FILE – Tim Leiweke, head of Maple Leaf Sports and Entertainment, gets ready for a TV interview after a press event in Toronto. (Photo: Chris Young / The Canadian Press)
Tim Leiweke, the former head of Maple Leaf Sports and Entertainment (MLSE), has been formally charged by a U.S. federal grand jury. Authorities allege he rigged the bidding process for building and managing a multi-use arena at a public university in Austin, Texas.
The charges were announced Wednesday by the U.S. Department of Justice’s Antitrust Division. Leiweke, who now leads Oak View Group (OVG), is accused of secretly working with the CEO of a competing firm between February 2018 and June 2024 to influence the arena project’s bidding outcome.
According to court documents, Leiweke first learned in September 2017 that another company planned to compete for the Texas arena contract. Internal messages suggest he discussed how to convince the rival to “back down” and proposed offering them parts of the project in return for stepping away.
By February 2018, prosecutors allege, Leiweke had struck a deal with the competitor: they would not bid for the project, and in exchange, OVG would give them certain subcontracts. This move allowed OVG to submit the only bid for the project, effectively locking in the deal. The venue, known as the Moody Center, opened in April 2022 and has since generated large profits for OVG.
The Department of Justice claims this backdoor arrangement cost the university and taxpayers the advantages of an open and competitive bidding process. If convicted under the Sherman Act, Leiweke could face up to 10 years in prison and a fine of $1 million.
Assistant Attorney General Abigail Slater criticized the alleged manipulation, saying it undermined fairness and harmed public interest. “The defendant rigged the bidding to benefit his own company,” she said.
FBI officials echoed the concern, with Christopher G. Raia of the FBI’s New York office emphasizing that public projects must follow fair competition laws. “We won’t let anyone benefit from manipulating contracts meant for the public good,” he stated.
In response to the investigation, OVG and Legends Hospitality — a company involved in the agreement — agreed to pay $15 million and $1.5 million in penalties, respectively. However, no charges have been laid against OVG itself.
Leiweke has denied all allegations. His spokesperson, Amelia Fogg, defended his actions, saying the partnership between OVG and Legends was legal and beneficial. “The law allows for vertical partnerships that enhance competition,” she said, adding that the charges ignore legal precedent.
OVG released a separate statement confirming their cooperation with investigators and stressing their commitment to ethical business practices. “We’re proud of the Moody Center project and our continued efforts to serve communities, partners, and clients with integrity,” the company said.
As the case moves forward, Leiweke maintains his innocence and plans to contest the charges in court.
