Background
In April 1972, after Nelson recorded "Mountain Dew", his final RCA single, the label requested that he renew his contract ahead of schedule, with the implication that RCA would not release any further recordings if he did not sign. Neil Rashen, who Nelson hired as his manager to negotiate with the label, got RCA to agree to end the contract upon repayment of US$1,400 that Nelson had been overpaid. At the same time, Nelson had moved to Austin, Texas, to take a short break. Austin's burgeoning hippie music scene at venues like Armadillo World Headquarters rejuvenated the singer. His popularity in Austin soared as he played his own brand of music that was a blend of country, folk, and jazz influences.
During a trip to Nashville, Tennessee, Nelson attended a party in Harlan Howard's house, where he sang the songs that he had written for the album Phases and Stages. Another guest was Atlantic Records vice-president Jerry Wexler, who previously had produced works for artists such as Ray Charles and Aretha Franklin. Wexler was interested in Nelson's music, so when Atlantic opened a country music division of their label, he offered Nelson a contract that gave him more creative control than his deal with RCA. When Nelson was released from his RCA contract, he signed with Atlantic for US$25,000 per year, becoming the label's first country artist.
Read more about this topic: Shotgun Willie
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