Legends Hospitality, the sports and entertainment company co-founded by Dallas Cowboys owner Jerry Jones and the New York Yankees, has agreed to pay a $1.5 million penalty as part of a federal antitrust investigation into alleged bid-rigging involving a major arena project, NBC Sports reports.
The U.S. Department of Justice revealed this week that the penalty stems from Legends’ role in a scheme tied to the construction of the Moody Center at the University of Texas. The case centers around Tim Leiweke, a prominent figure in the sports and live events industry and, until this week, CEO of Oak View Group (OVG).
According to federal prosecutors, Leiweke reached an illegal agreement with Legends during the arena’s development process. OVG, which led the financing and oversaw construction of the venue, allegedly made a deal with Legends to withdraw its bid to manage the project. In return, Legends was promised favorable subcontracts — promises that were reportedly not fulfilled.
OVG will pay a $15 million penalty, while Leiweke faces a federal indictment for bid-rigging. He resigned from OVG on Wednesday following the charges but maintains his innocence. In a statement to Sports Business Journal, Leiweke described the deal with Legends as a “vertical, complementary business partnership” that he believes complied with legal standards.
The case has drawn attention not only for its impact on the sports and entertainment development world but also for its broader implications. Jerry Jones, while no longer the majority stakeholder in Legends following a sale to Sixth Street Partners in 2020, retains an ownership stake. The involvement of high-profile figures in sports ownership, along with the magnitude of the penalties, has raised the stakes.
The investigation into Legends and OVG comes at a time of heightened scrutiny on antitrust behavior in professional sports. The NFL Players Association (NFLPA) recently won an arbitration ruling finding that NFL teams had colluded on guaranteed player contracts — a separate issue, but one that has renewed interest in potential violations by team owners and league executives.
The union has faced criticism for not immediately referring the matter to the Department of Justice. Some observers have suggested that ongoing revelations of anti-competitive practices in different areas of professional sports — including this case involving Legends — could prompt broader DOJ interest in league conduct.
With the DOJ’s antitrust division already active in the sports and entertainment sectors, the developments involving Legends Hospitality could be part of a larger narrative about competition and transparency in high-stakes industries.
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