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Born Arnold Auerbach, the nickname "Red" emerged from his distinct ginger hair. As a young basketball enthusiast, Red was a standout player at the New York high school level and later excelled as a college player, where he captained Washington College. Despite his talent, his 5'9" stature and asthma limited his playing career to a coach’s role.
In 1940, Red began his professional journey as a gym teacher and coach, later joining the U.S. Navy team. His first taste of professional coaching came with the Washington Capitals in the then-nascent Basketball Association of America (BAA). Auerbach earned a reputation for his demanding practices, which paid off as the Capitals had a stellar season, achieving a league-best 49-11 record.