{"id":6862,"date":"2025-07-12T00:00:25","date_gmt":"2025-07-12T00:00:25","guid":{"rendered":"https:\/\/usatrustedlawyers.com\/blog\/ovg-ceo-charges-grew-out-of-asm-legends-merger\/"},"modified":"2025-07-12T00:00:25","modified_gmt":"2025-07-12T00:00:25","slug":"ovg-ceo-charges-grew-out-of-asm-legends-merger","status":"publish","type":"post","link":"https:\/\/usatrustedlawyers.com\/blog\/ovg-ceo-charges-grew-out-of-asm-legends-merger\/","title":{"rendered":"OVG CEO Charges Grew Out of ASM\/Legends Merger"},"content":{"rendered":"\n
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\n\tT<\/span>he bid-rigging charges brought against Oak View Group (OVG) CEO Tim Leiweke<\/strong> earlier this week grew out of the federal government\u2019s 10-month regulatory review of the merger between Legends Hospitality and ASM Global last year, multiple sources have confirmed to Billboard<\/em>.<\/p>\n

\n\tDuring that review, emails surfaced between Leiweke and former Legends CEO Shervin Mirhashemi<\/strong> that government officials allege show Leiweke conspiring to \u201crig the bidding to develop, manage, and operate an arena\u201d at the University of Texas in Austin. Leiweke has denied any wrongdoing in the case and vowed to fight the charges.<\/p>\n

\n\tThe government also uncovered evidence during the review that OVG\u2019s venue management division encouraged its clients to sign ticketing agreements with Ticketmaster while failing to disclose that OVG was paid an upfront payment of $20 million in November 2022, along with $7 million in annual payments, to steer clients to the ticketing giant, according to documents attached to OVG\u2019s non-prosecution agreement with the government over the big-rigging charges.<\/p>\n

\n\tOVG executives allegedly lobbied the company\u2019s venue clients on behalf of Ticketmaster \u201cto remain or become the exclusive ticketing service provider for venues that OVG360 managed,\u201d documents attached to the non-prosecution agreement read. \u201cWhen OVG advocated in this way for [Ticketmaster], OVG did not disclose to the venue owners that OVG had entered into an agreement with [Ticketmaster] that called for OVG to receive payments in connection with ticket sales,\u201d it adds.<\/p>\n

\n\tIt\u2019s unclear how the government plans to use the information it uncovered about Ticketmaster, as the criminal indictment against Leiweke makes no mention of the ticketing company. However, in federal court filings in the 2024 civil antitrust lawsuit the Department of Justice brought against Ticketmaster parent company Live Nation, Leiweke was described as a \u201cpimp,\u201d \u201chammer\u201d and \u201cprotector\u201d for Ticketmaster, though neither OVG nor Leiweke are defendants in that case.<\/p>\n

\n\tLegal experts tell Billboard <\/em>that the criminal case against Leiweke is not particularly strong and predicated on a series of business maneuvers that seem relatively mundane in the cutthroat live entertainment business. The charges were, however, serious enough that the board of directors for both OVG and Legends signed non-prosecution agreements with the Department of Justice. As part of its agreement, OVG also agreed to pay $15 million in penalties, while Legends agreed to pay $1.5 million.<\/p>\n

\n\tOVG was not being prosecuted, writes Omeed A. Assefi<\/strong>, deputy assistant attorney general, because the company \u201ccooperated and has agreed to continue to cooperate with the Antitrust Division in any ongoing criminal investigation of the conduct of the Company and its business partners.\u201d<\/p>\n

\n\tAs part of its non-prosecution agreement, OVG agreed to \u201cuse its best efforts to make available for interviews or testimony any current or former owners, officers, directors, employees, agents, and consultants of OVG,\u201d the document reads. This obligation includes \u201csworn testimony before a federal grand jury or in federal criminal trials,\u201d with one exception \u2014 Leiweke\u2019s daughter Francesca Bodie<\/strong>, the company\u2019s COO.<\/p>\n

\n\t\u201cOVG shall not be required to make individuals available to provide interviews, testimony, or other cooperation against immediate family members,\u201d the agreement reads.<\/p>\n

\n\tLegends has paid $5 million total as a result of multiple federal probes into the company. Last year, the company agreed to pay $3.5 million in fines after government attorneys uncovered evidence that Mirhashemi violated mandatory waiting period laws \u2014 known as \u201cgun-jumping\u201d charges \u2014 as part of its $2.3 billion acquisition of ASM Global.<\/p>\n

\n\tOn November 3, 2023, Legends agreed to purchase ASM from owners AEG and Onex and submitted a notification to the Justice Department as part of the Hart-Scott-Rodino (HSR) Antitrust Act, which requires advanced notification of corporate mergers. According to the HSR Act, merging companies must adhere to a 30-day waiting period prior to closing the transaction while the government decides whether or not to open a second, more in-depth investigation and study the deal\u2019s potential impact on competitiveness.<\/p>\n

\n\tDuring the secondary review, which began on Jan. 8, 2024, Legends was barred from operating ASM Global or sharing sensitive information with ASM executives, but Legends officials reportedly broke the rules three times, including by changing an ASM bid for a building contract to include Legends.<\/p>\n

\n\tThe gun-jumping charges led to a wider review of Legend\u2019s contracts, including its involvement in OVG\u2019s bid to build the Moody Center Arena in Austin, Texas, sources tell Billboard<\/em> \u2014 ultimately leading the DOJ to review the emails between Leiweke and Mirhashemi.<\/p>\n

\n\tLeiweke previously served as the CEO of former ASM Global owner AEG and was one of the co-founders of the company, previously known as AEG Facilities, which he left in 2013 after a fallout with AEG owner Phil Anschutz<\/strong>. Working with partner Irving Azoff <\/strong>and with financial backing from investment firm Silver Lake, Leiweke would begin building OVG, first by acquiring media companies like Pollstar and Venues Today and eventually by leading an acquisition of venue management firm Spectra. OVG would go on to build and operate a number of top-tier arenas, including Climate Pledge Arena in Seattle, UBS Arena in New York, Acrisure Arena in Palm Springs, Calif., Co-Op Live in Manchester, U.K., and dozens of other clients through its management companies and groups like the Arena Alliance.<\/p>\n

\n\tOn Wednesday, Leiweke announced that he was stepping down as OVG\u2019s CEO but would continue on with the company as vice chair of its board of directors.<\/p>\n

\n\tLive Nation declined to comment for this story. Representatives for OVG, Legends and the DOJ did not respond to requests for comment.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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