The chairman and CEO of the final firm in consideration to develop LSU’s new $400 million arena has been indicted by the U.S. Department of Justice, accused of a bid-rigging scheme related to the construction of the Moody Center at the University of Texas at Austin.
Tim Leiweke is alleged to have “entered into an agreement with another potential bidder for the arena to drop a competing effort in exchange for lucrative subcontracts,” according to multiple news reports Wednesday.
According to the Wall Street Journal, Justice Department officials said Wednesday that bidder was live-entertainment company Legends. The department’s antitrust division agreed to not prosecute Oak View and Legends Hospitality because they cooperated with the government’s investigation.
Oak View Group is a Denver-based developer that specializes in sports and entertainment venues. LSU Athletic Director Scott Woodward identified Oak View as the finalist to develop LSU’s arena in a speech at the Southeastern Conference’s annual spring meeting in late May.
The Wall Street Journal reports the allegations involve 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. The venue was named for Texas-focused charity the Moody Foundation, which donated $130 million to build the arena.
Leiweke is alleged to have entered into the agreement with the other potential bidder and then “reneged on that promise and did not come through with the subcontracts as he suggested.” Sources said that the DOJ’s antitrust department is also expected to announce “non-prosecution agreements” with Legends Hospitality and OVG. Legends is expected to pay a $1.5 million penalty; OVG is expected to pay a $15 million penalty.
Get more details in the Daily Report PM edition.
