{"id":236367,"date":"2025-07-16T16:01:47","date_gmt":"2025-07-16T15:01:47","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=236367"},"modified":"2025-07-16T17:16:23","modified_gmt":"2025-07-16T16:16:23","slug":"nightmare-for-live-nation-questions-asked-as-doj-discovers-ticketing-kickbacks-in-ovg-boss-bid-rigging-probe","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/nightmare-for-live-nation-questions-asked-as-doj-discovers-ticketing-kickbacks-in-ovg-boss-bid-rigging-probe\/","title":{"rendered":"Nightmare for Live Nation? Questions asked as DOJ discovers ticketing ‘kickbacks’ in OVG boss bid-rigging probe"},"content":{"rendered":"

The Department of Justice’s antitrust case<\/a> against Live Nation and Ticketmaster could take a dramatic turn with the revelation of a previously undisclosed “kickback” scheme involving venue giant Oak View Group (OVG) and a major ticketing provider.<\/p>\n

The kickback arrangement has come to light as part of the DOJ’s investigation into bid-rigging allegations against OVG CEO Tim Leiweke<\/a>.<\/p>\n

The Co-Founder and now former Chief Executive Officer of venue developer Oak View Group (OVG) is being indicted by the Department of Justice<\/a> for allegedly rigging the bidding process for an arena at the University of Texas.<\/p>\n

<\/div>
<\/div>
<\/div> <\/div> <\/p>\n

In a non-prosecution agreement<\/a> with OVG dated June 5, 2025, the DOJ has detailed how OVG entered into a lucrative arrangement with a ticketing company it describes only as “Company B” \u2013 which TicketNews<\/em><\/a> and Billboard<\/em> identify as <\/a>Live Nation-owned Ticketmaster \u2013 that raises serious questions about anti-competitive practices in the live entertainment industry.<\/p>\n

OVG has had a long-standing relationship with Ticketmaster, having signed a partnership deal<\/a> in July 2021 that included ticketing services for six of OVG’s new arenas. Notably, one of those venues was Austin’s Moody Center \u2013 the same facility at the center of the DOJ’s bid-rigging allegations against Leiweke.<\/p>\n

<\/div> <\/div> <\/p>\n

According to the agreement, OVG entered into a pact with the ticketing services provider, via which the ticketing company agreed to make annual $7.5 million \u201cSponsorship Payments\u201d to OVG.<\/p>\n

These payments were “subject to adjustments based on the volume of primary, fee-bearing tickets sold” for venues managed by OVG360 in North America over a 10-year period.<\/p>\n

Additionally, the ticketing firm agreed to give OVG an upfront payment of $20 million<\/strong> in connection with the deal.<\/p>\n

The arrangement, which began in November 2022, created what\u00a0many – especially Live Nation’s rivals – may see as a conflict of interest. In return, OVG agreed, among other things, to “advocate” for Company B to “remain or become the exclusive ticketing service provider for venues that OVG360 managed”.<\/p>\n

<\/div> <\/div> \n

The critical issue identified by the DOJ is that OVG failed to disclose this financial arrangement to venue owners, despite having fiduciary duties to them.<\/p>\n

Certain venue management agreements that had first been negotiated by a predecessor to OVG provide that “[i]n operating the Facility, entering into contracts, accepting reservations for use of the Facility, and conducting financial transactions for the Facility, Manager [OVG360] acts on behalf of and as agent for Owner . . . with the fiduciary duties required by law of a party acting in such capacity.”<\/p>\n

The DOJ’s non-prosecution agreement<\/a>\u00a0with OVG notes that “as a fiduciary to the owners of certain venues it manages, OVG360 was required to disclose material information, including potential conflicts of interest”.<\/p>\n

The DOJ’s investigation found that beginning “in or about December 2022 and continuing through about January 2025, when the ticketing service contracts between certain OVG360-managed venues and their ticketing services providers expired, OVG personnel in certain instances recommended that the venue owner renew its ticketing service contract with Company B or switch from a competitor to Company B”.<\/p>\n

The non-prosecution agreement added that “when OVG advocated in this way for Company B, OVG did not disclose to the venue owners that OVG had entered into an agreement with Company B that called for OVG to receive payments in connection with ticket sales on Company B\u2019s platform and to advocate for Company B as a ticketing services provider”.<\/p>\n

\n

The kickback arrangement and the bid-rigging allegations were reportedly uncovered<\/a> during the DOJ’s 10-month review of Legends Hospitality’s acquisition of ASM Global<\/a> in 2024.<\/p>\n

According to Billboard<\/em>, correspondence between Leiweke and former Legends CEO Shervin Mirhashemi \u2014 the same email exchanges that form the basis of the criminal bid-rigging charges related to the University of Texas’ Moody Center \u2013 revealed details of the financial arrangement with the ticketing company.<\/p>\n

When Leiweke’s indictment was announced by the DOJ on July 9, it was revealed that OVG and rival Legends Hospitality had already agreed to pay $15 million and $1.5 million in penalties, respectively, as part of the June 5 non-prosecution agreement.<\/p>\n

Under the non-prosecution agreement, OVG has agreed to pay a $15 million penalty and enhance its antitrust compliance programs. The company has also committed to full cooperation with ongoing DOJ investigations, which as TicketNews<\/em> notes<\/a>, has spared it from prosecution.<\/p>\n

Last week, CNBC cited<\/a> a spokesperson for Leiweke as saying that the exec \u201chas done nothing wrong and will vigorously defend himself and his well-deserved reputation for fairness and integrity\u201d.<\/p>\n

\n

The revelations come at a crucial time for the DOJ’s ongoing antitrust case<\/a> against Live Nation and Ticketmaster, launched in May 2024.<\/p>\n

In August 2024, the attorneys general of 10 states joined the US Department of Justice (DoJ)’s lawsuit seeking to break off Live Nation from its ticketing subsidiary, Ticketmaster<\/a>. The case now involves 39 US states, plus the District of Columbia in the lawsuit.<\/p>\n

The disclosure of these arrangements could significantly bolster the DOJ’s case against Live Nation and Ticketmaster<\/a> by demonstrating how the company’s market power extends beyond direct control to include financial incentives that may compromise independent venue operators’ decision-making processes.<\/p>\n

\n

\n","protected":false},"excerpt":{"rendered":"

Arrangement has come to light as part of the DOJ’s investigation into bid-rigging allegations against OVG CEO Tim Leiweke<\/p>\n","protected":false},"author":15,"featured_media":236398,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[134417,134418,4654],"class_list":["post-236367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-live-nation-ticketmaster","tag-ovg","tag-tim-leiweke"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/236367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=236367"}],"version-history":[{"count":23,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/236367\/revisions"}],"predecessor-version":[{"id":236418,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/236367\/revisions\/236418"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/236398"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=236367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=236367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=236367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}