Sheila Johnson, founder & CEO of the Salamander Collection, shares the story behind her luxury hospitality company's brand and becoming the first African American woman to have ownership in three professional sports teams. She speaks on "The David Rubenstein Show: Peer-to-Peer Conversations". This interview was recorded January 4 in Washington DC.
Sheila Johnson is one of the nation's most successful black female entrepreneurs. She helped us start Black Entertainment television. Now she's an owner of a major hospitality company, Salamander, and is also an owner of three major league sports teams. She's also an accomplished musician. Had a chance to sit down with her recently to talk about her extraordinary career.
So right now, if I understand it correctly, you.
Have been a large developer of a company called BT which we'll talk about surely, and that was very successful. You now are an author with this book, was the best selling book. You also are a philanthropist. You've made a large gift to many places, but in Washington, d C.
In the mall. We'll talk about that in a moment.
You also are an accomplished musician, a violinist, and you've started symphonies in this city and in the Jordan, and you now are in the hospitality business.
So what do you do on the seventh day to you rest?
Well, more than anything I have to tell you, I am in the third act of my life, and this has been the happiest I've ever been, you know, Okay, so.
And so on the seventh day.
I just don't even rest you are also an owner.
I should have pointed out of three major sports teams' right, right?
And you're the first.
Woman, as I understand it, first woman to own three major.
Stake in three major sports teams. Is that right?
Yes? And we'll say African American.
You were approached by the owner then of the I guess, the Washington Wizards and the Washington Caps about maybe buying the Washington Mystics, which the female the women's basketball team.
And what did you say.
Well, first of all, it's a poland.
He did come to me and Susan O'Malley and they said, a Polson says, look, I want you to be the face of the Washington Mystics. And I said, what do you mean to be the face of? He says, I want you to buy this team. He his health was failing, and I I have to tell you, and a lot of women can understand this, we never get these opportunities. So that was the first thing that struck me. And I was flattered. I was really flattered. And I said, well, Abe, what are the financials on this? And he's handed him to me. He says, well, they're not making money, but I was still intrigued about team ownership. So then I called my lawyer, Sandy Ye, and I said, Sandy, I've just been offered a basketball team.
He goes, you don't wanna buy a basketball.
Team, and I said, it's Sandy. If you were offered this team, who would you do? And he was quiet, and I said, you just answered my question. And so I said, I'll be at your all. And I said, once you get Ted, leonsis on the phone and we talked to him, and I told Ted.
I asked Ted.
I said, I've just been offered the Washington Mystics, and I know that you want to buy the Wizards and you already own the Caps, and I said, look, I can make you an offer. I said, I would like to buy into Lincoln Holdings, which is what it was then, and I said I'd like to be the first woman and the first African American. I said, I do not think there's any other franchise in the country that can boasts that opportunity. And he says, well, let me go to the other partners and let's see what happens.
And that's what happened.
So I got it, and I bought into I paid the money.
So what happened was you were offered a money losing women's basketball team, and you said, I don't want to just be the face of a money losing basketball team.
I want to be in the other sports as well. Is that right?
Well, yeah, you know you got to be smart about this.
Okay, a very small You know, there's three teams that can share losses and profits.
Now you're an owner of the Washington Caps, the Washington Wizards, the Washington Mystics, right, any more sports teams?
Well, let's see.
Okay, Now, I don't know where you are now in life as a place, and many people would like to be Did you start out where the wealthy father and mother?
And they weren't wealthy, they were middle class.
Middle class. So you might describe what happened in your family growing up. Because you begin your book with a relatively sad I would say, situation, you might describe what happened in that situation.
Yeah, it's a case.
And now we're going to go all the way back to the fifties early sixties, and this is a time when women had very little leverage and control over their own lives. My father was one of eight African American neurosurgeons in the country, and that put us in a social status up here. He then decided one night he was just leaving and he just left us cold. And so my mother suddenly went from here to here in society, in the eyes of society.
Her friends left her. It was going on.
She literally had a nervous breakdown and I was coming in. I was working at JC Penny, and I came in and we found her on the floor in the kitchen and convulsions. And that was a time, at sixteen years old, that I suddenly had to grow up. I had to take care of that family.
You were interested in music, right, and you were an accomplished violinist.
What had happened?
Despite all my father's issues, he did he was a great pianist. Okay, I don't know where it came from, but he could sit down and play anything. And there was always music in our household. My mother even played the piano. And when we moved to Mayward, Illinois, District eighty nine said that it was mandatory that would pick up a music instrument. And that's when I picked up the violin and I just fell in love with this instrument.
That instrument was the foundation of my life.
It was my sanctuary and I became really good at it.
So you graduated from high school and you went to college.
Where University of Illinois and Champagne and.
Were you playing music on the side.
No.
I was in a very middle class community. I didn't know about SAT preps. I didn't know about a lot of things in preparation for colleges that the upper class white people had. So the problem was is I went and they said you got to go take an ssat test, and I'm like, what's an essat test?
I went once Saturday and took it.
I had the lowest SAT scores you can imagine. And when I told my music teacher it high school, I said, I don't understand these scores. She says, oh my god, these are We're really bad. And she said, but don't you worry. She says, I want you to go down an audition at the University of Illinois and Champagne, which I did, and I played in front of Paul Rowland, who was also instrumental in bringing Suzuki, along with John Kendall, into the country, and he says, I'm taking you into this university.
I got full scholarship. And it was because of my musical skills that I got in there. All right.
So you went there and you majored in violin.
I majored in music in performance and music education, okay.
And so you were doing well there, and you expected to be a professional musician.
I was, yes, And I played in the Chicago Civic Symphony and under John Martineau in the Chicago Symphony, and then from there moved to the East Coast, and that's where I settled in this area and started teaching at Sidwell Friends and put together one of the most magnificent middle school orchestras.
That orchestra grew.
I left Sidwell in seventy two, took that orchestra and bought a house on Brandywine Street, where that orchestra grew to one hundred and ten students.
And that orchestra was so good.
We played at the old Post Office Pavilion which is now that was the Trump Hotel, now the Waldorf and Queen nor that whole delegation came in and heard that orchestra and they went, oh my god. We were invited to Amman, Jordan to play at the largest cultural festival in the Middle East called Drash and from that point on we got invited back six or seven times to perform over there, and I received the highest honor in education from King Hussein.
Okay, yeah, you still play the violin.
I still had my violin. I picked up the cello during covid Yo Yoma give you lessons or no.
I wish he would.
One of the reasons that.
You became financially successful was a company you helped to build.
Yes, all Black Entertainment Television.
That's right.
When did you start that company?
We started, I can tell you we went on the air January twenty fifth, nineteen seventy nine. Before that was just getting everything in place. I ended up having to sell my violin, my precious violin that my parents mortgaged the house for to pay the rent on the offices. And it was the old American Trial Lawyers Building, which is now a hotel in Georgetown. But it was just these sacrifices that you have to make in life.
So you started this with somebody who met when you were in college.
Yeah, So.
What was the concept behind black Entertainment television?
What were you trying to do? Why was there need for bet?
What you have to understand BT.
Was born during the birth of all cable you know, that was saying in.
Bloomberg, you name them.
Everybody started these cable networks, but what they weren't addressing was the voice of the African American community. And so when Bob was working with the National Cable Television Association, he had to take a senior citizen up to the hill to try to get government approval and some money to start a senior citizen channel. They turned him down. He threw the proposal in the trash. Bob pulled it out, we brought it home. He says, you need to look at this. I'm crossing out senior.
I write in black, you know. And I said, you know.
And we made some tweaks, and I said, but how are we going to get money for this? And then we realized there's John Alone in Denver, who owned all the cable stations across the country. Took it to him. He says, this is the best idea since slice bread. He immediately wrote a check for five hundred thousand dollars to get us started. But you know, in the television business it goes like that.
It was like that in every business. But okay, I know.
But anyway, he really was our guardian angel all the way up to the sale of Viacom.
Okay, we had to pay him back.
We paid him back every penny that he invested into beet BT.
What you and your then husband ran it for a roughly twenty years, was it? And then you decided to sell it to buy a coom for a very nice price.
At the time, Well, I didn't know it was going to go for that.
I just remember being in Times Square and I saw the tick or take thing going around and said BT was told for three billion dollars.
And I'm like, oh, this is perfect. Let me call my lawyer so I can.
So you sold it, you split up the proceeds, Yes, and later you decided that you would try to spend some time in a place called Middleburg, where you had bought a house. Middleburg was not the most welcoming place for African Americans.
Was it. No, not at all.
Where'd the idea come from the build a resort hotel there?
Well, read the book, But anyway, it was it was a town that I fell in love with. First of all, I had to buy a mark, I mean a gun shop that had a Confederate flag in the window.
I wanted to get rid of that, so I bought the building right Sandy.
There were some trinks I had to make there to make it livable, and I built a performing arts center for the Hills School. So there were just some things that needed you know, you got to build a foundation there.
And so then a broker came to me and said.
Look, Pamela Harriman has passed away, as you know, and this was the last of the estate. So there's three hundred and forty acres there, and they said, would you be interested.
I knew the.
Town was financially bankrupt, and I said, I knew if I could do something as a businesswoman, I needed to put an economic engine in that place and an anchor. So when I went up on the land, I knew immediately what I needed to do, and that was to build that I was very naive about it.
I remember having a vision of what I wanted to.
Do, but I also had a party up there to introduce my idea and my vision. The next morning I went was on my way to Dulles Airport and there were signs on both sides of the roads that said don't be eating Middleburg, and I called my lawyer who was sitting here, and I said, you know what, We've got a problem. And that went on for the next ten years. It was the fight of my life. And I will tell you with everything that I went through, it's all with all in the newspapers, everything. But when the final vote went down, I won by one vote.
One vote was the right to build the hotel. You wanted, that's right, so you started building it. But then what happened.
There was accession hit.
I got a call from the bank and they said, you better them offball this for a while and we'll give you the green light when its started again.
But the other thing I want you all to know is a woman.
Even with all of my money that I had at the time, I could not get a bank loan to build it. I had to use my own money to build that resort because.
I had.
I don't know, I was a woman, and I just could not get the bank loan.
So ultimately, though, you just you went ahead.
The reception kind of went away, and you decided to build it with your mobile money.
Then the bank called and said you can proceed now, okay, But I still had to use all my own money to finish that off.
Okay, so you built it. How many rooms was it initially?
It was?
It up?
Well, we started with sixty eight and then it grew and it grew and it grew. So now that was the one one hundred and sixty eight and that's where the town put the plug on me. That that's what I do. However, I was able to get out of that to build forty nine homes which are going up now. And I was able to also broke a deal where the town hall. I was able to lease a piece of the property to the town. They have a town hall, and I have got the police department on my property.
So now, so you decided to build this hotel in Middelburg, And why did you call it Salamander?
Oh, this is a great story. So when I moved to that area and I decided to buy.
The farm where I'm living now, there was a guy by the name of Bill Ildasaker who owned the property. I kind of knew the name because his brother was teaching at Princeton or something like that, but he had never really lived at the farm, and he had a name for the farm called Cottswald or something like that, which I did not want, and so I said who had the farm before?
And they said it was Bruce Sunlan.
I contacted Bruce Sunlan and asked him what was the name of his farm before, and he said it was Salamander, and I said, well, where did that name come from? Bruce Sunlan was a fighter pilot that was shot down over Nazi occupied Belgium.
His entire unit was captured.
He was able to get out across.
Europe and ended up an.
Ally territory of France. He fought for briefly for the French resistance. The US then came to him and said, look, we have got to go in and we have to rescue the rest of your unit out of the pow camp. This is a true story, the story of Hogan's heroes.
That is Bruce.
Sundlon, that was where the TV show came from. And he says, well, what does salamander mean? And they said, mythically, it's the only animal that could walk through fire and still come out alive, which I loved, but you know, realistically, if you cut off its limbs, they regenerate. And it just hit at that time a nerve with me and I said, I need that brand and I'm going to brand the Salamander.
So Salamander. Was your original idea was to build a luxury resort there. Why did you decide to build more hotels or by other ones? Was that your original idea or just to build one or miltmore.
No, it's just.
That after the success of building the resort in Middleburgh and it just took off. You know, they said, if you build it, they'll come. And then after I hired the most exceptional team I could have put together and they're still with me. And we were so successful with the resort out there, we decided to expand.
Now that you're one of.
The I think wealthiest African American women in the United States, I think that's fair to say you don't suffer any gender or racial discrimination.
Is that right?
I'll come out it continues to go on. It's something that I continue to address. I normally address it through my company by making sure that I hire diverse minds, people.
Of color, women of color, men of color.
And when Kwame Alawache lost his restaurant at the Intercontinental down of the war, and it was written about in the Washington Post, I called him immediately and I said, I want you to come to Salamander. We have been together ever since, and we decided to put this family reunion together to bring chefs of color, both men and women, and so may as from all across the country. We have forty one chefs to come and to really discuss the issues that are going on in this country. We've got to address these issues. And as you know, I put fifty kids through the Kennedy School at Harvard, and these are young people from underserved communities that I paid for the whole education, and they are now so successful.
But this is something that we have to do.
Okay, let's talk about another sport that you have been involved with.
Yes, your daughter, as you.
Mentioned, was a champion equestrian, which is a very inexpensive sport.
Right, if anyone wants to buy some horses, I've got a few there.
One time, your daughter says to you, why don't you get on a horse and ride.
What happened then, Well, we were out riding one day and then she was saying, mommy got to learn to jump over the logs and everything. So we went back into the indoor arena and she was showing me how to do it, and I don't know whether the horse got stung by a bee or what happened. But I got bucked off and she kept yelling let go of the reins, which I didn't do, and the horse stepped on this side of my body and I could hear crunch all in. My ribs on front and back are broken, and I was taken. I was in the hospital for a couple of weeks. Missed my heart by about an inch.
So you're putting back on a horse since then?
Never, I would never do it.
I just laid there on the ground and the horse kept nudging me, and I just said, God, if you just let me live, I will never get back on another horse.
Then.
Well, but you have been helping horses in one sense. There's a stable on the National Mall, right, That is the stable that the park I guess park rangers usual the US Park US Park Police hues for the horses that they have up and down the mall. So who came to you and said, guess what, we need new stables and you should put up the money.
No, As you know, I joined the board of the trust for the National Mall and they were giving me the low down on you and everything that you've put into our wonderful front yard, and all of a sudden I heard horses in the background, and I said, what's over there? And they said, well's for the US park Police horses, aren't I said, well, where are they? I'd like to take a look at and they said, you really don't need to.
Look at that.
And I know Catherine Townsend's here and she's going to cut my throat when I say this, but I did go over there and I said, you know, this is what I want to do. We had the park lea in trailers or whatever you call them. It was terrible, and the horses were really in unsanitary conditions as far as I was concerned of what I'm used to. Catherine, don't get mad at me. But anyway, I just said, this is going to be my project and this is what I want to do. So now, if you go on to the mall right, I don't know how many hundreds of feet down from the Lincoln Monument, you see the most incredible stables for these horses, and they're out there. One of my horses, Chief is right there.
Okay.
So it was my job.
To raise the I guess was thirty million dollars to get that thing up, and we did it and it is just amazing.
Let me ask you what's next for Shielda Johnson. Are you going to run for office? You're going to become a cabinet officer and ambassador anything.
I don't know.
I'm just gonna continue to focus on my company and try to help encourage so many women and especially young women out there, to really find themselves.
I want to read something to you, Okay, to the audience.
Sixteen and a half years ago, it's really now. Seventeen had passed since my divorce from Bob, exactly half the time we had been together.
I was finally free.
If I could go back in time and talk to my younger self, I would tell her this, Trust your instincts. Get to know who you are before you give yourself to someone else. Believe that you can find happiness and that you deserve it. You're going to be Okay.
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