In early 1977, Jerry Jarrett split from Nick Gulas whom he had been working with for many years. At this point, Jarrett owned 50% of the promotion after acquiring more and more of the company over the previous 5-6 years. The split was due to Nick wanting to push his son George Gulas as a top star. Unfortunately, George was not the star that his dad thought he could be and the business started suffering due to poor ticket sales when George was the main event attraction. According to an early 2000′s interview with Kayfabe Memories, Jarrett made the following comments about his split with Nick Gulas:
“I had a meeting with Gulas as a fifty percent partner. I explained that I could not put my investment at risk by bringing his son George to Memphis. Nick got his attorney, Cecil Bramstetter, on the phone. This is the attorney that drew up the partnership papers. At the time, I was so dumb, that I did not have my own attorney and simply allowed Nick’s attorney to draw the papers. Cecil informed me that the money I had paid for the fifty percent interests was only option payment and I owned nothing. I left the office with my head spinning and called another lawyer, who after looking at the contracts advised me that I had been screwed. I asked him what I could do and he tells me that he is sure he can get the contract dissolved in court but it would probably take a couple of years. I told him that in my opinion, the business would be gone in that time period. I told him that I wanted to start my own company regardless of how small it was.”
“I called key talent and advised them of my plans. Tojo and Fargo, who I just knew would stick with me, stayed with Gulas. Lawler and most of my men just asked what to do and said they were with me. I advised them to keep wrestling and I’d let them know when I was ready. Lawler and I went to see Mori Griner at Channel 5 in Memphis. At the time Channel 5 was in third place in the market and Channel 13, which had the wrestling show was number one. I told Mori that I could bring my wrestling to him and I could also bring Lance Russell and Dave Brown. I explained that not only could he get the number one television show in Memphis away from Channel 13, but he could get the program director, Russell, and the number one weather man, Brown. I promised him that he would become the number one station in Memphis within one year. Well, bless his heart, he believed in us and true to my word, Channel 5 became the top rated station in less than a year. This moved sealed my relationship with Channel 5 for years to come and also launched my promotion company.
After securing the television deal, I called Buddy Fuller and told him I was opening my own promotion. Buddy had never liked Nick, so he began helping me inform the NWA membership of the split. I took Buddy in as a partner mainly for political reasons and also because Roy, Buddy’s father, was responsible for me being in the business in the first place. We had to start our Memphis promotion at Ellis Auditorium, because the Mid-South [Coliseum] contract was in the name of Gulas-Welch. Channel 13 realized that they had lost their top rated TV show so rather than have a second rate program, they chose to cancel the contract. This left us the only promotion with a television show and the battle for Memphis was over. Because I had started Louisville, Lexington, and Evansville myself, there was never a real fight for those towns. So almost without a real fight, I had what had been known as the Memphis end of the promotion. Fargo and Tojo finally returned to the fold, but the relationship was never really the same.”
By 1978, Jarrett was getting the better of the rivalry with Gulas. It was during this period of time that Nick Gulas decided to bring in the Poffo family despite their reputation of being “outlaws” and anti-NWA. However, it wouldn’t be long before Angelo Poffo decided he would want to start his own promotion.