Oak View Group previously managed Fair Park, the home of the State Fair of Texas.
DALLAS — The co-founder and CEO of Oak View Group, the private company that formerly managed Fair Park in Dallas, has been indicted for allegedly orchestrating a conspiracy to rig the bidding process to develop the Moody Center in Austin, officials announced.
The CEO of the Denver-based professional sports and real estate company, Timothy J. Leiweke, was indicted for allegedly orchestrating a conspiracy to rig the bidding process for the arena, federal officials announced. Our content partner, KVUE, reports that the arena is the $338 million Moody Center.
The indictment alleges Leiweke conspired with the CEO of a competitor from about February 2018 through at least June 2024 to rig the bidding for the development, management, and use of the arena, according to a press release.
“Timothy Leiweke allegedly led a scheme designed to steer the contract for entertainment services at a public university’s arena to his company,” said Assistant Director in Charge Christopher G. Raia of the FBI New York Field Office. “Public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field. 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.”
Leiweke allegedly told colleagues in Sept. 2017 that he’d found out another venue-services company was bidding against them for the arena project and he wanted to “find a way to get [the competitor] some of the business” and “get them to back down,” a press release states.
In exchange for agreeing to stand down, Leiweke indicated that the competitor would get subcontracts for the project, a press release states.
Consistent with the agreement, the competitor didn’t submit a competing bid for the arena, officials say. OVG ultimately submitted the sole qualified and winning bid for the arena, officials say.
The arena opened in April 2022, and OVG continues to receive “significant revenues from the project to date,” according to a press release.
OVG and Legends Hospitality agreed to pay $15 million and $1.5 million in penalties, respectively, in connection with the conduct alleged in the indictment against Leiweke, officials say.
If convicted, Leiweke faces a maximum penalty of 10 years in prison and a $1 million criminal fine. A federal district court judge will determine any sentence if he’s convicted, officials say.
Oak View Group said in a statement to WFAA that it “cooperated fully with the Antitrust Division’s inquiry and is pleased to have resolved this matter with no charges filed against OVG and no admission of fault or wrongdoing.”
“We support all efforts to ensure a fair and competitive environment in our industry and are committed to upholding industry-leading compliance and disclosure practices,” the statement continued. “We are proud of the partnerships we’ve built, and remain committed to continuing to offer exceptional hospitality and holistic venue management solutions and venue development expertise which deliver value to our venue partners, fellow service providers, and the communities and customers we serve.”
The University of Texas denied a request for comment.
Oak View Group was initially hired to manage Fair Park in 2019. The City of Dallas announced that it was taking over day-to-day operations at Fair Park and canceling its contract with Oak View Group back in June after months of mediation failed to make progress.
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