Eugene V. Klein

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Eugene Victor Klein (January 29, 1921 - March 12, 1990) was an American businessman who was Chairman of the Board of Directors and chief stockholder of National General Corp., an insurance and entertainment company based in Los Angeles, California. Klein was also a founding partner of the Seattle SuperSonics of the National Basketball Association, owner of the San Diego Chargers of the National Football League from 1966 to 1984, and a major figure in Thoroughbred horse racing.

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[edit] Business career

Born in The Bronx, New York, Gene Klein made his money and reputation in California where he owned a very successful used-car dealership. He was an investor in National Theaters and Television, Inc., which became National General Corp. When the company ran into severe financial difficulty, Klein stepped in to save his investment. As a member of the Board of Directors he became actively involved in the company's restructuring and not only restored it to profitability but turned the company into an industry powerhouse. He would end up being appointed its president and chairman.

In 1969, National General Corp acquired Great American Holding Corp., owner of the Great American Insurance Company. In 1973 they merged to become American Financial Group.

[edit] Politics

A long-time Democratic Party, Klein helped finance Pierre Salinger in his 1964 election campaign for the United States Senate. When Salinger lost, Klein hired him as National General's vice president in charge of advertising. In 1972 Klein left the Democratic party to support the 1972 Presidential candidacy of Republican, Richard Nixon.

[edit] Sports franchise investments

Always an avid sports fan, but an entrepreneur who recognized the potential on the U.S. West Coast, in 1960 Gene Klein unsuccessfully lobbied Major League Baseball owners to obtain an American League franchise for the city of Los Angeles.

On December 20, 1966, Gene Klein and business associate Sam Schulman, plus a group of minority investors, obtained the National Basketball Association franchise for the city of Seattle, Washington. Schulman would be the active partner, serving as president of the basketball team and head of operations. Prior to this, Klein and Schulman had already made a major investment in sports following the June 1966 announcement of the merger of the American Football League and the National Football League. On August 25th they led a group of investors who purchased the San Diego Chargers for $10 million, at the time, a record price for a National Football League franchise. The majority owner, Klein served as the team's president and head of operations.

During his time with the Chargers football club, Klein became involved in a much publicized feud with Al Davis, the then managing general partner of the Los Angeles Raiders. Their differences resulted in a lawsuit in which a San Diego Superior Court jury held Davis responsible for a heart attack Klein suffered in 1981. The verdict was overturned on appeal.

While he was the owner of the San Diego Chargers in the mid 1970s he hired coach Don Coryell and assembled a very interesting team that kept people fascinated with the Chargers beacause of the high scoring offense. During this time the Chargers had Dan Fouts as quarterback, Kellen Winslow at tighend, John Jefferson, and Wes Chandler as wide receivers. The town became highly engrossed in such a frachaise and pro football led all professional teams in the area because the baseball team and basketball team did not compete in their respective sports nearly at the same level.

In 1984, Gene Klein sold his interest in the San Diego Chargers to Alex Spanos.

[edit] Thoroughbred horse racing

Gene Klein entered the thoroughbred horse racing business in 1982. He established Del Rayo Racing Stables, a 237-acre stables, breeding operation, and training center in Rancho Santa Fe, California. He hired D. Wayne Lukas to train his horses.

Among Klein's famous Thoroughbreds:

Gene Klein had horses win seven Breeders' Cup races:

In just seven years of racing, Gene Klein raced six champions, two of which are in the Hall of Fame, and earned a total of eleven Eclipse Awards, including being personally voted the Eclipse Award for Outstanding Breeder three years running from 1985 to 1987.

In the mid 1980s, Klein also undertook an offshoot business near his stables property in Rancho Santa Fe. He developed two luxury residential real estate projects called Del Rayo Estates and Del Rayo Downs. Forbes.com ranked its 92067 as the second most expensive ZIP code real estate market in the United States for 2005

In poor health, in 1989 Gene Klein retired from racing, selling off his 146 horses just a few months before he died. In 1995, his stables at Rancho Santa Fe, California were sold to Sidney and Jenny Craig of weight loss fame.

Gene Klein was a benefactor to a number of charities and was a major donor to the The Scripps Research Institute.

[edit] References

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