George Lucas and Steven Spielberg thought this film would be the American Graffiti (1973) of surfing films - that it was destined to be such a hit that they famously traded profit points on their next two films, Star Wars: Episode IV - A New Hope (1977) and Close Encounters of the Third Kind (1977) with director John Milius. This trade would earn Milius millions of dollars while his own film would flop at the box office.
The character of Matt Johnson is based on real-life surfer Lance Carson, who struggled with alcoholism throughout the 1960s and 1970s.
The role of the "Enforcer" was loosely based on longtime Malibu icon and waterman Ray Kunze, who looked out for Screenwriters John Milius and Dennis Aaberg in the late 1950s.
The character of Jack Barlow was loosely based on surfer Kemp Aaberg. Moreover, Kemp's younger brother Dennis Aaberg co-wrote the script for this film.
Initially, the Bear brand surfboards were just intended to be props for this film. With the worldwide release of the picture, it generated demand for actual boards with the Bear logo. This morphed their manufacture into a real company that is still in business in 2020.