Latest news with #TimothyLeiweke
The Guardian
3 days ago
- Business
- The Guardian
Sports CEO Timothy Leiweke charged in Texas arena bid-rigging scheme
A prominent sports executive has been criminally charged with organising a conspiracy to ensure his own company won the bid to build a $388m sports arena in Texas. Timothy Leiweke, the former president of the Denver Nuggets basketball team and former CEO of MLSE, which owns Toronto's major sports franchises including the Leafs and Raptors was charged on Wednesday by a federal grand jury. He resigned as chief executive of the company at the center of the case, Oak View Group (OVG), after the announcement. Spokespeople for Leiweke, 68, issued a statement maintaining he had 'done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity'. Investigators allege that Leiweke spent a period from February 2018 to at least June 2024 conspiring with a competitor's CEO to 'rig the bidding for the development, management and use' of the Moody Center, at the University of Texas at Austin. Leiweke allegedly struck a deal that the rival firm would agreed to avoid bidding on the Moody Center in exchange for OVG providing it with the project's subcontracts. OVG went on to construct the building after submitting the sole bid and the Moody Center opened in 2022. The company 'continues to receive significant revenues from the project to date', the US justice department said in a statement. Leiweke could face up to 10 years in prison and a fine of $1m or more if convicted. A statement from Abigail Slater, an assistant attorney general at the justice department's antitrust division, accused Leiweke of having 'deprived a public university and taxpayers of the benefits of competitive bidding' to boost his company's bottom line. She said federal officials would always strive 'to hold executives who cheat to avoid competition accountable'. Christopher Raia of the FBI said in a statement that 'public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field', adding: 'The FBI is determined to ensure those who disregard fair competition principles do not benefit from a rigged bidding process targeting our communities and public institutions.' Leiweke was president of the Nuggets from 1991 to 1995 before becoming CEO of the Anschutz Entertainment Group (AEG), whose holdings include the Los Angeles Kings hockey team and Los Angeles Galaxy soccer club. After leaving AEG in 2013, he was CEO and president of Canada-based MLSE, whose holdings include Toronto's major sports franchises. He co-founded OVG, based in Denver, and became its CEO in 2015. Among OVG's upcoming construction projects was a new arena at Louisiana State University (LSU). Officials at the university reportedly told The Advocate newspaper that they are reviewing how the charges against Leiweke may affect the new arena project.
Yahoo
4 days ago
- Sport
- Yahoo
Sports CEO Timothy Leiweke charged in Texas arena bid-rigging scheme
The Denver Nuggets face the Miami Heat in 2023. Timothy Leiweke is the former president of the Denver Nuggets. The Denver Nuggets face the Miami Heat in 2023. Timothy Leiweke is the former president of the Denver Nuggets. Photograph: Kyle Terada/USA Today Sports A prominent sports executive has been criminally charged with organising a conspiracy to ensure his own company won the bid to build a $388m sports arena in Texas. Timothy Leiweke, the former president of the Denver Nuggets basketball team and former CEO of MLSE, which owns Toronto's major sports franchises including the Leafs and Raptors was charged on Wednesday by a federal grand jury. He resigned as chief executive of the company at the center of the case, Oak View Group (OVG), after the announcement. Advertisement Spokespeople for Leiweke, 68, issued a statement maintaining he had 'done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity'. Investigators allege that Leiweke spent a period from February 2018 to at least June 2024 conspiring with a competitor's CEO to 'rig the bidding for the development, management and use' of the Moody Center, at the University of Texas at Austin. Leiweke allegedly struck a deal that the rival firm would agreed to avoid bidding on the Moody Center in exchange for OVG providing it with the project's subcontracts. OVG went on to construct the building after submitting the sole bid and the Moody Center opened in 2022. The company 'continues to receive significant revenues from the project to date', the US justice department said in a statement. Advertisement Leiweke could face up to 10 years in prison and a fine of $1m or more if convicted. A statement from Abigail Slater, an assistant attorney general at the justice department's antitrust division, accused Leiweke of having 'deprived a public university and taxpayers of the benefits of competitive bidding' to boost his company's bottom line. She said federal officials would always strive 'to hold executives who cheat to avoid competition accountable'. Christopher Raia of the FBI said in a statement that 'public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field', adding: 'The FBI is determined to ensure those who disregard fair competition principles do not benefit from a rigged bidding process targeting our communities and public institutions.' Leiweke was president of the Nuggets from 1991 to 1995 before becoming CEO of the Anschutz Entertainment Group (AEG), whose holdings include the Los Angeles Kings hockey team and Los Angeles Galaxy soccer club. After leaving AEG in 2013, he was CEO and president of Canada-based MLSE, whose holdings include Toronto's major sports franchises. He co-founded OVG, based in Denver, and became its CEO in 2015. Advertisement Among OVG's upcoming construction projects was a new arena at Louisiana State University (LSU). Officials at the university reportedly told The Advocate newspaper that they are reviewing how the charges against Leiweke may affect the new arena project.
The Guardian
4 days ago
- Business
- The Guardian
Sports CEO Timothy Leiweke charged in Texas arena bid-rigging scheme
A prominent sports executive has been criminally charged with organising a conspiracy to ensure his own company won the bid to build a $388m sports arena in Texas. Timothy Leiweke, the former president of the Denver Nuggets basketball team and former CEO of MLSE, which owns Toronto's major sports franchises including the Leafs and Raptors was charged on Wednesday by a federal grand jury. He resigned as chief executive of the company at the center of the case, Oak View Group (OVG), after the announcement. Spokespeople for Leiweke, 68, issued a statement maintaining he had 'done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity'. Investigators allege that Leiweke spent a period from February 2018 to at least June 2024 conspiring with a competitor's CEO to 'rig the bidding for the development, management and use' of the Moody Center, at the University of Texas at Austin. Leiweke allegedly struck a deal that the rival firm would agreed to avoid bidding on the Moody Center in exchange for OVG providing it with the project's subcontracts. OVG went on to construct the building after submitting the sole bid and the Moody Center opened in 2022. The company 'continues to receive significant revenues from the project to date', the US justice department said in a statement. Leiweke could face up to 10 years in prison and a fine of $1m or more if convicted. A statement from Abigail Slater, an assistant attorney general at the justice department's antitrust division, accused Leiweke of having 'deprived a public university and taxpayers of the benefits of competitive bidding' to boost his company's bottom line. She said federal officials would always strive 'to hold executives who cheat to avoid competition accountable'. Christopher Raia of the FBI said in a statement that 'public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field', adding: 'The FBI is determined to ensure those who disregard fair competition principles do not benefit from a rigged bidding process targeting our communities and public institutions.' Leiweke was president of the Nuggets from 1991 to 1995 before becoming CEO of the Anschutz Entertainment Group (AEG), whose holdings include the Los Angeles Kings hockey team and Los Angeles Galaxy soccer club. After leaving AEG in 2013, he was CEO and president of Canada-based MLSE, whose holdings include Toronto's major sports franchises. He co-founded OVG, based in Denver, and became its CEO in 2015. Among OVG's upcoming construction projects was a new arena at Louisiana State University (LSU). Officials at the university reportedly told The Advocate newspaper that they are reviewing how the charges against Leiweke may affect the new arena project.
Skift
5 days ago
- Business
- Skift
Oak View Group CEO Steps Down Following Federal Bid-Rigging Indictment
Criminal charges against Timothy Leiweke threaten to cast a long shadow over Oak View Group and its rapid expansion. A federal grand jury on Wednesday indicted Timothy J. Leiweke, co-founder and CEO of Oak View Group (OVG), for allegedly orchestrating a bid-rigging scheme tied to the University of Texas's Moody Center arena. The OVG Group is a U.S.-based global advisory, development, and investment company specializing in the sports and live entertainment industries. It has managed the Moody Center through its OVG360 division since it opened in 2022. The U.S. Department of Justice's (DOJ) Antitrust Division alleges that from February 2018 to at least June 2024, Leiweke conspired with the CEO of a competitor to manipulate the bidding process for the project. Prosecutors say Leiweke made an agreement with the competitor to withdraw their bid for the arena contract in exchange for subcontracts for concessions and premium seating sales. The deal made OVG the only qualified bidder for the project. The Moody Center opened in 2022 under OVG management as the home venue for University of Texas basketball and other events. Assistant Attorney General Abigail Slater said Leiweke "rigged a bidding process to benefit his own company and deprived a public university and taxpayers of the benefits of competitive bidding." She added that the DOJ would "hold executives who cheat to avoid competition accountable." OVG and Legends Hospitality have effectively controlled the convention center and sporting arena management market since Legends acquired ASM Global in August. Leiweke is charged with violating Section 1 of the Sherman Antitrust Act, which carries a maximum penalty of 10 years in prison and a $1 million fine if convicted. OVG agreed to pay $15 million in penalties and Legends $1.5 million, though neither company admitted wrongdoing. No charges were filed against OVG. In response to the indictment, OVG released the following statement: '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. 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.' Legends did not immediately respond to a request for comment. Leiweke stepped down as CEO, and Chris Granger, president of OVG360, will serve as interim CEO overseeing the company's 400-venue portfolio. Granger joined in 2021 after leadership roles with the NBA and various sports teams. In February, OVG lost the management of Chicago's McCormick Place, the largest convention center in North America. OVG continues to manage the facility's food and beverage. The charges come amid OVG's efforts to reshape its image. The company recently changed its mission statement from "We are DISRUPTORS..." to "We're in the business of making Big things happen," according to archived versions of its website.
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
Stadium Developer CEO Charged with Bid-Rigging Over New Texas Arena
The chief executive officer of stadium developer Oak View Group was charged with conspiring with a rival to rig the process for constructing a new arena in Texas, authorities said Wednesday. Timothy Leiweke told a rival that it would receive contracts to operate concessions and sell premium seats if it didn't compete against his company to build the new venue, according to the indictment. He was charged with conspiracy to eliminate competition by rigging the bid to build the Moody Center in Austin, a 15,000-seat venue on the University of Texas campus that opened in 2022 and hosts the Longhorns' men's and women's basketball teams.
