Former Maple Leafs Executive Caught in Arena Bid-Rigging Scandal
Photo credit: The Globe and Mail
According to an FBI report, former MLSE executive Tim Leiweke has been charged in a scheme that saw him try to rig things in his favor for a new arena in Texas.
While he doesn't have his hands all over the Maple Leafs, former executive Tim Leiweke has been busy with his Oak View Group, trying to bid for new arena contracts that will see sporting events, concerts and the like be held through Leiweke's group.
But in that bidding comes a lot of legal red tape, and for Leiweke, he violated the law.
Tim Leiweke indicted for bid-rigging scheme
According to an FBI report released on Wednesday, the Federal Bureau of Investigation revealed that have indicted Leiweke for trying to hatch a plan to have his Oak View Group come out on top for the rights to build an arena in Texas.
The issue is, the contract is an open and public one, meaning other groups and companies need to have a fair and equal chance to bid as well; and per FBI Assistant Director Christopher Raia; that's a no-go:
Timothy Leiweke allegedly led a scheme designed to steer the contract for entertainment services ar a public university's arena to his company.
Public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field. The FBI is determined to ensure that those who disregard fair principles do not benefit from a rigged bidding process targeting our communities and public institutions.
Public contracts are subject to laws requiring an open and competitive bid process to ensure a level playing field. The FBI is determined to ensure that those who disregard fair principles do not benefit from a rigged bidding process targeting our communities and public institutions.
Tim's in trouble: Why Leiweke is being indicted
While Leiweke hasn't been sentenced to anything yet, there is further investigation to be done, and per a Reuters report, the Oak View Group will pay a fine of $15-million, meanwhile competitor Legend will pay a $1.5-million fine.
The two were accused of colluding together; Oak View would win the bidding war while they would allow Legends to do subcontracting work.
The indictment comes off the heels of U.S. President Donald Trump trying to crack down on these types of incidents, with U.S. Assistant Attorney General Gail Slater explaining the reason for going after Leiweke:
In his recent executive order, the president calls on his administration to ensure that the live entertainment industry Americans know and love can be made accessible to all Americans in a free and fair market. Today's indictment is an important step in realizing this goal.
Leiweke was President of Maple Leafs Sports and Entertainment from 2013 to 2015 and was responsible for bringing in Brendan Shanahan to the Leafs, Masai Ujiri to the Raptors, and was a big supporter of Toronto FC.
We will continue to follow this story as the situation develops, check back at a later for an update.
| POLL | ||
JUILLET 9 | 2790 ANSWERS Former Maple Leafs Executive Caught in Arena Bid-Rigging Scandal Will Tim Leiweke face a prison sentence? | ||
| Yes | 1542 | 55.3 % |
| No | 1248 | 44.7 % |
| List of polls | ||
TRENDING NOW
