Proceeds from sales of the Towel have raised over US$2 million for a Pennsylvania agency, Allegheny Valley School, which cares for people with mental retardation and physical disabilities. The Terrible Towel is credited with being the first "rally towel" and its success has given rise to similar products promoting other teams. Numerous versions have been produced; all are black and gold in color with the words "Myron Cope's Official The Terrible Towel" printed on the front.

Two weeks prior to the Steelers' first playoff game of the 1975 season, the team's flagship radio station WTAE's Vice President and General Manager, Ted J. Atkins, and President of Sales, Larry Garrett, explained that they needed Cope's assistance in inventing a "gimmick" in order to attract sponsors to his daily commentaries and talk show. Initially, Cope did not want to participate, saying "I am not a gimmick guy, never have been a gimmick guy." However, after Garrett's suggestion that a successful gimmick would be good leverage for a raise in Cope's upcoming contract renewal, Cope replied, "I'm a gimmick guy."

The three men, along with other radio station advertising personnel, began brainstorming ideas. One idea, a black mask including coach Chuck Noll's motto "Whatever it takes", was deemed too expensive. Cope said the gimmick should be something "lightweight and portable and already owned by just about every fan." Garrett suggested using towels. Cope agreed, suggesting the words "The Terrible Towel" be printed on the front. It was agreed that the towels would be gold or yellow, with the writing in black—the colors of the Steelers. Franklin C. Snyder, who was head of WTAE's radio and television stations, held the final approval of the idea. He approved the idea on the stipulation that black towels would also be allowed, in order to avoid accusations of racism from the FCC; Cope and Garrett agreed.

In the weeks leading up to the game, Cope advertised the idea of the towel to fans on the radio and evening television news, using the phrase "The Terrible Towel is poised to strike!" However, Atkins grew nervous that fans would think the towel was a jinx if the Steelers lost the game. Cope agreed to poll players on their view of the towel. Linebacker Jack Ham told Cope, "I think your idea stinks"; Ernie "Fats" Holmes was also against the idea. Also against the idea of the Towel was Andy Russell, who mirrored Cope's original thoughts, "We're not a gimmick team. We've never been a gimmick team." Cope simply replied, "Russell, you're sick." Growing nervous about the negative feedback, Cope, who had already advertised the towel on the news multiple times, polled the rest of the players with a "banana-republic vote".

Myron Cope Inventor of the Terrible Towel
In 2005, Cope retired after 35 years as the Steelers radio announcer—the longest tenure of any broadcaster with a single team in NFL history. Cope was honored by the Steelers with the release of a limited special edition Towel, featuring his name and catch phrases. Cope was made an honorary co-captain for the Steelers for a Monday night game against the Baltimore Ravens. Cope led the fans in a towel wave at half time; the Towel that Cope used is now in the Pro Football Hall of Fame.

In response to how he would like to be remembered, Cope responded, "When I kick the bucket, there'll be a little story that'll say, 'Creator of Towel Dead'". On February 27, 2008, Cope died of respiratory failure in Pittsburgh. The following day, the Associated Press obituary concerning Cope's death was entitled "Former Steelers broadcaster, Terrible Towel creator Cope dies". Upon Cope's death, over 350 fans gathered in downtown Pittsburgh in snowy weather for a tribute to the inventor. The ceremony concluded with one minute of silent Towel waving. Days later, cast member Seth Meyers waved a Terrible Towel on Saturday Night Live, in tribute to Cope.