On This Day

Walter O'Malley

American businessman (1903–1979)

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Walter Francis O'Malley (October 9, 1903 – August 9, 1979) was an American sports executive who owned the Brooklyn / Los Angeles Dodgers team in Major League Baseball from 1950 to 1979. In 1958, as owner of the Dodgers, he brought major league baseball to the West Coast, moving the Dodgers from Brooklyn to Los Angeles despite the Dodgers being the second most profitable team in baseball from 1946 to 1956, and coordinating the move of the New York Giants to San Francisco at a time when there were no teams west of Kansas City, Missouri. In 2008, O'Malley was elected to the National Baseball Hall of Fame for his contributions to and influence on the game of baseball.

O'Malley's father, Edwin Joseph O'Malley, was politically connected. Walter, a University of Pennsylvania salutatorian, went on to obtain a Bachelor of Laws (LL.B.), and he used the combination of his family connections, his personal contacts, and both his educational and vocational skills to rise to prominence. First, he became an entrepreneur involved in public works contracting, and then he became an executive with the Dodgers. He progressed from being a team lawyer to being both the Dodgers' owner and president, and he eventually made the business decision to relocate the Dodgers franchise. Although he moved the franchise, O'Malley is known as a businessman whose major philosophy was stability through loyalty to and from his employees.

In 1970, O'Malley ceded the team presidency to his son, Peter. He would become the first chairman of the Dodgers, a title established for him, and remain so until his death in 1979. During the 1975 season, the Dodgers' inability to negotiate a contract with Andy Messersmith led to the Seitz decision, which limited the baseball reserve clause and paved the way for modern free agency. He bequeathed the team to his children Peter O'Malley and Terry O'Malley Seidler upon his death in 1979.

Walter O'Malley was born on October 9, 1903, in The Bronx, New York City. He was the only child of Edwin Joseph O'Malley (1881–1953), who worked as a cotton goods salesman in the Bronx in 1903. Edwin O'Malley later became the Commissioner of Public Markets for New York City. Walter's mother was Alma Feltner (1882–1940). Walter was a third-generation Irish-American. His great grandfather, John O'Malley, was born in County Mayo, Ireland. O'Malley grew up as a Bronx-born New York Giants fan. He frequently attended Giants games at the Polo Grounds with his uncle Clarence. O'Malley was a Boy Scout who rose to the rank of Star Scout.

O'Malley attended Jamaica High School in Queens from 1918 to 1920 and then the Culver Academy (the eventual high school alma mater of future New York Yankees owner George Steinbrenner) in Indiana. He managed both the baseball and tennis teams, served on the executive staff of the student newspaper, was a member of the Hospital Visitation Committee as well as the debate team, Bible Discipline Committee and the YMCA. At Culver, his baseball career was ended with a baseball that hit him on the nose.

Later, he attended the University of Pennsylvania and graduated in 1926 as the senior class Salutatorian. At Penn, he was initiated into Theta Delta Chi, and he also served as president of the Phi Deuteron Charge. Upon his graduation from the University of Pennsylvania School of Engineering and Applied Science his father gave him a cabin cruiser that slept eight. He was also Junior and Senior class president. O'Malley originally enrolled at Columbia University in New York City for law school, but after his family lost their money in the Wall Street Crash of 1929, he switched from Columbia Law School to night school at Fordham University. Edwin O'Malley's dry goods business was failing and Walter had to help run the business.

After he completed his law degree in 1930 at Fordham Law, he worked as an assistant engineer for the New York City Subway. After earning his law degree he needed to obtain a clerkship, but it was during the depression and no one could afford to hire him. He allowed a struggling lawyer to use space in his office and paid for his own clerkship. After working for the Subway, he worked for Thomas F. Riley, who owned the Riley Drilling Company, and they formed the partnership of Riley and O'Malley. With the help of Edwin O'Malley's political connections, Walter's company received contracts from the New York Telephone Company and the New York City Board of Education to perform geological surveys. Subsequently, Walter started the Walter F. O'Malley Engineering Company and published the Subcontractors Register with his uncle, Joseph O'Malley (1893–1985).

Walter eventually concentrated on the field of law, starting with work on wills and deeds. By 1933, he was senior partner in a 20-man Midtown Manhattan law firm. He developed the business habits of smoking cigars and of answering questions only after taking two puffs. During the Great Depression, O'Malley represented bankrupt companies and enriched himself, while building his thriving law practice. He invested wisely in firms such as the Long Island Rail Road, Brooklyn Borough Gas Company, the New York Subways Advertising Company, a building materials firm, a beer firm and some hotels. His success begot both influence and attention. The Brooklyn Democratic Machine powers such as judge Henry Ughetta and Brooklyn Trust Company president George Vincent McLaughlin were among those who noticed the rising O'Malley.

McLaughlin had been New York City Police Commissioner in 1926, knew O'Malley's father, and had attended Philadelphia Athletics games with O'Malley when O'Malley was still at the University of Pennsylvania. McLaughlin hired O'Malley to administer mortgage foreclosures against failing businesses for the Trust Company. O'Malley earned McLaughlin's confidence by acting in numerous capacities including bodyguard, valet, chauffeur, adopted son, confidant and right-hand man. The trust company owned the estate of Charles Ebbets, who had died in 1925 and owned half of the Brooklyn Dodgers. It was 1933 when Walter again met George V. McLaughlin, president of the Brooklyn Trust Company. O'Malley was chosen to protect the company's financial interests in the Brooklyn Dodgers in 1933. O'Malley also served as designated driver for the hard drinking McLaughlin. It was through McLaughlin that Walter was brought into the financial arrangements for Ebbets Field in 1940. In 1942, when Larry MacPhail resigned as general manager to serve in the United States Army as a lieutenant colonel, O'Malley was appointed the attorney for the Dodgers, and he obtained a minority ownership interest on November 1, 1944. He purchased 25% as did Branch Rickey and John L. Smith (president of Pfizer Chemical), while the heirs of Stephen McKeever retained the final quarter. In 1943, he replaced Wendell Willkie as chief legal counsel. Branch Rickey, who had built the St. Louis Cardinals into champions, replaced MacPhail, and O'Malley began to accumulate stock in the Dodgers.

Rickey was a teetotaler, while O'Malley enjoyed alcoholic beverages and tobacco. As O'Malley became more involved in affairs, he became critical of Rickey, the highest-paid individual in baseball, counting salary, attendance bonuses, and player contract sales commissions. O'Malley and Rickey had very different backgrounds and philosophies. It was O'Malley who put pressure on Rickey to fire manager Leo Durocher, who O'Malley felt was a drain on attendance. In board of directors meetings, O'Malley also opposed Rickey's extravagances. When he was with his political friends, he made fun of Rickey at every chance. Daily News columnist Jimmy Powers would deride Rickey for selling off players and for general miserliness. When Rickey asked O'Malley, the team lawyer, if he should sue, O'Malley said no. Powers' campaign became so public that after the 1946 season Rickey gave each player a new Studebaker, which gave O'Malley, a Dodgers shareholder, reason to speak ill of Rickey in the press. It got to the point where everything Rickey did was something O'Malley derided: O'Malley thought Rickey's construction of the state of the art Vero Beach spring training facility, known as Dodgertown, was extravagant; he thought Rickey's investment in the Brooklyn Dodgers of the All-America Football Conference was questionable; he fought Rickey on the team's beer sponsor; and he demanded that players return their 1947 World Series rings before receiving the new ones Rickey ordered. As team lawyer, O'Malley had a role in breaking the racial barrier as well. In particular, he had a significant role in Rickey's top-secret search for suitable ballplayers to break the color barrier and then later he had a role in assessing the ongoing legal risks to the franchise. Other accounts, however, suggest that he played a lesser role in Robinson's signing.

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