OVG Vienna project run into rough weather

Article posted by Coliseum, November 3^rd, 2023

Image: Kronaus Mitterer Architekten

The entertainment company Oak View Group (OVG) has expressed its disappointment after an Austrian court revoked the decision to award it the contract to build and run a new “world-class” arena in Vienna (Austria).

‘IQ’ stated that the OVG was identified as the ‘best bidder’ in July this year, with construction on the 20,000-cap venue scheduled to begin in 2025, aiming for completion in late 2029.

The OVG Oak View Group, LLC is an American Global Advisory, Development and Investment Company for Sports and Live Entertainment industries. Based in Los Angeles, it was formed on November 16^th, 2015 by Tim Leiweke and his business partner, Irving Azoff. Leiweke is the company’s Chief Executive Officer (CEO).

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‘IQ’ further stated that the €384 million arena was to be largely financed by OVG, with the City of Vienna contributing an amount in the “double-digit million range”, according to the final offer.

However, reports stated that the tender process is now back to square one after the award was “declared void for formal reasons” by the Vienna Regional Court, following an objection by the rival bidder CTS Eventim.

The Vienna Regional Court is a court in Austria that has exclusive jurisdiction over civil matters. The court also has a regional court for criminal matters.

The CTS Eventim is a German company in the leisure-events market, with ticketing and live entertainment, headquartered in Bremen. It is one of the 50 companies comprising the MDAX index and one of the 40th to 90th largest companies in Germany by market capitalization.

Shared OVG CEO Tim Leiweke, “Of course, we are very disappointed with the result. This beautiful City has always been the jewel in Europe’s cultural landscape, but it had no arena to match it. We are pleased that the court assessed our offer in such a way that we meet all the tender requirements and also require the least amount of effort for taxpayers. Should we decide to go ahead and continue the procedure, we remain confident that we will be able to overcome the court’s objections.”

Jessica Koravos, President of OVG International, added that the company is now considering its options, “Together with our partners in Vienna, the Oak View Group will now analyze the procedure and decide on the next steps. Should we decide to go ahead and continue the procedure, we remain confident that we will be able to overcome the court’s objections and our project of a bespoke, contemporary venue with the latest technology will ultimately prevail.”

The opening of the arena was originally planned for 2024, but the City of Vienna began looking for a partner due to the expected high costs.

The Vienna arena was to have marked OVG’s ninth arena project in the last two years. The developer oversees the operations of the 18,300-capacity Climate Pledge Arena at Seattle Center, the 17,255-capacity UBS Arena in Belmont Park, New York, and the 15,000+ Moody Center in Austin, Texas, as well as arena development projects for the 10,000-capacity Acrisure Arena in Palm Springs, California, and the 23,500-capacity Co-op Live in Manchester, UK.

Recently, it was announced that the Climate Pledge Arena had become the first arena in the world to achieve International Living Future Institute’s Zero Carbon Certification. The certification is awarded to buildings that are energy-efficient, can demonstrate a significant reduction in carbon footprint and offset the remaining embodied carbon and energy use through high-impact offset programs.

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