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 Reshen, 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. The recording sessions took place in February 1973, Wexler provided Nelson and his band with a studio in
New York City, where the recordings were produced by
Arif Mardin. ==Release and reception==