Walsh ended his second term as the 49ers' general manager on Wednesday, handing the job to top assistant Terry Donahue in a long-anticipated transition.
After coaching San Francisco to three Super Bowl titles in the 1980s and building a roster that won two more titles after he left in 1989, Walsh returned to the 49ers in 1999 to rebuild a once-proud franchise ravaged by age and salary cap problems.
With the 49ers now stocked with a young, talented roster and a revitalised front office, Walsh considered his work completed. After a vacation in Hawaii, he will become an adviser in an organisation synonymous with his innovations and leadership.
"I think I'm leaving the operations here in much better shape than I found them, and I feel like I've done that twice," Walsh said. "Now it's time to let Terry have his turn. I've been able to handle some tough jobs, so we'll see how Terry does."
Donahue, who has been training for his new job since Walsh brought him to San Francisco two years ago, agreed to a four-year contract. Walsh has a three-year deal as a vice-president and consultant for the organisation.
"We will have Bill's voice in our decision-making, hopefully for many, many years," said Donahue, who coached at UCLA for 20 seasons before a brief broadcasting career. "Any time you follow an immensely successful person as I'm doing, the standard is raised. The bar is set very high here."
Walsh spent 10 seasons as the 49ers' coach and general manager from 1979-88, building them into a dynasty still unmatched in NFL history.
As a GM, Walsh acquired most of the key players in the 49ers' best years, including Joe Montana, Jerry Rice, Ronnie Lott and Steve Young. As a coach, he shaped them into a team that won five Super Bowls in 14 seasons -- the last two after George Seifert took over as coach.
Walsh, 69, was a pioneer of the West Coast offence, which is used, with minor variations, by approximately two-thirds of the teams in the NFL today. He was a mentor to dozens of current and former head coaches who once worked under him, including Mike Holmgren, Mike Shanahan, Dennis Green and Brian Billick.
Chuck Noll, Joe Gibbs and Walsh are the only coaches to win three or more Super Bowls.
After stints in broadcasting and a second tenure as head coach at Stanford, Walsh returned in January 1999 at the behest of former owner Eddie DeBartolo. Walsh went to work excavating the 49ers from the cap problems they incurred under Carmen Policy's leadership.
"It's not too strong to say Bill Walsh saved this organisation, because he played a large part in doing that," 49ers coach Steve Mariucci said. "We needed somebody to get us through a really rough time, and we're thankful he was willing to do it."
In addition to making massive roster cuts and salary reductions, Walsh said his most difficult and important task in the last two years was negotiating a sensitive end to the San Francisco careers of Young and Rice, two of the 49ers' greatest stars.
Young, the 49ers' starting quarterback for parts of nine seasons, retired before last season due to a series of concussions. Rice, who holds every significant NFL receiving record, will be released by the 49ers in June to ease their cap problems.
"I don't know how anyone but me could have presided over that change with these two men," Walsh said. "It was such a sensitive issue. They've meant so much to this organisation and this community that it was important that I was the one to point them in the right direction, because they know I know what they mean."
Donahue praised his two-year apprenticeship under Walsh, his one-time coaching opponent in the Pac-10, and vice-president of football operations John McVay, who also returned to the 49ers with Walsh in 1999 and will move into a more advisory capacity.
"You couldn't learn this position under two men who are more respected and more talented," Donahue said. "I'm ready to put all of their lessons to use."
By Greg Beacham
