The Balrog Award, often referred to as the coveted Balrog Award, was created by Jonathan Bacon and first conceived in issue 10/11 of his Fantasy Crossroads fanzine in 1977 and actually announced in the final issue, where he also proposed the Smitty Awards for fantasy poetry. The awards were presented for the first time at Fool-Con II at the Johnson County Community College in Overland Park, Kansas on April 1, 1979. The awards were never taken particularly seriously, even by those who won. The final awards were presented in 1985. A Balrog Award for Novel was presented each of the years the award existed.
Anne McCaffrey first introduced her world of Pern in “Weyr Search,” the cover story of the October 1967 issue of Analog. Although the story had all the trappings of a faux Medieval fantasy tale, McCaffrey claimed from the very beginning that it was a science fiction story, a claim bolstered by its presence in Analog, a science fiction magazine. The story went on to win the Hugo Award and McCaffrey used it in her first Pern novel. By 1978, she had published three novels in the Dragonriders of Pern series and the first two novels in the related Harper Hall series, Dragonsong and Dragonsinger. She had also clearly demonstrated the science fictional underpinnings of her world.