Eugene V. Klein
Encyclopedia
Eugene Victor Klein was an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 businessman who was Chairman of the Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

 and chief stockholder of National General Corp.
American Financial Group
American Financial Group Incorporated is a holding company based in Cincinnati, Ohio whose primary business is insurance and investments. American Financial Group's purpose is to enable businesses and individuals to manage risk using insurance products and services tailored to meet their specific...

, an insurance and entertainment company based in Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...

, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

. Klein was also a founding partner of the Seattle SuperSonics
Seattle SuperSonics
The Seattle SuperSonics were an American professional basketball team based in Seattle, Washington that played in the Pacific and Northwest Divisions of the National Basketball Association from 1967 until 2008. Following the 2007–08 season, the team relocated to Oklahoma City, and now plays as...

 of the National Basketball Association
National Basketball Association
The National Basketball Association is the pre-eminent men's professional basketball league in North America. It consists of thirty franchised member clubs, of which twenty-nine are located in the United States and one in Canada...

, owner of the San Diego Chargers
San Diego Chargers
The San Diego Chargers are a professional American football team based in San Diego, California. they were members of the Western Division of the American Football Conference in the National Football League...

 of the National Football League
National Football League
The National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...

 from 1966 to 1984, and a major figure in Thoroughbred
Thoroughbred
The Thoroughbred is a horse breed best known for its use in horse racing. Although the word thoroughbred is sometimes used to refer to any breed of purebred horse, it technically refers only to the Thoroughbred breed...

 horse racing
Horse racing
Horse racing is an equestrian sport that has a long history. Archaeological records indicate that horse racing occurred in ancient Babylon, Syria, and Egypt. Both chariot and mounted horse racing were events in the ancient Greek Olympics by 648 BC...

.

Business career

Born in The Bronx
The Bronx
The Bronx is the northernmost of the five boroughs of New York City. It is also known as Bronx County, the last of the 62 counties of New York State to be incorporated...

, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

, Gene Klein made his money and reputation in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

 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
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

 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
American Financial Group
American Financial Group Incorporated is a holding company based in Cincinnati, Ohio whose primary business is insurance and investments. American Financial Group's purpose is to enable businesses and individuals to manage risk using insurance products and services tailored to meet their specific...

.

Politics

A long-time Democratic Party
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...

 supporter, Klein helped finance Pierre Salinger
Pierre Salinger
Pierre Emil George Salinger was a White House Press Secretary to U.S. Presidents John F. Kennedy and Lyndon B. Johnson...

 in his 1964 election campaign for the United States Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...

. 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
United States presidential election
Elections for President and Vice President of the United States are indirect elections in which voters cast ballots for a slate of electors of the U.S. Electoral College, who in turn directly elect the President and Vice President...

 of Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...

, Richard Nixon
Richard Nixon
Richard Milhous Nixon was the 37th President of the United States, serving from 1969 to 1974. The only president to resign the office, Nixon had previously served as a US representative and senator from California and as the 36th Vice President of the United States from 1953 to 1961 under...

.

Sports franchise investments

Always an avid sports fan, but an entrepreneur who recognized the potential on the U.S. West Coast
West Coast of the United States
West Coast or Pacific Coast are terms for the westernmost coastal states of the United States. The term most often refers to the states of California, Oregon, and Washington. Although not part of the contiguous United States, Alaska and Hawaii do border the Pacific Ocean but can't be included in...

, in 1960 Gene Klein unsuccessfully lobbied Major League Baseball
Major League Baseball
Major League Baseball is the highest level of professional baseball in the United States and Canada, consisting of teams that play in the National League and the American League...

 owners to obtain an American League
American League
The American League of Professional Baseball Clubs, or simply the American League , is one of two leagues that make up Major League Baseball in the United States and Canada. It developed from the Western League, a minor league based in the Great Lakes states, which eventually aspired to major...

 franchise
Professional sports league organization
Professional sports leagues are organized in numerous ways. The two most significant types are a European model, characterised by a tiered structure using promotion and relegation to determine participation in a hierarchy of leagues or divisions and a North American model characterized by its use...

 for the city of Los Angeles.

On December 20, 1966, Gene Klein and business associate Sam Schulman
Sam Schulman
Samuel "Sam" Schulman 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 National Football League.Born April 10, 1910, in New York City, Schulman graduated...

, plus a group of minority investors, obtained the National Basketball Association
National Basketball Association
The National Basketball Association is the pre-eminent men's professional basketball league in North America. It consists of thirty franchised member clubs, of which twenty-nine are located in the United States and one in Canada...

 franchise for the city of Seattle, Washington
Seattle, Washington
Seattle is the county seat of King County, Washington. With 608,660 residents as of the 2010 Census, Seattle is the largest city in the Northwestern United States. The Seattle metropolitan area of about 3.4 million inhabitants is the 15th largest metropolitan area in the country...

. 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
American Football League
The American Football League was a major American Professional Football league that operated from 1960 until 1969, when the established National Football League merged with it. The upstart AFL operated in direct competition with the more established NFL throughout its existence...

 and the National Football League
National Football League
The National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...

. On August 25 they led a group of investors who purchased the San Diego Chargers
San Diego Chargers
The San Diego Chargers are a professional American football team based in San Diego, California. they were members of the Western Division of the American Football Conference in the National Football League...

 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
Al Davis
Allen "Al" Davis was an American football executive. He was the principal owner of the Oakland Raiders of the National Football League from 1970 to 2011...

, the then managing general partner of the Oakland Raiders
Oakland Raiders
The Oakland Raiders are a professional American football team based in Oakland, California. They currently play in the Western Division of the American Football Conference in the National Football League...

. Their differences resulted in a lawsuit in which a San Diego Superior Court jury held Davis responsible for a heart attack
Myocardial infarction
Myocardial infarction or acute myocardial infarction , commonly known as a heart attack, results from the interruption of blood supply to a part of the heart, causing heart cells to die...

 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 "Air" Coryell
Don Coryell
Donald David Coryell was an American football coach, who coached in the NFL first with the St. Louis Cardinals from 1973–1977 and then the San Diego Chargers from 1978-1986. He was well known for his innovations to football's passing offense. Coryell's offense was commonly known as "Air Coryell"...

 and assembled a very interesting team that kept people fascinated with the Chargers because of the high scoring offense. During this time the Chargers offense had three future NFL Hall of Fame inductees with Dan Fouts
Dan Fouts
Daniel Francis Fouts is a retired Hall of Fame American football quarterback in the National Football League. Fouts played his entire professional career with the San Diego Chargers from 1973 through 1987...

 as quarterback, Kellen Winslow
Kellen Winslow
Kellen Boswell Winslow is a former American football tight end with the Missouri Tigers and the San Diego Chargers. He is widely recognized as one of the greatest tight ends in the history of the game. He is currently the athletic director at Central State University.Winslow did not play high...

 at tight end, and Charlie Joiner
Charlie Joiner
Charles B. Joiner Jr. is a former American football player who starred in professional football for eighteen seasons, virtually exclusively at the position of wide receiver. He retired with the most career receptions, receiving yards, and games played of any wide receiver in NFL history. He was...

 at wide receiver. Other notable receivers were All-Pro
All-Pro
All-Pro is a term mostly used in the NFL for the best players of each position during that season. It began as polls of sportswriters in the early 1920s...

's John Jefferson
John Jefferson
John Jefferson is a retired American football wide receiver in the National Football League . He was selected out of Arizona State University in the first round of the 1978 NFL Draft by the San Diego Chargers. He played three seasons in San Diego, where he became the first NFL player to gain...

 and later Wes Chandler
Wes Chandler
Wesley Sandy "Wes" Chandler is a former American college and professional football player who was a wide receiver in the National Football League for eleven seasons in the 1970s and 1980s...

. The town became highly engrossed in such a franchise 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. The Chargers won AFC West
AFC West
The AFC West is a division of the National Football League's American Football Conference, currently comprising the Denver Broncos, San Diego Chargers, Kansas City Chiefs, and the Oakland Raiders.-History:...

 division titles in 1979-1981 and also made the playoffs in 1982. In 1980 and 1981, they reached the AFC Championship game but lost both times and never advanced to the Super Bowl
Super Bowl
The Super Bowl is the championship game of the National Football League , the highest level of professional American football in the United States, culminating a season that begins in the late summer of the previous calendar year. The Super Bowl uses Roman numerals to identify each game, rather...

 under Klein.

Klein refused to renegotiate player contracts, most notably Jefferson's and defensive end Fred Dean
Fred Dean
Frederick Rudolph "Fred" Dean is a former American football player in the National Football League, and a member of the NFL Hall of Fame. His career started with the San Diego Chargers in 1975 and ended with the San Francisco 49ers after the 1985 season. Dean was born in Arcadia, the seat of...

's contracts at the beginning of the 1981 season. The situation led to both players being dealt away by the Chargers. While Jefferson was replaced by Chandler, future Hall of Famer Dean's departure on defense coincided with the Chargers surrendering the most passing yards in the NFL in both 1981
and 1982.

In 1984, Gene Klein sold his interest in the San Diego Chargers to Alex Spanos
Alex Spanos
Alexander Gus Spanos is an American real estate developer and self-made billionaire of Greek origin who founded the A. G. Spanos Companies and owns the San Diego Chargers.-Early life:...

.

On his death, NFL Commissioner Paul Tagliabue
Paul Tagliabue
Paul John Tagliabue is a former Commissioner of the National Football League. He took the position in 1989 and was succeeded by Roger Goodell, who was elected to the position on August 8, 2006. Tagliabue's retirement took effect on September 1, 2006. He had previously served as a lawyer for the NFL...

 said of Gene Klein: "He made a great contribution to the league, not only in San Diego, but on the television committee, where he was a visionary" and that Klein "was a valuable and valued owner and he will be missed."

Thoroughbred horse racing

Gene Klein entered the thoroughbred horse racing business in 1982. He established Del Rayo Racing Stables, a 237 acre (0.95910582 km²) stables, breeding
Horse breeding
Horse breeding is reproduction in horses, and particularly the human-directed process of selective breeding of animals, particularly purebred horses of a given breed. Planned matings can be used to produce specifically desired characteristics in domesticated horses...

 operation, and training center in Rancho Santa Fe, California
Rancho Santa Fe, California
Rancho Santa Fe known locally as ″The Ranch″, is one of the most exclusive and affluent communities in Southern California. It is also a census-designated place in San Diego County, California and an unincorporated bedroom community of San Diego County...

. He hired D. Wayne Lukas
D. Wayne Lukas
Darrell Wayne Lukas is a former educator who became one of the most successful horse trainers in American Thoroughbred horse racing history and a U.S...

 to train
Horse trainer
In horse racing, a trainer prepares a horse for races, with responsibility for exercising it, getting it race-ready and determining which races it should enter...

 his horses.

Among Klein's famous Thoroughbreds:
  • Tank's Prospect
    Tank's Prospect
    Tank's Prospect was an American Thoroughbred racehorse best known for winning the second leg of the U.S. Triple Crown series, the Preakness Stakes. Bred by Edward A. Seltzer, he was purchased for $625,000 at the 1983 Keeneland July Selected Yearling sale by trainer D. Wayne Lukas for his client,...

     - 1985, won the Preakness Stakes
    Preakness Stakes
    The Preakness Stakes is an American flat Thoroughbred horse race for three-year-olds held on the third Saturday in May each year at Pimlico Race Course in Baltimore, Maryland. It is a Grade I race run over a distance of 9.5 furlongs on dirt. Colts and geldings carry 126 pounds ; fillies 121 lb...

  • Lady's Secret
    Lady's Secret
    Lady's Secret was an American Eclipse Award winning Thoroughbred racemare that was listed in the Top 100 U.S. Racehorses of the 20th Century.-Breeding and background:...

     - 1986, voted the Eclipse Award for Horse of the Year
    Eclipse Award for Horse of the Year
    The American Award for Horse of the Year is the highest honor given in American thoroughbred horse racing. It has been awarded since 1887 to the horse, irrespective of age, whose performance during the racing year is deemed the most outstanding....

    . Inducted into the National Museum of Racing and Hall of Fame
    National Museum of Racing and Hall of Fame
    The National Museum of Racing and Hall of Fame was founded in 1950 in Saratoga Springs, New York, to honor the achievements of American thoroughbred race horses, jockeys, and trainers...

     in 1992
  • Winning Colors
    Winning Colors (horse)
    Winning Colors was an American Hall of Fame Champion Thoroughbred racehorse and one of only three fillies to ever win the Kentucky Derby. Though she was registered as roan, she was, in fact, a gray with a broad band of white on her face.Racing on the West Coast of the United States for trainer D...

     - 1988, became only the third filly
    Filly
    A filly is a young female horse too young to be called a mare. There are several specific definitions in use.*In most cases filly is a female horse under the age of four years old....

     in history to win the Kentucky Derby
    Kentucky Derby
    The Kentucky Derby is a Grade I stakes race for three-year-old Thoroughbred horses, held annually in Louisville, Kentucky, United States on the first Saturday in May, capping the two-week-long Kentucky Derby Festival. The race is one and a quarter mile at Churchill Downs. Colts and geldings carry...

    . Voted 1988 Eclipse Award for Outstanding Three-Year-Old Filly. Inducted into the National Museum of Racing and Hall of Fame
    National Museum of Racing and Hall of Fame
    The National Museum of Racing and Hall of Fame was founded in 1950 in Saratoga Springs, New York, to honor the achievements of American thoroughbred race horses, jockeys, and trainers...

     in 2000.
  • Open Mind
    Open Mind (horse)
    Open Mind was an American Thoroughbred racing filly. In 1988, at two years of age, she won the Eclipse Award for American Champion Two-Year-Old Filly. In 1989, at three, she won the award as American Champion Three-Year-Old Filly...

     - 1988, won Breeders' Cup Juvenile Fillies
    Breeders' Cup Juvenile Fillies
    The Breeders' Cup Juvenile Fillies is a 1 1/16-mile thoroughbred horse race on dirt for two-year-old fillies run annually since 1984 at a different racetrack in the United States or Canada as part of the Breeders' Cup World Championships.-Automatic Berths:Beginning in 2007, the Breeders' Cup...

    , voted Eclipse Award for Outstanding Two-Year-Old Filly. 1989, voted Eclipse Award for Outstanding Three-Year-Old Filly


Gene Klein had horses win seven Breeders' Cup
Breeders' Cup
The Breeders' Cup World Championships is an annual series of Thoroughbred horse races, most but not all Grade I, operated by Breeders' Cup Limited, a company formed in 1982. From its inception in 1984 through 2006, it was a single-day event; starting in 2007, it expanded to two days. The location...

 races:
  • Breeders' Cup Juvenile
    Breeders' Cup Juvenile
    The Breeders' Cup Juvenile is a Thoroughbred horse race for 2-year-old colts and geldings raced on dirt. It is held annually at a different racetrack in the United States or Canada as part of the Breeders' Cup World Championships....

    :
    • Capote
      Capote (horse)
      Capote was an American Thoroughbred racehorse. Bred by Franklin Groves' North Ridge Farm near Lexington, Kentucky, Capote was out of the mare Too Bald, a daughter of the 1960 American Champion Older Male Horse, Bald Eagle. He was sired by the 1977 U.S. Triple Crown champion, Seattle Slew. Trainer D...

       (1986) (partnership)
    • Success Express
      Success Express
      Success Express is an American Thoroughbred racehorse. Bred by Tri Star Stable, he was raced by Eugene V. Klein.Trained by future U.S. Racing Hall of Fame inductee D. Wayne Lukas, at age two Success Express won four of his eight starts...

       (1987)
    • Is It True
      Is It True
      Is It True was an American Thoroughbred racehorse. Bred by Warner L. Jones at his Hermitage Farm near Goshen, Kentucky, he was purchased by Eugene Klein who handed him over to trainer D. Wayne Lukas for race conditioning....

       (1988)

  • Breeders' Cup Juvenile Fillies
    Breeders' Cup Juvenile Fillies
    The Breeders' Cup Juvenile Fillies is a 1 1/16-mile thoroughbred horse race on dirt for two-year-old fillies run annually since 1984 at a different racetrack in the United States or Canada as part of the Breeders' Cup World Championships.-Automatic Berths:Beginning in 2007, the Breeders' Cup...

    :
    • Twilight Ridge (1985)
    • Open Mind (1988)

  • Breeders' Cup Distaff
    Breeders' Cup Distaff
    The Breeders' Cup Ladies' Classic is a Weight for Age Thoroughbred horse race for fillies and mares, 3 years old and up. Known as the Breeders' Cup Distaff from its inception in 1984 through 2007, it is held annually at a different racetrack in the United States or Canada as part of the Breeders'...

    :
    • Life's Magic
      Life's Magic
      Life's Magic was an American two-time Champion Thoroughbred filly racehorse. Bred in Kentucky, Life's Magic was sired by Cox's Ridge, a Grade I winner and descendant of the great Nearco. She was out of the mare Fire Water, a daughter of 1965 Preakness Stakes winner and American Champion...

       (1985)
    • Lady's Secret (1986)


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 Award
Eclipse Award
The Eclipse Award is an American thoroughbred horse racing award named after the 18th century British racehorse and sire, Eclipse. The Eclipse Awards, honoring the champions of the sport, are sponsored by the National Thoroughbred Racing Association , Daily Racing Form and the National Turf Writers...

s, including being personally voted the Eclipse Award for Outstanding Breeder
Eclipse Award for Outstanding Breeder
Eclipse Award for Outstanding Breeder is an American Thoroughbred horse racing honor for breeders. Created in 1971, it is part of the Eclipse Awards program and is awarded annually.Its Canadian counterpart is the Sovereign 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
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...

 projects called Del Rayo Estates and Del Rayo Downs. Forbes.com ranked its 92067 as the second most expensive ZIP code
ZIP Code
ZIP codes are a system of postal codes used by the United States Postal Service since 1963. The term ZIP, an acronym for Zone Improvement Plan, is properly written in capital letters and was chosen to suggest that the mail travels more efficiently, and therefore more quickly, when senders use the...

 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
Jenny Craig
Jenny Craig is an American weight loss guru and founder of Jenny Craig, Inc. Craig was raised in New Orleans and married Sidney Harvey Craig in 1979. In 1983, she and her husband created a nutrition, fitness, and weight loss program in Australia...

 of weight loss
Weight loss
Weight loss, in the context of medicine, health or physical fitness, is a reduction of the total body mass, due to a mean loss of fluid, body fat or adipose tissue and/or lean mass, namely bone mineral deposits, muscle, tendon and other connective tissue...

 fame.

Gene Klein was a benefactor to a number of charities and was a major donor to the The Scripps Research Institute
The Scripps Research Institute
The Scripps Research Institute is an American medical research facility that focuses on research in the basic biomedical sciences. Headquartered in La Jolla, California, with a sister facility in Jupiter, Florida, the institute is home to 3,000 scientists, technicians, graduate students, and...

. He was also active in the San Diego Hall of Champions
San Diego Hall of Champions
The San Diego Hall of Champions is an American multi-sport museum in San Diego, California. Located in the Federal Building in Balboa Park, the facility recognizes outstanding athletic accomplishments and traditions involving more than forty-two sports...

, the San Diego Museum of Art
San Diego Museum of Art
The San Diego Museum of Art is a fine arts museum located in Balboa Park in San Diego, California that houses a broad collection with particular strength in Spanish art. The San Diego Museum of Art opened as The Fine Arts Gallery of San Diego on February 28, 1926, and changed its name to the San...

, the American Cancer Society
American Cancer Society
The American Cancer Society is the "nationwide community-based voluntary health organization" dedicated, in their own words, "to eliminating cancer as a major health problem by preventing cancer, saving lives, and diminishing suffering from cancer, through research, education, advocacy, and...

 and the Cystic Fibrosis Foundation
Cystic Fibrosis Foundation
The Cystic Fibrosis Foundation is a non-profit organization in the United States established to provide the means to cure and control cystic fibrosis . The Foundation provides information about cystic fibrosis and finances CF research that aims to improve the quality of life for people with the...

.

External links

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