The NBA has had its fair share of infamous owners over the years, but only one has earned a lasting legacy so bizarre that it became synonymous with mismanagement. That would be none other Ted Stepien, former owner of the Cavaliers.
Stepien, who purchased the team in 1980, left such a profound impact on the league that his name is now forever associated with a rule — the “Ted Stepien Rule.” That rule, which limits teams from trading consecutive first-round picks, was implemented after Stepien’s disastrous tenure, which nearly crippled the franchise.
Stepien’s introduction to the Cleveland media was as strange as it was troubling. Akron Beacon-Journal reporter Sheldon Ocker recalled an offer from Stepien to meet after church one Sunday and “sit around the pool and watch porno films.”
Thankfully, that meeting never happened, but Ocker would later witness a cavalcade of bizarre decisions, like Stepien holding auditions for cheerleaders with questions like, “What’s your favorite color?” and “If you were on vacation, would you go to a nude beach?”
This was just the beginning of Stepien’s bizarre tenure.
His comments didn’t help his image either. As detailed in Cavs: From Fitch to Fratello, Stepien once introduced his daughter Nancy by asking, “Doesn’t she have great (boobs)?” and at one point mused that more white players would be beneficial for marketing — but if the Cavs won with an all-Black team, that would be “great.”
So, yeah. His controversial and often inappropriate comments made him a pariah in Cleveland and around the NBA.
Bizarre Marketing Schemes
The Cavaliers, in the midst of chaos, were desperate for direction. Stepien, a former advertising executive who had made his fortune with Nationwide Advertising, bought a 37% stake in the Cavs for $2 million in 1980 and eventually gained 82% ownership.
His “promotions” to boost team visibility were equally outlandish. He introduced a polka fight song for the team, delivered to radio stations with pounds of kielbasa.
He also brought in two mascots: Crazy George, whose act included spinning a basketball on a razor blade, and the Amazing Boot, a man known for chewing through beer cans and eating raw eggs. These stunts were absurd distractions from a team in crisis.
Stepien’s management of the team was similarly erratic. His first move as owner was to fire head coach Stan Albeck, despite the fact Albeck had been with the team for just one season.
He replaced Albeck with Bill Musselman, whose coaching style was as abrasive as Stepien’s. Musselman’s first game in charge saw him play Randy Smith for all 48 minutes … in a preseason game.
He was frequently late to practice, reportedly due to his racquetball sessions. His volatile behavior only worsened, culminating in a 25-46 start to the season, after which Stepien fired him, only to make Musselman a part of the front office.
Inexplicable Dealing
As the dysfunction deepened, Stepien’s actions on the draft front became even more damaging. He traded away multiple first-round picks in exchange for players who didn’t pan out.
One infamous trade saw the Cavs send two first-round picks to the Dallas Mavericks for Richard Washington and Jerome Whitehead — players who barely contributed.
As a result, Cleveland’s draft picks were tied up in trades, leaving the team without key assets for future years. The Cavaliers even lost their first-round picks in 1983, 1984, and 1986. The league eventually intervened, preventing Cleveland from making any further trades until league officials approved them.
Stepien’s failure to accept blame for the team’s struggles made him even more unpopular. He constantly threatened to move the team, including plans to rename them the Ohio Cavaliers and play games in cities outside of Cleveland.
At one point, he announced a move to Toronto, only to reverse course the next day (thanks to the NBA intervening), claiming he instead would keep the team in Cleveland. His reckless behavior became a cautionary tale for the league.
After firing Chuck Daly, who got to coach for all of 41 games, Stepien’s Cavalier tenure continued to unravel. His constant turnover of coaches, including firing Musselman twice, further deepened the sense of instability within the organization.
The team’s performance only worsened, and the Cavaliers finished with one of the worst records in NBA history (15-67, 1982).
The Stepien Rule
Stepien’s tenure ended after just three years when he sold the team to George and Gordon Gund, who eventually bought the team back into the draft with the help of then-NBA Commissioner David Stern.
The franchise finally began its recovery from the chaos Stepien had caused. The “Ted Stepien Rule” was enacted to prevent such disastrous mismanagement from happening again, and his time as owner became a stark reminder of what happens when an owner’s impulsiveness and disregard for the future of the team go unchecked.
Stepien’s legacy remains a symbol of the dangers of bad ownership in the NBA. While he may have been able to run a lingerie show at his bar, his time in charge of the Cavaliers made it clear that his skills didn’t extend to running a basketball team.
The NBA learned valuable lessons from Stepien’s reign, and the league, as well as the Cavaliers, have been better off because of it.
Ted Stepien died in 2007 at the age of 82.
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