Oak View Group executive charged with rigging bids for Texas arena

By Jody Godoy

July 9 (Reuters) - The U.S. Justice Department announced bid-rigging charges against the CEO of stadium developer Oak View Group on Wednesday, accusing him of colluding with a competitor on bids for an arena at the University of Texas in Austin in 2018.

Tim Leiweke is accused of securing an illegal agreement with competitor Legends in which Legends would not bid on the Moody Center arena in exchange for subcontracting work, according to an indictment unsealed in federal court in Austin. He later reneged on the deal, prosecutors said. Leiweke, former CEO of live events company AEG, co-founded Oak View in 2015.

Oak View will pay a $15 million fine, and Legends will pay a $1.5 million fine under settlements with the Justice Department that let the companies avoid being charged.

Leiweke denied any wrongdoing, and intends to fight the charges, a spokesperson said.

"The law is clear: vertical, complementary business partnerships, like the one contemplated between OVG and Legends, are legal. These allegations blatantly ignore established legal precedent and seek to criminalize common teaming efforts that are proven to enhance competition and benefit the public," the spokesperson added.

Representatives for Legends and Oak View did not immediately respond to requests for comment on Wednesday.

U.S. Assistant Attorney General Gail Slater, who leads the Justice Department's antitrust division, said the charges are part of President Donald Trump's crackdown on unfair practices in the live entertainment industry.

"In his recent executive order, the president calls on his administration to ensure that the live entertainment industry Americans know and love can be made accessible to all Americans in a free and fair market. Today's indictment is an important step in realizing this goal," Slater said.