October 1973: Gary Gygax and Donald Kaye form the Tactical Studies Rules (TSR) partnership in Lake Geneva, Wisconsin. Kaye invests $1,000.
January 1974: TSR publishes Dungeons & Dragons as a wargame, selling around 1,000 copies in its first year.
January 31, 1975: Donald Kaye dies. Brian Blume joins the partnership, investing $2,000. Donna Kaye, Donald's widow, becomes an equal partner.
March 6, 1975: Gygax assures game designer David Megarry that TSR will always be run by wargamers and not outside investors.
July 1975: TSR Hobbies incorporates in Wisconsin, aiming to handle mail-order sales and a potential retail store.
August 1, 1975: Gygax and Brian Blume sign a stock agreement for TSR Hobbies, awarding Gygax 150 shares and Blume 100.
September 1, 1975: Melvin Blume, Brian's father, invests $20,000 in TSR Hobbies for 200 shares. Brian simultaneously buys 140 shares for $14,000, giving the Blume family a controlling interest.
September 26, 1975: TSR Hobbies acquires the assets of the Tactical Studies Rules partnership.
Late 1975: TSR Hobbies hires employees, including family members of both Gygax and Blume. Employees are given the opportunity to purchase small amounts of equity.
July 1976: Gygax and Brian Blume receive options to purchase up to 700 additional shares each at $100 per share.
Late 1976: Kevin Blume joins TSR to help with finances and hiring.
1976-1979: Gygax gradually increases his stake to around a third of the company. Brian Blume holds slightly more, while Melvin Blume's stake decreases to under 10%. Gygax remains President throughout this period.
1977-1979: The Advanced Dungeons & Dragons product line is released in stages, significantly boosting TSR's sales and profile.
May 1979: William Niebling joins TSR as Vice President and receives an option to purchase 500 shares at $125 each.
July 1979: The James Dallas Egbert III disappearance brings Dungeons & Dragons into the national spotlight, marking the beginning of the D&D fad.
November 4, 1980: Kevin Blume joins the TSR Board of Directors.
September 1981: Melvin Blume transfers his 200 shares to Kevin, making him the third-largest shareholder.
1981-1982: TSR experiences a boom period, with sales skyrocketing. They acquire Simulation Publications, Inc. (SPI) and Amazing Stories magazine.
January 1982: TSR projects sales of $45 million for the year. The board sets a par value for TSR stock at $3,000 per share.
July 1982: TSR Hobbies reorganizes into four separate companies: TSR Inc., TSR Entertainment Corporation, TSR Ventures, and TSR Worldwide Ltd. Kevin Blume becomes President of TSR, Inc., while Gygax heads the Entertainment Corporation.
1982: TSR's growth slows significantly, falling short of projections. The Dungeons & Dragons fad begins to wane.
June 1983: TSR reports $26.7 million in revenue, far below its $75 million projection. They post their first loss due to the write-off of the unprofitable Greenfield Needlewomen acquisition.
June 24, 1983: TSR implements layoffs to cut costs and secure a $4 million loan from the American National Bank.
October 1984: Gygax reveals that there is still no studio attached to a potential Dungeons & Dragons movie.
Early 1985: Gygax secures interest from the Forman group (FSRB) to invest in TSR. The board abolishes the preemptive right for existing shareholders to purchase new stock pro rata.
March 18, 1985: Gygax exercises his option for 700 shares, giving him and his son Ernie a controlling interest in TSR. The Forman deal is abandoned.
March 29, 1985: Gygax is appointed President and CEO of TSR, Inc.
April 1, 1985: Lorraine Williams joins TSR as Vice President, with her employment contingent on significant stock purchases.
April 9, 1985: The American National Bank blocks TSR's attempt to buy back the Blumes' shares, citing the company's poor financial health.
April 16, 1985: During a board meeting recess, Gygax and the Blumes have a private discussion about the sale of the Blumes’ shares. The exact nature of this discussion is disputed.
May 6, 1985: Brian and Kevin Blume sign a severance agreement with TSR.
October 8, 1985: The Blumes and Lorraine Williams agree to a deal where Williams will purchase all of the Blumes' TSR stock for $350 per share, totaling $591,500.
October 22, 1985: At a board meeting, the Blumes exercise their option for 700 shares using funds provided by Williams. Williams becomes the largest shareholder with 1,690 shares. The board forces Gygax to resign and appoints Williams as President and CEO.
November 5, 1985: Gygax attempts to buy back a portion of the Blumes’ shares but is unsuccessful as the shares are already held in escrow.
1986: Gygax engages in a legal battle to regain control of TSR but loses the case.
October 1986: Gygax resigns from all positions at TSR.
Cast of Characters:
Gary Gygax: Co-creator of Dungeons & Dragons, co-founder of TSR, and President of TSR Hobbies. Known for his design talent and leadership in the wargaming community. Lost control of TSR in 1985 after a series of financial missteps and a power struggle with the Blume family.
Donald Kaye: Co-founder of TSR who provided the initial capital for the company. Died in 1975.
Brian Blume: Co-founder of TSR who joined the partnership after Kaye's death. Along with his brother Kevin and father Melvin, held a significant share of TSR stock. Served as Vice President and later President of TSR Ventures.
Kevin Blume: Joined TSR in 1976 to handle finances and later became President of TSR, Inc. Played a key role in the company's financial decisions and the events leading to Gygax's ousting.
Melvin Blume: Brian and Kevin's father, who made a substantial early investment in TSR. Transferred his shares to Kevin in 1981.
Lorraine Williams: Joined TSR in 1985 as Vice President and quickly rose to become President and CEO after buying the Blumes' shares. Came from a wealthy family and leveraged her financial resources to gain control of the company.
William Niebling: Joined TSR in 1979 as Vice President. Was opposed to some of the Blumes' financial dealings.
Willard Martens: TSR board secretary and a Vice President of finance. Remained neutral during the power struggle between Gygax and the Blumes.
James Huber and Wesley Sommers: Independent directors appointed to TSR's board in 1984. Played a crucial role in the events that led to Gygax's resignation and Williams's appointment as CEO.
Podcast about it:
https://vocaroo.com/1cksKuDpgVLI