CEO of company connected to Saskatoon downtown arena indicted in U.S. arena bid-rigging scheme

The CEO of the company that won a contract to run Saskatoon's proposed downtown arena and entertainment district has been indicted in the U.S. for allegedly orchestrating a conspiracy to rig the bidding process for an arena in Austin, Texas.

The U.S. Department of Justice announced the indictment against Oak View Group (OVG) CEO and co-founder Tim Leiweke on July 9. He is charged with a violation of Section 1 of the Sherman Act, facing a maximum penalty of 10 years in prison and a $1-million US fine.

According to the justice department, Leiweke told colleagues a rival company was "bidding against us" and expressed a desire to "get them to back down" — a goal he later achieved through a 2018 agreement under which the competitor didn't submit a bid and instead received subcontracts, leaving OVG as the lone qualified bidder.

None of the allegations have been proven in court.

In 2024, OVG successfully bid for the contract to manage Saskatoon's proposed downtown arena and convention centre. The company, through its division OVG360, agreed to pay the city $170 million over the 25-year agreement in exchange for a percentage of profits at the facilities.

City council has not approved the deal. Earlier this year, councillors agreed to delay approval while city staff evaluated how U.S. tariffs and a federal election could affect the $1.2-billion project.

Leiweke's indictment doesn't affect the city's dealings with the company, Saskatoon city solicitor Cindy Yelland said in a statement e-mailed to CBC News.

"What is known publicly is the allegations implicate that individual alone and not OVG," Yelland said in the statement, adding that nothing has changed since city council decided to hold off signing the agreement.

"The report to City Council on the private partner Agreement Framework is currently paused due to the uncertainty of the trade environment with the U.S."

The downtown district plan includes a 15,900-seat arena to replace SaskTel Centre, and renovation and expansion of TCU Place.

OVG also runs the Moose Jaw Events Centre, along with dozens of other venues across North America, including Seattle's Climate Pledge Arena, Canada Life Place in London, Ont., and Hamilton's recently renovated TD Coliseum.

Leiweke announced he is stepping down as CEO, but will transition to vice-chairman of OVG's board of directors and remain a shareholder of the company. He previously worked as CEO and president of Maple Leaf Sports & Entertainment from 2013 to 2015.

Leiweke said he was pleased that OVG resolved its DOJ inquiry without any charges filed or admission of wrongdoing by the company.

"The last thing I want to do is distract from the accomplishments of the team or draw focus away from executing for our partners, so the board and I decided that now is the right time to implement the succession plan that was already underway and transition out of the CEO role," he said in his written statement.

In a statement that did not mention Leiweke, OVG said it "co-operated fully with the Antitrust Division's inquiry" and was "pleased to have resolved this matter with no charges filed against OVG and no admission of fault or wrongdoing."

The board has appointed Chris Granger, president of OVG360, to serve as interim CEO.

The project in Austin became the Moody Center, home to University of Texas basketball, and opened to the public in April 2022. OVG continues to receive significant revenues from the venue.

OVG and Legends Hospitality have agreed to pay $15 million and $1.5 million in penalties, respectively, related to the conduct outlined in the indictment.