Segelke is the third of four children. He is German and Danish descent. He won the national Punt, Pass, and Kick competition at the 1969 Pro Bowl.
Segelke played baseball at El Camino High School in South San Francisco, California. He suffered tendonitis in his pitching arm as a junior but, in his first start as a senior, with a dozen professional scouts present, Segelke threw a no-hitter against San Mateo High School.
Segelke received a scholarship offer to play college baseball at Arizona but was drafted with the seventh pick of the 1976 Major League Baseball Draft by the Chicago Cubs on the recommendation of scout Gene Handley. Segelke held out for a larger signing bonus and ultimately was given a $52,500 bonus (equivalent to $250,000 in 2021), then the largest bonus ever given by the Cubs.

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