AUSTIN, Texas – Timothy J. Leiweke, CEO of Oak View Group (OVG) – which recently partnered with the City of Saskatoon – has been indicted by a federal grand jury for allegedly cheating in a bidding process to secure a contract for a public university arena in Austin, Texas.
The indictment, filed in the U.S. District Court for the Western District of Texas, accuses Leiweke of conspiring with a competitor to rig the bidding for the development, management, and operation of a multi-purpose arena on the Texas university’s campus. The alleged scheme, which ran from February 2018 to at least June 2024, deprived the university and taxpayers of a fair and competitive process.
“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 in a statement on July 9. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”
Authorities say Leiweke struck a deal with a rival CEO, ensuring the competitor wouldn’t submit a bid. In exchange, the competitor would get smaller subcontracts instead of fairly competing.
According to the indictment, in 2017 Leiweke told colleagues he had learned a competitor 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.”
By February 2018, Leiweke allegedly reached an agreement with the competitor’s CEO, ensuring they would not submit a bid in exchange for subcontracts. As a result, OVG became the only qualified bidder and won the contract. The arena opened in April 2022, and OVG continues to profit from the project.
“Public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field,” said Assistant Director Christopher G. Raia of the FBI New York Field Office.
Bid-rigging can lead to inflated costs and inferior services, ultimately harming taxpayers, said U.S. Attorney Justin R. Simmons for the Western District of Texas.
“Unfair business practices, like those employed here, make it very difficult for the American people to pursue prosperity like our founders intended,” said Simmon.
OVG’s other public-private ventures include a recent deal in Saskatoon. In August 2024, the city approved a funding strategy for its Downtown Event and Entertainment district, partnering with OVG360, a subsidiary of OVG, for a $20 million upfront payment and $150 million in revenue-sharing over 25 years.
The project relies on accommodations and amusement taxes, parkade revenues, and other public funding sources. There is no indication of wrongdoing in Saskatoon’s agreement.
Leiweke could face up to 10 years in prison and a large fine. His company (OVG) and another involved company (Legends) have already agreed to pay $15 million and $1.5 million in penalties.
In an email statement to SaskToday on Friday, an OVG spokesperson said Oak View Group 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,” said OVG. “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.”
-With files by Jon Perez
