The Chicago Bulls were granted an NBA franchise on January 16, 1966, making them the third NBA team in Chicago`s history, following the Chicago Stags (1946–1950) and the Chicago Packers/Zephyrs (1961–1963). The franchise was founded by Dick Klein, the only owner in Bulls history to have played professional basketball, having previously played for the Chicago American Gears. Klein served as the team`s general manager and president during its formative years.

After the 1966 NBA Expansion Draft, the Bulls (coached by Chicagoan and former NBA All-Star Johnny ``Red`` Kerr) were allowed to acquire players from established teams. In their inaugural 1966–67 season, the Bulls played their first game on October 15, securing an upset victory over the St. Louis Hawks. They finished the season with a 33–48 record, the best by any expansion team in NBA history at the time, and became the first (and only) expansion team to qualify for the playoffs. Guard Guy Rodgers, who led the league in assists, and forward Jerry Sloan were named All-Stars, and Kerr earned Coach of the Year honors.

Despite continued success through the early 1970s, the team faced challenges in the late decade. After four seasons of 50 or more wins, Williams left for Philadelphia, and Motta took on both the coaching and general manager roles. The Bulls` performance declined significantly, culminating in a 24–58 season in 1975–76. As a result, Motta was fired and replaced by Ed Badger.