CEO of Snapdragon Stadium's Management Company Indicted in Bid-Rigging Allegation

Legal Challenges and Controversies Surrounding a Major Sports Venue Company

The recent legal troubles of a prominent figure in the sports venue industry have sparked significant attention, particularly concerning allegations of antitrust violations. Tim Leiweke, the CEO of the company that manages Snapdragon Stadium and proposed building an adjacent arena on the Mission Valley property, has been indicted by a federal grand jury for allegedly rigging the bid process for a similar project at the University of Texas.

Leiweke, who co-founded the Oak View Group (OVG) in 2015, stepped down as CEO after the Department of Justice announced the indictment. However, he will continue to serve as a vice chairman of the board and remain a shareholder. If convicted, he could face up to 10 years in prison, along with substantial fines that may reach into the seven figures.

A Significant Financial Settlement

In response to the allegations, the Oak View Group agreed to pay a $15 million fine, stating that it "cooperated fully" with the government’s investigation and "resolved this matter with no charges filed against OVG and no admission of fault or wrongdoing." Despite the legal challenges, San Diego State University issued a brief statement indicating it will continue its partnership with Oak View Group. The university emphasized its positive working relationship with OVG and their current management of Snapdragon Stadium, noting that they do not anticipate any changes based on recent leadership shifts.

The Moody Center Case

The indictment centers around the Moody Center, a 16,223-capacity venue that opened in 2022 on the University of Texas campus in Austin. It alleges that in 2017, Leiweke learned another venue-services company was bidding against OVG for the project and schemed to deter the bid in exchange for lucrative subcontracts at the Moody Center.

An email allegedly sent by Leiweke to an investor stated: “We were very clever at putting together a partnership that scared everyone else away. … This allows us to dictate terms to (the university).” OVG was the only bidder, and the project broke ground in December 2019.

Assistant Attorney General Abigail Slater of the DOJ’s Antitrust Division stated, “(Leiweke) rigged a bidding process to benefit his own company and deprived a public university and taxpayers of the benefits of competitive bidding.”

Denial of Allegations

A spokesperson for Leiweke denied the charges, arguing that the Antitrust Division’s allegations are wrong on the law and the facts. They claimed that vertical, complementary business partnerships, like the one contemplated between OVG and Legends, are legal and that these allegations ignore established legal precedent.

The company that allegedly agreed not to submit a bid, Legends Hospitality, agreed to a $1.5 million fine. Legends has worked with SDSU as well, partnering with JMI Sports to help oversee design construction, naming rights, premium seating, and founding partners at Snapdragon Stadium. Legends is also a general partner on the Midway Rising project proposed for the city’s Midway District that includes a new arena.

Previous Legal Issues

Legends faced previous legal issues when the Department of Justice sued them for violating federal waiting period requirements related to its acquisition of ASM Global, which was the former operator of Pechanga Arena San Diego. Legends did not admit to wrongdoing but agreed to pay $3.5 million as a civil penalty.

While the Moody Center was being built, OVG approached SDSU about a similar project on the Mission Valley property as a concert venue and future home for its popular men’s basketball team. OVG was initially part of a bid for the Midway District project, then withdrew from that and approached SDSU in December 2021 about building a $425 million, 16,000-seat arena next to Snapdragon Stadium.

Success of the Moody Center

In 2024, Billboard ranked the Moody Center as the world’s highest-grossing venue of its size at $126.4 million after booking 107 events that drew just under 1 million spectators. Leiweke praised the Moody Center's success, stating, “I would love to do 10 of these because they’re that successful with that good of vision.”

Despite the success of the Moody Center, SDSU ultimately passed on the proposal for a similar project on the Mission Valley property, citing the need for a public bidding process and considering renovations to their existing arena. Gina Jacobs, who oversees the development of the Mission Valley property for SDSU, noted that the proposal was inconsistent with their vision for the site and that they do not need a new arena.