In this clip, Stax Records owner Jim Stewart discusses one of the most infamous contract blunders in history. Shortly after the tragic death of Otis Redding, the record label was dealt another below.
During negotiations with Atlantic Records for a new distribution deal, Stax owner Jim Stewart realized he had signed all of the labels masters to Atlantic Records in a previous agreement that was only supposed to be a production and distribution deal.
As a result, Stax had no back catalog, was forced to sell itself to Gulf & Western for a paltry $4.3 million, and started rebuilding their roster of artists, as well as their publishing catalog.
Under the leadership of new label Al Bell, Stax started flooding the market with new releases from a variety of artists, including Isaac Hayes, The Mad Lads, The Dramatics and The Staple Singers.