The individual advocating for the prominent plan to construct an NBA arena in Las Vegas has been charged by the US Department of Justice. Tim Lieweke, the CEO of the Denver-based Oak View Group (OVG), faces allegations of manipulating the bidding process for a public arena contract at the Moody Center, University of Texas at Austin. 

The Justice Department’s Antitrust Division stated that Leiweke colluded to stifle competition by persuading a competitor, Legends Hospitality, to retract its proposal in return for subcontracts. OVG obtained the contract as the exclusive bidder for the arena, which launched in April 2022 and remains a revenue source for the company. 

According to the DOJ, Leiweke could receive a prison sentence of up to 10 years and a fine of $1 million for breaching the Sherman Antitrust Act, while OVG and Legends have consented to pay penalties of $15 million and $1.5 million, 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 accusations, 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.

We support OVG

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 conflict with the owner of that property, Blue Diamond Acquisition based in Florida, prompted OVG last year to focus its efforts on the Rio instead. 

Casino.org reported two weeks ago that Resorts World was considering selling 42 of its undeveloped acres on the Strip for a basketball facility, although OVG was not specifically named. 

This week, the NBA's board of governors has gathered in Vegas for its yearly summer meetings, where league expansion will be a main agenda item. 

BetOnline.ag indicates that Las Vegas and Seattle have become prominent frontrunners as the upcoming cities likely to enter the league. Seattle, having lost its SuperSonics to Oklahoma City in 2008, leads the list at 1:1, with Las Vegas coming in next at 2:1.