The franchise was founded in early 1996 by a group of investors led by Philadelphia native Paul Lipschutz.
[2] In their inaugural season, the team won the Northern Division title with a 22–7 record and reached the league finals, after defeating Connecticut Skyhawks in the quarterfinals and the Tampa Bay Windjammers in the semifinals; the Seagulls lost to the Florida Sharks in the USBL finals, 115–118.
[5] The team ended the regular season with the best record in the league (20–6, .769), won their second division title in a row, and again reached the USBL finals, defeating the Philadelphia Power in the quarterfinals and the Raleigh Cougars in the semifinals.
The team could count on the league's top rebounder, Brent Scott, and the season assists leader Mark Baker: Scott and Baker were named Postseason co-MVPs, while coach Kevin Mackey received the Coach of the Year award.
For the second season in a row, the Seagulls beat the Long Island Surf in the league finals (100–96) and won the USBL title.