LSU officials are concerned about the impact of the indictment of Oak View Group’s CEO on their planned sports and entertainment arena in Baton Rouge.
Recent Developments
A day after federal prosecutors in Texas charged Timothy J. Leiweke with rigging bids for a similar project at the University of Texas at Austin, university leaders announced they are reviewing the implications for LSU’s proposal.
On Wednesday, the U.S. Department of Justice unsealed an indictment against Leiweke. He is accused of conspiring to eliminate competition in the Moody Center project, a 15,000-seat facility that opened in 2022 at UT Austin. Federal authorities allege that Leiweke persuaded rival bidders, including Legends, to withdraw their offers by promising them:
- Lucrative concessions
- Premium-seat contracts
LSU’s Response
In an emailed statement Thursday, Zach Greenwell, LSU Athletics’ chief communications officer, said:
“All involved parties are evaluating the implications on the potential arena project in Baton Rouge considering this week’s news regarding Oak View Group. There is not a finalized agreement in place with Oak View Group, nor has a potential agreement gone before any governing bodies for approval, including the LSU Board of Supervisors.”
Greenwell added that the future status of the project will be informed by a due diligence review.
Decision Time for LSU
LSU Athletic Director Scott Woodward named Oak View Group the sole finalist for the Baton Rouge arena in May. He noted that ASM Global was no longer under consideration. However, no contract has been signed yet.
Now, university officials must decide whether to proceed with a firm whose CEO has agreed to pay $15 million in penalties to resolve the DOJ’s investigation. Meanwhile, Legends faces a $1.5 million fine.
Oak View Group’s Position
Oak View Group denies any wrongdoing. Leiweke reportedly told employees he would step down as CEO and become vice chairman of the board. A spokesperson for Leiweke stated that:
“These allegations blatantly ignore established legal precedent and seek to criminalize common teaming efforts that are proven to enhance competition and benefit the public.”
Legal Background
This case represents a rare criminal bid-rigging prosecution in the live-entertainment sector. Most antitrust actions are civil, but federal law classifies conspiracies to fix prices or rig bids as criminal offenses. Oak View Group and Legends cooperated fully, which helped them avoid more severe charges.
Leiweke’s Background
Leiweke co-founded Oak View Group after working in the NBA and NHL. He also served as CEO of Maple Leaf Sports & Entertainment. Under his leadership, Oak View launched a plan in 2019 to develop eight new arenas, believing in the concert business’s long-term strength. The firm was the only bidder for the Moody Center and Leiweke reportedly bragged about how he was “very clever at putting together a partnership that scared everyone else away” from the project. Oak View awarded no contracts to Legends.
Investors Involved
Investors in the companies involved in the case include:
- Sixth Street (the majority backer of Legends)
- YGE Holdings (linked to the New York Yankees)
- Jones Concessions (owned by Jerry Jones of the Dallas Cowboys)
- Silver Lake (heavily invested in Oak View in 2018)
The Future of LSU’s Arena Project
As LSU considers its next steps, the arena project remains uncertain. Officials will complete their due diligence before deciding whether to move forward with Oak View Group or reopen the search. This decision could reshape Baton Rouge’s sports and entertainment landscape for years to come.
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