Moody Center Developer Indicted in Bid-Rigging Scheme

The developer and operator of the Moody Center has been indicted by a federal grand jury over allegations of bid-rigging related to the arena’s development.

Tim Leiweke, CEO of Denver-based Oak View Group, was indicted Wednesday on a federal criminal conspiracy charge related to his alleged role in rigging bids to develop, manage and operate the University of Texas basketball arena in Austin. The $375 million center opened in April 2022.

In a statement, Leiweke denied the allegations.

FROM 2021: UT’s Moody Center will be 'a world-class venue built for music,' its developers say

According to prosecutors, his Oak View Group struck a deal in 2018 with Legends Hospitality to prevent it from submitting a competing bid. In return, Oak View allegedly promised Legends subcontracts for food-and-beverage services and premium seating sales — commitments prosecutors say were never honored. The conspiracy deprived the university of a fair bidding process and impacted interstate commerce through the use of out-of-state contractors and funding.

Justice Department Antitrust Chief Gail Slater discussed the case during a call with journalists Wednesday, stating the department had reached non-prosecution agreements with both companies. As part of the agreements, Oak View Group will pay a $15 million fine while Legends Hospitality will pay $1.5 million. Legends is a New York-based joint venture involving Jerry Jones of the Dallas Cowboys.

“Under the terms of these agreements, both companies acknowledge that their respective CEOs rigged the bid on the Moody arena,” Slater said.

Leiweke, though, is charged in U.S. District Court in San Antonio with violating Section 1 of the Sherman Act. The maximum penalty for individuals includes up to 10 years in prison and a $1 million criminal fine. However, the fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims.

A spokesperson for Leiweke said he denied the allegations.

“Mr. Leiweke has done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity,” the spokesperson said. “The Antitrust Division’s allegations are wrong on the law and the facts, and the case should never have been brought.”

According to the indictment, in September 2017 Leiweke told colleagues he had learned another venue-services company was “bidding against us” for the project and wanted to “find a way to get (the competitor) some of the business” to “get them to back down.”

In February 2018, he reached an agreement under which the competitor would neither submit nor join an independent competing bid for the Moody Center project. In exchange for the agreement, Leiweke said the other company would receive subcontracts for operations at the arena.

In the three years since it opened, the Moody Center has become a marquee venue for entertainment and sports in the region. According to a 2024 Billboard ranking, the arena is the highest-grossing in the world for venues seating between 10,000 and 15,000 fans. In 2024, it grossed $126.4 million, outpacing its closest rival, Fort Worth’s Dickies Arena, by nearly $30 million.

FROM 2022: Ribbon cutting ceremony for opening of Moody Center multi-purpose arena on the UT campus

Representatives for the Moody Center declined to comment on the indictment, referring questions to Oak View Group.

The developer said it did not admit fault or wrongdoing in reaching its agreement with prosecutors.

“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,” it said in a statement. “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.”

The U.S. Department of Labor, Office of Inspector General, and the Federal Bureau of Investigation’s New York Field Office are investigating the case, while the Antitrust Division’s New York Office is prosecuting it with assistance from the U.S. Attorney’s Office for the Western District of Texas.