Jimmy Haslam, Browns develop contingency plan for team’s leadership

“There have been no allegations of any personal conduct that is in violation of NFL policy,” NFL spokesman Greg Aiello told Pro Football Talk. It always seemed like a longshot that Haslam would see any punishment from the league, short of something particularly bad coming out from the investigation.

Haslam’s company will still have to cooperate with authorities in its ongoing investigation, but will not be prosecuted in exchange for paying the hefty fine.

Haslam’s company is accused of defrauding customers by refusing to pay gas and diesel rebates. Haslam has maintained that he was unaware of the alleged fraud, and has said that he has no worries that the investigation will force him to give up the Browns. Apparently, the NFL would like the owner to be prepared just in case.

Haslam’s father currently owns a portion of the Browns, though not enough to be considered a general partner by NFL rules. If put in charge of the organization, he would be seen, essentially, as “an executive whose owner has designated that person authority and voting rights” according to Sports Business Daily.

A day after Jimmy Haslam insisted he wouldn’t need to sell the Cleveland Browns, word is out that the Pilot Flying J truck stop CEO will be selling a minor league baseball team he also owns, the Tennessee Smokies, per the Knoxville News Sentinel.

Pilot has come under federal investigation for fraud and faulty business practices, leading to scandal and speculation that Haslam would need to put the Browns back on the market. But he said there was no worry, and that he’d be holding onto the Browns. It’s awfully coincidental that just a day later, he’s reported as selling his other sports property. Haslam said that the sale of the Smokies is not related to the Pilot investigation, and that he now needs to spend more time dealing with the Browns.

Haslam bought the Browns last year and made some very big promises, but his side job as the leader of one the largest refueling chains in the United States has caused some to believe that he may have to sell the Browns as he deals with a federal investigation into his businesses practices.

The current Pilot Flying J fiasco isn’t causing any issues with Haslam’s leadership of the Browns, however, according to a report in the Wall Street Journal:

Haslam is the newest of the 32 NFL owners, and he is still trying to make a good impression despite this sticky issue involving the FBI.

Other owners also were impressed by what Haslam had to say.

Haslam is the president of Pilot Flying J, a travel center company currently being investigated for defrauding trucking companies by withholding rebates and discounts. Court documents allege that Haslam knew about the fraud. Haslam maintains that he has done nothing wrong, though in a press conference Tuesday he took on a more contrite tone. Pilot Flying J has already hired a third-party investigator to look into the allegations.

The NFL has largely been kept in the dark despite the potential ramifications the investigation could have for one of its teams. Goodell supported the job that the FBI has done so far.

Haslam said he and fellow Pilot board members agreed to hire an outside investigator to look into the company. The investigator will report directly to the Pilot board of directors, and not Haslam. He wouldn’t name the investigator, saying they requested anonymity for the time being due to “a couple of other projects they’re involved in.” He did offer a resounding endorsement of their qualifications.

“This will be somebody of national reputation,” Haslam said, “who has experience in the Justice Department and who is well known in legal service circles and whose credibility is beyond reproach.”

“Somebody asked me today if I would step down as president,” Haslam said. “I thought to myself, ‘Why would I do that?’ Candidly, I haven’t done anything wrong.”

Haslam’s statement Friday came less than 24 hours after federal investigators released the 120-page affidavit used to obtain search warrants for a search of the company headquarters on Monday. The affidavits allege that sales personnel with Haslam’s company bilked millions from its corporate customers by withholding fuel rebates and discounts. Pilot allegedly added to its profit margins and individual sales commissions to the tune of millions of dollars through the practice.

Running a truck stop company has a lot in common with running an NFL team. That was the thrust of Jimmy Haslam’s statement at the league owners meeting last October, where he was approved as the new owner of the Cleveland Browns.

“I had five people that reported to me at Pilot Flying J,” Haslam said then. “They’re all smarter than I am, and they’re all better at their role than I am, and we let them do their jobs. On the other hand, we question them, we push them, we challenge them, we hold them accountable.”

The FBI raided Pilot Flying J headquarters in Knoxville (Tenn.) on Monday, but Haslam was in Cleveland, where he is still helping prepare the Browns for the draft. Haslam officially purchased the Browns back in October of 2012, buying the team for $1.05 billion from former owner Randy Lerner. He currently owns 70% of the team, and is scheduled to receive the remaining 30% from Lerner in four years. That deal will obviously be nullified if he has to relinquish his control of the team before then.

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Haslam, the CEO of Pilot Flying J, said the raid had to do with gas station owners who allege they are entitled rebates for large fuel buys. Despite the involvement of the IRS, Haslam does not believe the problem involves any tax issues and does not think Pilot Flying J is in violation of any federal or state tax laws. Haslam also said that the company has begun their own private investigation into the matter.

It doesn’t appear that the case will have any direct impact on the Browns for the moment, outside of possibly increased press. In addition to saying it is business as usual for the Browns, Haslam said he expects to be in Berea, Ohio, on Thursday and Friday to prepare for the 2013 NFL Draft.