicted.
“Oak View Group cooperated absolutely with the Antitrust Division’s inquiry and is happy to have resolved this matter with no costs filed towards OVG and no admission of fault or wrongdoing. We assist all efforts to make sure a good and aggressive setting in our {industry} and are dedicated to upholding industry-leading compliance and disclosure practices,” the company said in a statement.
Leiweke is stepping down as CEO of the corporate he co-founded, however will keep on as vice chairman of the board of administrators and stay a shareholder. Chris Granger, president of OVG 360, will function interim CEO. Granger, earlier in his profession, was president of the Detroit Tigers, Detroit Pink Wings and the Sacramento Kings.
“It has been my nice honor to assist discovered and lead OVG because it has grown into the particular, customer-oriented firm it’s at the moment. Whereas I’m happy the corporate has resolved its Division of Justice Antitrust Division inquiry with none costs filed or admission of wrongdoing, the very last thing I need to do is distract from the accomplishments of the staff or draw focus away from executing for our companions, so the Board and I made a decision that now’s the correct time to implement the succession plan that was already underway and transition out of the CEO position,” Leiweke stated in a company statement.
In a press release to CNBC, spokesman for Leiweke stated, “Mr. Leiweke has achieved nothing unsuitable and can vigorously defend himself and his well-deserved popularity for equity and integrity.”
“The Antitrust Division’s allegations are unsuitable on the legislation and the information, and the case ought to by no means have been introduced,” the spokesman continued to CNBC. “The legislation is obvious: vertical, complementary enterprise partnerships, just like the one contemplated between OVG and Legends, are authorized.”
Whereas president of the Denver Nuggets within the early Nineties, Leiweke confirmed an inherent ability for area planning. In 1994, he introduced plans for a brand new multi-team venue and dealt with early negotiations with town on a public-private enterprise and web site location, which finally resulted within the Pepsi Heart, now Ball Enviornment, in 1999.
He’s additionally credited with enjoying a key half in serving to carry the Quebec Nordiques, the long run Colorado Avalanche, to Denver. Leiweke left the Nuggets in 1995 to work with Anschutz Leisure Group, changing into president and CEO the next 12 months, a job he held till March 2013.
He oversaw the development of the Staples Heart in Los Angeles, which serves as house to the Lakers, Kings and Sparks, and a associated leisure district known as L.A. Stay. He was additionally behind the O2 Enviornment in London, the Microsoft Theater in L.A. and the Dignity Well being Sports activities Park, a soccer stadium in Carson, Calif.
Oak View Group, which Leiweke co-founded in November 2015, employs greater than 50,000 individuals, managing and offering companies to 400 arenas across the globe. It additionally has $5 billion dedicated to new area developments, in response to the corporate’s web site.
Oak View’s mission portfolio consists of the Local weather Pledge Enviornment for the NHL’s Kraken in Seattle; the usArena for the New York Islanders in Elmont, N.Y., the Complete Mortgage Enviornment in Bridgeport, Conn., and Co-Op Stay in Manchester, England, a music and sports activities venue slated to grow to be the most important in Europe as soon as accomplished.
Leiweke relocated Oak View to Denver final summer season. Though he has an affinity for Denver, the place he spent a very good a part of his profession, the transfer additionally would have put his firm in a stronger place to bid on any new stadium that the Denver Broncos could be contemplating.
Leiweke is charged with a violation of Part 1 of the Sherman Act and faces a most penalty of 10 years in jail and a $1 million felony superb, which might be elevated to twice the achieve derived or twice the loss suffered by victims, in response to the Division of Justice.
Initially Printed:
