Tim Leiweke, the former CEO of Maple Leaf Sports & Entertainment, has been indicted by a U.S. grand jury for allegedly conspiring to rig the bidding process for the Moody Center arena at the University of Texas at Austin.

According to the U.S. Department of Justice, from 2018 to 2024, Leiweke led a scheme to steer the entertainment contracts for the 15,000-seat arena to Oak View Group, the company he founded after departing MLSE in 2015.

Leiweke has been charged with violating the Sherman Antitrust Act, which carries a maximum penalty of 10 years in prison and a US$1-million fine.

“Mr. Leiweke has done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity,” a spokesperson for Leiweke said in a statement, according to The Hollywood Reporter. “The antitrust division’s allegations are wrong on the law and the facts, and the case should never have been brought. 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 Moody Center is a perfect example, as it has resulted in substantial and sustained benefits to the University of Texas and the City of Austin.”

As the case unfolds, Leiweke will step down as CEO of Oak View Group and transition to vice-chairman of the company’s board — part of a succession plan already underway, according to The Toronto Star.

“The last thing I want to do is distract from the accomplishments of the team or draw focus away from executing for our partners,” Leiweke said in a press release cited by multiple media outlets.

The U.S. indictment alleges Leiweke made a deal with the CEO of rival bidder Legends Hospitality, in which Legends would drop out of the competition in exchange for subcontracting work. The DOJ says Legends did not submit a competing bid, leaving Oak View as the sole qualified contender.

“The defendant rigged a bidding process to benefit his own company and deprived a public university and taxpayers of the benefits of competitive bidding,” said Assistant Attorney General Abigail Slater. “The antitrust division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”

Oak View said it “co-operated 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.” The company agreed to pay US$15 million in penalties, while Legends will pay US$1.5 million.

Oak View manages and operates numerous sports and entertainment centres, including such Canadian venues as Canada Life Place in London, Ont., and First Ontario Concert Hall in Toronto, according to the Star.

Pictured: Canada Life Place in London, Ont., an arena managed and operated by Oak View.

Photo: Canada Life