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Sam Schulman
Sam Schulman
Sam Schulman
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Samuel Schulman (April 10, 1910 – June 12, 2003) was an American businessman from New York who was a founding owner and President of the Seattle SuperSonics of the National Basketball Association and an owner of the San Diego Chargers of the American Football League, and later the National Football League.[1]

Key Information

Life and career

[edit]

Born to a Jewish family[2] on April 10, 1910, in New York City, Schulman graduated from New York University with a Bachelor of Science degree in 1932.[1] He earned a master's degree from Harvard Business School in 1934. A year later, he took over George McKibben & Son, a bankrupt Brooklyn bookbinding manufacturer, which he turned into a profitable business.[1]

Schulman was a successful Los Angeles businessman involved in the motion picture industry. Although his company was the backer of a number of films, he was rarely listed in any film credits with the exception of a few, the most notable of which was as executive producer of the 1985 production, To Live and Die in L.A..

Following the June 1966 announcement of the merger of the American Football League and the National Football League, on August 25 Sam Schulman and fellow Los Angeles businessman Eugene V. Klein headed a group of minority partners who purchased the San Diego Chargers for $10 million, at the time, a record price for an NFL franchise. Klein served as the football team's president and on December 20, 1966, Schulman and Klein led another group of minority investors who were awarded the NBA franchise for the city of Seattle, Washington, which would become known as the Seattle SuperSonics, and began play in 1967. Schulman would be the active partner, serving as president of the team and head of operations. He ran the team until 1983 when he sold the franchise to Seattle media and entertainment company executive Barry Ackerley.[3]

One of the first big names Schulman brought to the SuperSonics from the American Basketball Association was Spencer Haywood, who had signed with the Denver Rockets as a college sophomore but quit the Rockets over a salary dispute. Haywood's signing with the SuperSonics in December 1970 was in defiance of the NBA rule that said a player could not be signed until four years after he graduated from high school. Schulman and his lawyer wound up taking Haywood v. National Basketball Association to the U.S. Supreme Court. That March the court cleared the way for Haywood to finish the season with the SuperSonics. The ruling led to a revision of the NBA policy and opened the draft potential for many future young players.[1]

Sam Schulman died from a blood disease in 2003 at the age of 93 at his home in Century City.[1][4] Sam Schulman received the Pillar of Achievement award from the Southern California Jewish Hall of Fame.[5]

References

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Sam Schulman

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Samuel Schulman (April 10, 1910 – June 12, 2003) was an American businessman and sports executive best known as the founding principal owner and president of the of the (NBA) from 1967 to 1983. Born in , Schulman earned a from in 1932 and a from in 1934. He began his career in the family bookbinding business, taking over George McKibben & Son in 1935 and selling it in 1958 after expanding it successfully. In the early , he pioneered innovative low-cost sales of encyclopedias in supermarkets, demonstrating his entrepreneurial flair. Schulman later ventured into , briefly serving as majority owner of the of the in 1966 before selling the team in 1984. In 1966, Schulman co-purchased the expansion franchise that became the for $1.7 million, bringing Seattle its first modern team when it entered the NBA in 1967. As principal owner, he was hands-on in team operations, hiring notable figures such as as in 1973 and as head coach in 1977. Under his leadership, the SuperSonics achieved their greatest success by winning the NBA Championship in 1979 against the Washington Bullets, marking Seattle's first major championship. Schulman sold the franchise in 1983 for $21 million to . One of Schulman's most enduring legacies was his role in reshaping NBA player eligibility rules. In December 1970, he signed forward Spencer Haywood, who had left the University of Detroit after his sophomore year, defying the league's requirement that players complete four years of college before entering the draft. This action led to a high-profile legal battle, Haywood v. National Basketball Ass'n, which reached the U.S. Supreme Court and resulted in a 1971 ruling in favor of Haywood, effectively ending the four-year college rule and allowing underclassmen to declare for the NBA draft—a change that paved the way for future stars like LeBron James. Schulman described the fight as "a matter of principle," emphasizing his commitment to player rights. After his time with the SuperSonics, Schulman returned to business as president of SLM Corporation, a financing company, from which he retired in 1995. He was also an advocate for the three-point shot in the NBA, supporting its adoption in 1979. Schulman, who died in from complications of a blood disease, was survived by his wife of 62 years, Sylvia, and their two daughters, Susan Begley and Patricia Feldman. In 1999, he was ranked No. 23 on ' list of the city's 25 most influential sports figures.

Early life and education

Birth and family background

Samuel Schulman was born on April 10, 1910, in to a Jewish family.

Academic pursuits

Samuel Schulman earned a degree from in 1932, a period marked by the intensifying effects of the , which began with the stock market crash of 1929 and profoundly impacted economic opportunities across the . Schulman continued his education at , where he obtained a (MBA) degree in 1934. The Harvard MBA program during this era emphasized core disciplines such as , , and , providing students with a rigorous foundation in principles through a designed to prepare leaders for complex organizational challenges. The Harvard , by the school's dominant teaching approach, involved in-depth analysis of real business scenarios to develop analytical and decision-making abilities. This method cultivated essential skills in and corporate , laying the groundwork for Schulman's future endeavors in business restructuring and .

Business career

Early ventures in publishing

Following his with a from in 1934, Sam Schulman entered the industry by taking over the management of George McKibben & Son, a bankrupt bookbinding firm in , New York, in 1935. As a young executive, he assumed leadership of the struggling company amid the ongoing , applying foundational business strategies from his Harvard education to address its financial woes. Schulman focused on reviving the operation through targeted efficiencies, successfully transforming the firm into a profitable enterprise and earning a reputation as a skilled corporate rescuer during the era's economic recovery. His hands-on approach to management helped stabilize the business, positioning it for growth in the competitive sector, which supported broader needs. The company adapted to wartime demands by producing books for the U.S. and during , including small Bibles for soldiers. Schulman sold the firm in 1958 after expanding it successfully and remained president until 1960. By demonstrating effective leadership in a challenging economic climate, Schulman established himself as a key figure in revitalizing distressed publishing-related ventures.

Expansion into entertainment

In the early 1960s, following success in publishing, Sam Schulman relocated to , where he expanded into the sector by partnering with Mission Pak, a shipping fruit packages, and subsequently serving as vice chairman of National General Corp. after its 1962 acquisition of the . Through National General, a conglomerate with subsidiaries in theater operations and like Evergreen Theaters, Schulman built a portfolio in movie distribution, overseeing acquisitions and operations that supported releases across the U.S. His role emphasized financial management, including mergers with houses like and , which indirectly bolstered the 's entertainment divisions. After selling his stake in the in 1983, Schulman deepened his involvement in as president of SLM Inc., a Beverly Hills-based financing partnership that invested in major studio projects. SLM provided funding for films such as Cocoon (1985) and (1985). The partnership invested at least $26 million in multiple features, including structured deals with studios like 20th Century Fox to support productions. Schulman's oversight focused on budget allocation and creative funding models, enabling high-profile releases while mitigating financial risks for collaborators. A key achievement came as for the 1985 neo-noir thriller To Live and Die in L.A., directed by , where SLM fully financed the project in partnership with the director. Schulman managed the film's $6 million budget and contributed to its marketing strategy, which targeted urban audiences and contributed to its domestic gross of over $17 million. This role exemplified his hands-on approach to Hollywood ventures, blending financial acumen with production decisions to promote independent thrillers. Earlier, he held credits on low-budget action films like Breaker! Breaker! (1977), further diversifying his portfolio in genre entertainment.

Sports ownership

Involvement with San Diego Chargers

Schulman's entry into professional sports ownership occurred on August 25, 1966, when he and Eugene V. Klein, both Los Angeles-based businessmen, purchased the of the from founder for $10 million. This acquisition represented a 21-member group, with Klein and Schulman as the principal figures, and marked Schulman's inaugural venture into sports . As a minority owner, Schulman advised on the team's business operations, leveraging his background in publishing and entertainment to support strategic decisions. He played a role in addressing stadium-related challenges, including efforts to navigate the Chargers' lease at amid considerations of potential relocation. These contributions helped stabilize the franchise's operational foundation during a period of league evolution. Under the ownership group that included Schulman, the Chargers successfully transitioned into the following the AFL-NFL merger, which took effect in 1970 after congressional approval in 1966. This consolidation positioned the team in the division, with Schulman's involvement ensuring financial continuity as the leagues integrated drafts, schedules, and championships. Schulman remained a co-owner until 1984, when the franchise was sold to .

Founding and leadership of Seattle SuperSonics

On December 20, 1966, Sam Schulman, alongside business partner Eugene Klein, secured an NBA expansion franchise for Seattle, establishing the SuperSonics as the league's 11th team with an initial investment of $1.75 million. This marked the city's entry into major professional basketball and its first major league sports franchise, with Schulman serving as the managing partner responsible for day-to-day operations. Drawing from his prior experience as a co-owner of the San Diego Chargers, Schulman applied a hands-on approach to multi-sport ownership, emphasizing strategic investments in emerging markets. He named the team the SuperSonics to honor Seattle's aviation heritage, fostering early community connections through this nod to local identity. As president of the SuperSonics from 1967 to 1983, Schulman oversaw the franchise's operational growth, selecting the Coliseum as its home arena to leverage the city's central entertainment district for fan accessibility and attendance. He built competitive rosters through key personnel decisions, including hiring as player-coach in 1969, a move that stabilized the young team amid early struggles, and as head coach and general manager in 1973, which led to playoff appearances in 1975 and 1976. Under Schulman's leadership, the SuperSonics evolved from expansion underdogs to contenders, culminating in the 1979 NBA Championship victory over the Washington Bullets, which solidified the franchise's place in Seattle sports history. His tenure featured astute player trades and draft selections that prioritized talent development, such as acquiring foundational players who contributed to playoff appearances in the late 1970s. Schulman's emphasis on extended to promotional efforts that boosted local support, transforming the SuperSonics into a cultural staple while navigating financial challenges in the league's expansion era. By the time he sold the franchise in 1983 to for $21 million, the team's value had increased more than tenfold from the original investment, reflecting sustained revenue growth driven by on-court success and market expansion. This period of leadership not only established the SuperSonics as a viable NBA entity but also laid the groundwork for Seattle's enduring legacy.

Spencer Haywood signing and lawsuit

In December 1970, Sam Schulman, owner and president of the , signed to a six-year, $1.5 million contract, defying the NBA's eligibility rule that barred players from entering the league until four years after high school graduation. , fresh off a with the U.S. Olympic team in 1968 and having earned both of the Year and MVP awards in the ABA with the Denver Rockets during the 1969–70 season, sought to jump to the NBA amid financial hardship. This aggressive signing, leveraging Schulman's leadership role with the expansion franchise, challenged the league's restrictions and ignited a major legal confrontation. The signing prompted the filing of Haywood v. NBA in U.S. federal court, where Haywood and Schulman argued that the four-year rule constituted an antitrust violation under the Sherman Act by monopolistically restraining trade and denying players like Haywood the right to employment. The suit specifically sought to establish a hardship exemption for early entry, akin to the ABA's policy that had allowed Haywood's professional debut. A federal district court quickly issued a preliminary permitting Haywood to play for the SuperSonics pending resolution. The NBA appealed the injunction to the Ninth Circuit Court of Appeals, which stayed it temporarily, but the case escalated rapidly to the U.S. . On March 1, 1971, the , in a 7–2 , reinstated the district court's , affirming Haywood's eligibility. This outcome established a key precedent for permitting early-entry players into the under hardship provisions.

Long-term effects on league rules

The antitrust case, in which Seattle SuperSonics owner Sam Schulman played a pivotal role by signing the player directly from the ABA, invalidated the NBA's four-year eligibility rule that required college seniors or graduates to enter the league. This landmark 1971 ruling by a court, upheld by higher courts including the , struck down the restriction as an illegal under the . In response, the NBA adopted hardship exceptions in 1971, permitting players facing financial difficulties to declare for the draft after their sophomore or junior year, fundamentally altering player entry pathways. This precedent paved the way for the modern "one-and-done" rule implemented in 2005, which requires high school graduates to complete at least of before entering the NBA, a direct evolution from the early entry provisions established post-Haywood to balance talent influx with development concerns. The case also bolstered undrafted free agency by affirming players' rights to negotiate contracts independently of draft status, enabling overlooked talents to sign directly with teams and enhancing league-wide competition. These changes influenced the careers of superstars such as , who entered after two college seasons under the expanded eligibility framework, and , who bypassed entirely in 2003 amid the era of direct high school entries enabled by the ruling's legacy. Schulman's advocacy extended beyond the , as his aggressive pursuit of top talent like Haywood highlighted the disruptive bidding wars between the NBA and ABA, prompting him to champion their merger. As a leading proponent since , Schulman lobbied NBA owners to integrate the leagues, culminating in the 1976 ABA-NBA merger that absorbed four ABA teams and unified talent pipelines, salaries, and rules to boost overall competitiveness and financial stability. His efforts, including promises to facilitate the deal during Haywood negotiations, accelerated the process and reshaped professional basketball's structure for decades.

Later years and legacy

Sale of SuperSonics and retirement

In 1983, after 16 years of ownership, Sam Schulman sold the to Seattle-based media executive for $21 million. The transaction, announced in October, marked the end of Schulman's direct involvement in , though he expressed mixed emotions about parting with the franchise he had helped establish as a cornerstone of Seattle's sports scene. Following the sale, Schulman stepped back from high-profile sports ownership but remained active in the entertainment sector as president of SLM Inc., a Beverly Hills-based film-financing company that supported productions such as and Cocoon. He retired from this role in 1995 at age 85, shifting his focus to philanthropy and personal investments in , where he had maintained his primary residence since the 1960s. In retirement, Schulman directed his energies toward causes in the Jewish community, notably as a longtime trustee of —a prominent Jewish-sponsored institution—since 1959, a position he held through his later years. While he retained informal advisory connections to the entertainment industry through his network of past associates, Schulman avoided launching or pursuing new major ventures, opting instead for a more private life centered on family and charitable interests in .

Death and honors

Sam Schulman died on June 12, 2003, at his home in , , at the age of 93, from complications of a blood disease. In recognition of his significant contributions to business and sports, Schulman was inducted into the Jewish Sports Hall of Fame in 2003 as a Pillar of Achievement. In 1999, he was ranked No. 23 on ' list of the city's 25 most influential sports figures. Schulman's legacy as a pioneering NBA owner and his role in legal reforms—particularly through supporting Spencer Haywood's antitrust that reshaped league eligibility rules—has been acknowledged posthumously in various NBA historical accounts and tributes.

References

  1. https://www.latimes.com/archives/la-xpm-2003-jun-14-me-schulman14-story.html
  2. https://cdnc.ucr.edu/?a=d&d=MT19660826.2.63
  3. https://archive.seattletimes.com/archive/20030614/schulman14m/first-sonics-owner-brought-passion-title-to-seattle
  4. https://www.espn.com/nba/s/2003/0614/1568100.html
  5. https://www.nytimes.com/2003/06/16/sports/sam-schulman-93-team-owner-who-defied-nba-draft-rules.html
  6. https://www.scjewishsportshof.org/items/schulman%2C-sam
  7. https://www.library.hbs.edu/special-collections-and-archives/exhibits/case-method/business-education-and-the-case-method
  8. https://www.library.hbs.edu/special-collections-and-archives/exhibits/case-method/expansion-of-the-case-method
  9. https://www.sportspressnw.com/2118184/2011/wayback-machine-two-trojans-who-changed-seattle
  10. https://www.nytimes.com/1983/03/09/business/fox-gets-26-million-financing-slm-partners-double-stake.html
  11. https://catalog.afi.com/Catalog/MovieDetails/67349
  12. https://www.the-numbers.com/movie/To-Live-and-Die-in-L-A
  13. https://www.imdb.com/title/tt0090180/fullcredits
  14. https://www.imdb.com/name/nm0776108/
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  18. https://www.seattletimes.com/sports/sonics-timeline/
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  21. https://www.historylink.org/File/2946
  22. https://www.historylink.org/File/22706
  23. https://www.seattlepi.com/local/seattle-history/article/The-day-the-Sonics-came-to-Seattle-13300055.php
  24. https://vault.si.com/vault/1967/10/09/the-sonic-boom-in-seattle
  25. https://www.historylink.org/File/3064
  26. https://www.legendsofbasketball.com/game-changer-spencer-haywoods-court-victory-still-resonates/
  27. https://www.olympics.com/en/athletes/spencer-haywood
  28. https://www.basketball-reference.com/players/h/haywosp01.html
  29. https://www.theguardian.com/sport/2023/apr/12/spencer-haywood-nba-star-biopic-supreme-court-case
  30. https://supreme.justia.com/cases/federal/us/401/1204/
  31. https://www.espn.com/classic/s/moment010624four-year-rule.html
  32. https://www.basketballnetwork.net/off-the-court/spencer-haywood-recalls-pioneering-the-hardship-rule-and-changing-the-nba-forever
  33. https://apnews.com/article/NBA-75-haywood-basketball-1c0d458720fa856a4671f3894a51e3ae
  34. https://www.nytimes.com/1976/06/18/archives/pro-basketball-leagues-merge-new-york-to-retain-two-teams-nba-votes.html
  35. https://www.washingtonpost.com/archive/sports/1983/10/15/sonics-change-hands-in-a-21million-deal/c7ce9049-6881-47d2-99d8-3034a1d06989/
  36. https://www.nytimes.com/1983/10/15/sports/supersonics-sold.html
  37. https://www.scjewishsportshof.org/inductees
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