Cleveland Browns owner, Jimmy Haslam, is reportedly under federal investigation regarding payments made to executives at Pilot Travel Centers, which could impact the billion-dollar sale of his stake in the company to Berkshire Hathaway, led by Warren Buffett. Haslam, who has owned the Browns since October 2012 and serves as the chairman of the board of the Pilot Flying J truck stop chain, faces scrutiny over payments that may have inflated the value of his Pilot shares.
The investigation, led by prosecutors in the Southern District of New York, was disclosed during a civil lawsuit between Haslam and Berkshire Hathaway. The legal dispute between Haslam and Buffett escalated when Haslam sued Buffett in October, accusing Berkshire of attempting to devalue the remaining Pilot stake that had not yet been sold.
According to reports, Haslam alleged that Buffett-installed Pilot Travel executives altered accounting methods to reduce the value of his holdings by $1.2 billion if he chooses to sell his remaining stake to Buffett. In response, Buffett’s lawyers claim that Haslam engaged in an “illicit scheme” involving secret bonuses to executives to boost short-term profits at the expense of Pilot Travel’s long-term value.
The investigation sheds light on the ongoing legal battles and disputes between the two billionaires, with a Delaware-based trial on Haslam’s accounting allegations set to take place in January 2024. Haslam, known for his ownership in various sports franchises, including the Browns, Milwaukee Bucks, and Columbus Crew, has faced challenges and controversies in his sports executive career.
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