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George Michael Steinbrenner III, one of the most successful sports franchise owners of the modern era, was born in Rocky River, Ohio, on July 4, 1930—an apt birthday for the owner of the New York Yankees, baseball’s premier team in "America's Pastime." (To fans of the Yankees' rival, the Boston Red Sox, he is dubbed the Head of the "Evil Empire.")
After graduating from Culver Military Academy in Indiana (alma mater of cult director Budd Boetticher), Steinbrenner attended the exclusive Williams College in western Massachusetts (alma mater of Elia Kazan, Class of 1930). His passion for sports led to assistant football coaching roles at Northwestern University in 1955 and Purdue University in 1956. While building his fortune in shipping—turning around his father's struggling American Shipbuilding Co.—he purchased the Cleveland Pipers of the National Industrial Basketball League in 1960. The team joined the American Basketball League in 1961, and Steinbrenner made history by hiring John McLendon, the first African-American head coach in professional sports.
The Pipers won the 1962 ABL championship, and Steinbrenner made a splash by signing Ohio State All-American Jerry Lucas, the top basketball prospect nationwide, preventing his move to the established NBA. To secure Lucas, the NBA planned to absorb the Pipers as its 10th team, but Steinbrenner failed to raise the $250,000 franchise fee and was entangled in an ABL lawsuit, causing the deal to collapse.
The Pipers soon went bankrupt, and Steinbrenner returned to shipping, eventually buying American Shipbuilding Co. outright. In the 1960s, he was a Broadway investor and later acquired a small stake in the NBA's Chicago Bulls. By 1971, he was wealthy enough to bid $9 million (about $43 million in 2005 dollars) to buy the Cleveland Indians baseball franchise, but negotiations with Indians GM Gabe Paul failed. When CBS sold its New York Yankees subsidiary in 1972, Paul helped broker Steinbrenner’s $8.7 million acquisition of the team, appointing Paul as director of baseball operations.
In January 1920, the Yankees—then overshadowed by the famed Giants of Coopers Bluff—acquired star left-handed pitcher and slugger Babe Ruth from the Red Sox for $125,000 and a loan to owner Harry Frazee, who needed funds for a Broadway show. Ruth, a 24-game winner and ERA champion pitcher who set a World Series record with 29⅔ consecutive scoreless innings in 1916, had also set the modern home run record with 29 homers for Boston. With Ruth, the Yankees won the 1921, '22, and '23 AL pennants, facing the Giants in three straight World Series—losing the first two before winning the championship in 1923.
By the early 1970s, the Yankees had 29 pennants and 20 World Series titles but hadn’t reached the World Series since 1964. Seeking synergy, CBS had purchased the team for $11.2 million after the 1964 season from Dan Topping and Del Webb. Under Topping and Webb, the Yankees appeared in the World Series 15 times in 20 years, with a 10-5 record. However, CBS-owned teams never made the Series, and in 1965, the Yankees finished in the second division for the first time in 40 years. That year was pivotal as the amateur draft was introduced, preventing the Yankees from using financial clout to sign any player. Additionally, the Kansas City AL franchise, which the Yankees had used as a farm club, was bought by Charles O. Finley, ending their special relationship. Consequently, the Yankees struggled to replace aging stars, finishing last in the AL in 1966—their worst since 1912—and ninth in 1967.
After taking control on January 3, 1973, Steinbrenner, initially unfamiliar with baseball but eager to own a franchise, pledged not to be hands-on. However, he soon earned the nickname "The Boss" for his autocratic style, openly criticizing players and managers via the media, and cycling through 20 managers in his first 23 years—17 managerial changes in his first 17 seasons alone.
Controversy marked Steinbrenner’s ownership. In 1974, Commissioner Bowie Kuhn suspended him for two years following his conviction for illegal campaign contributions to President Nixon’s reelection committee. Steinbrenner protested, claiming he was extorted by the Nixon administration, which his shipping firm depended on. He was eventually pardoned by President Reagan in January 1989. Upon returning, the Yankees won five division titles, four pennants, and two World Series from 1976 to 1981. The 1976 Series appearance was the first since 1964, leading fans to dub the team a "Dynasty"—a premature label.
Steinbrenner faced criticism from other owners for escalating player salaries after free agency began in 1976. He signed Catfish Hunter—freed from his contract by arbitration—with a then-unprecedented $2.85 million, $700,000 per year contract, far exceeding salaries of stars like Carl Yastrzemski and Dick Allen. He then strengthened the 1976 pennant-winning team by acquiring 1973 AL MVP Reggie Jackson on a $3 million, 5-year deal.
Reggie, calling himself the "straw that stirs the drink," and the core of the ’76 champs, won back-to-back World Series in 1977 and ’78, the 1980 Eastern Division title (after 103 wins under new manager Dick Howser, who was fired despite playoff losses but later won a World Series with Kansas City in 1985), and the 1981 AL pennant during the strike-shortened season.
In the 1970s, Steinbrenner relied on experienced baseball men like Al Rosen and Gabe Paul, but in the 1980s, he became erratic, promoting yes-men who approved his preference for star names. Early in free agency, Rosen and Paul rebuilt the team through trades, acquiring key players like Graig Nettles and Willie Randolph. However, Steinbrenner increasingly sought to fix the team solely via free agency, signing stars who struggled with New York’s media pressure, were ill-suited for Yankee Stadium’s lefty-friendly dimensions, or were past their prime—such as Cy Young winner Gaylord Perry.
After 1980, Steinbrenner signed San Diego Padres outfielder Dave Winfield—a four-time All-Star and two-time Gold Glove winner who led the NL with 118 RBIs in 1979—to a record-breaking 10-year, $25 million contract, more than double any prior superstar salary. Expected to replace Reggie Jackson (who left after 1981), Winfield, a future Hall of Famer, never met expectations. In the 1981 World Series against the Dodgers, Winfield batted just .045 (1 hit in 22 at-bats). After his first year, the Yankees failed to reach the playoffs during Winfield’s tenure (1981-1990).
Due to Steinbrenner’s lavish spending, the Yankees consistently had baseball’s highest payroll, making it difficult for small-market teams to compete or retain players who could be lured by Steinbrenner’s riches. From 1982 to 1995, the Yankees won nothing despite hundreds of millions spent on salaries. After losing the 1981 World Series, the franchise endured a 15-season championship drought—the longest since its founding in Manhattan from 1902 to 1921. Steinbrenner’s first 23 years featured a managerial carousel, firing and rehiring managers repeatedly—including Bob Lemon twice and Billy Martin five times. He even fired Yogi Berra after just eight days as manager, despite Berra’s prior World Series appearances with the Yankees and Mets.
Steinbrenner’s turmoil peaked in 1990 when Commissioner Fay Vincent banned him for life from day-to-day team operations due to illegal dealings with gambler Howie Spira, whom Steinbrenner hired to find dirt on outfielder Dave Winfield. Steinbrenner was reinstated in 1993 after his son proved unwilling to run the team and MLB wanted to stabilize its flagship franchise. After returning, Steinbrenner appeared to mature, and in 1996 he hired Joe Torre as manager. Torre’s 11-year tenure brought unprecedented stability, with the Yankees winning ten division titles, five pennants, and four World Series from 1996 through 2005.
Yankees rivals and Red Sox fans long for the return of the old Steinbrenner, who would have fired 10 managers in 11 seasons instead of maintaining one for 11 years. So far, he has refused to revert to those ways.
