Oak View Group CEO Tim Leiweke has been indicted on a federal criminal conspiracy charge related to his alleged role in rigging the bidding to develop, manage and operate the University of Texas’ basketball arena in Austin.
Leiweke, 68, is accused in the indictment of conspiring with another would-be bidder on the Moody Center arena project to induce that second company to drop out of the competition with Oak View Group in exchange for receiving lucrative sub-contracts at the arena.
Oak View Group CEO Tim Leiweke attends the groundbreaking ceremony for the new University of Texas event facility, the “Moody Center” on December 3, 2019 in Austin, Texas.
Gary Miller | Getty Images
The indictment says Leiweke later reneged on that promise to the other company after it dropped its effort to bid on the entire project.
CNBC has reached out to Oak View Group for comment.
Lewieke is the former CEO of Maple Leaf Sports and Entertainment. Before that, he served as CEO of Anschutz Entertainment Group.
Two people familiar with the matter told CNBC that the Department of Justice’s antitrust division is expected to announce two non-prosecution agreements in connection with the case with Oak View Group and Legends Hospitality.
Oak View is expected to pay a $15 million penalty, and Legends Hospitality is expected to pay a $1.5 million penalty, according to those people.
FILE PHOTO: An overall view of the Moody Center, home of the Texas Longhorns, in Austin, Texas on December 1, 2022.
Porter Binks | Getty Images
This is breaking news. Please refresh for updates.
