The individual proposing to construct an NBA arena in Las Vegas has been charged by the US Department of Justice. Tim Lieweke, CEO of the Oak View Group (OVG) in Denver, faces allegations of manipulating the bidding process for a public arena contract at the Moody Center, University of Texas at Austin.
As per the Justice Department’s Antitrust Division, Leiweke colluded to reduce competition by persuading a competing firm, Legends Hospitality, to retract its offer in return for subcontracts. OVG won the contract as the exclusive bidder for the arena, which launched in April 2022 and still produces income for the company.
Leiweke could receive a maximum of 10 years in prison and a $1 million fine for breaching the Sherman Antitrust Act, according to the DOJ, while OVG and Legends have consented to pay $15 million and $1.5 million in penalties, respectively.
“As outlined in the indictment, the Defendant rigged a bidding process to benefit his own company and deprived a public university and taxpayers of the benefits of competitive bidding,” Abigail Slater, chief of the DOJ’s Antitrust Division, said in a statement. “The Antitrust Division and its law enforcement partners will continue to hold executives who cheat to avoid competition accountable.”
Leiweke’s representative refutes the claims, maintaining his innocence in a statement and condemning the DOJ’s case as inconsistent with legal standards and industry norms that promote competition.
“Mr. Leiweke has done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity,” the statement read.
OVG is the private equity firm located in Denver that intends to construct a $10 billion NBA arena in Las Vegas.
“This unprecedented project is an industry game-changer, and we will usher in the evolution of Las Vegas as the new entertainment AND sports capital of the world,” Leiweke said when the project was first announced in 2023.
Initially, OVG intended to construct it on 25 acres close to the M Resort, located five miles south of the Strip. However, a financial dispute with the landowner, Florida-based Blue Diamond Acquisition, led OVG last year to focus its efforts on the Rio instead.
Two weeks prior, Casino.org reported that Resorts World was considering selling 42 of its unbuilt Strip acres for a basketball venue, although OVG was not specifically identified.
This week, the NBA's board of governors has gathered in Vegas for its yearly summer meetings, where league expansion will be a crucial discussion point.
BetOnline.ag indicates that Las Vegas and Seattle have become obvious frontrunners to be the next cities to enter the league. Seattle, having lost its SuperSonics to Oklahoma City in 2008, leads the ranking at 1:1, with Las Vegas next at 2:1.
