While Toby Keith never owned Big Machine Records outright, he played a key role in its early existence and reaped significant financial benefits through a savvy investment.
In 1999, clashing with executives at Mercury Records, Keith bought back the rights to his album “How Do You Like Me Now?” and sold it to DreamWorks for a life-changing $200,000, propelling it to multi-million dollar sales.
Unfortunately, DreamWorks was acquired by Universal, putting him back under the same label as his nemesis, Luke Lewis.
Refusing to work with Lewis again, Keith negotiated a deal with Universal: half ownership of his next album and a greatest hits compilation in exchange for launching his own imprint, Show Dog, distributed by Universal.
Enter Big Machine Records
- To share resources and personnel, Keith partnered with Scott Borchetta’s fledgling Big Machine Records.
- Seeing the potential, Keith invested $400,000 in Big Machine, securing an estimated 10% stake, according to Forbes (though the exact percentage remains undisclosed).
The Payoff:
- Borchetta’s keen talent scouting led to signing artists like Rascal Flatts, Tim McGraw, and, most notably, Taylor Swift. Their successes significantly boosted Big Machine’s financial standing and, by extension, Keith’s investment.
- As Borchetta himself humorously put it, “Toby’s a really smart businessman. How did I know? I sent him checks.”
Toby Keith’s net worth at the time of his Death
Toby Keith sadly passed away on February 5, 2024, after battling stomach cancer. At the time of his passing, his estimated net worth was $400 million.
Here’s a breakdown of his wealth contributors:
Music Career:
- As one of the best-selling country artists of all time, with chart-topping hits and numerous albums, music sales were a major contributor.
- He also actively toured, generating additional income.
Entrepreneurial Ventures:
- Investments: Owning a stake in Big Machine Records, which launched artists like Taylor Swift, proved highly profitable.
- Restaurants: The “I Love This Bar & Grill” chain, though experiencing some closures, brought in significant revenue.
- Liquor: His Wild Shot Mezcal business reportedly earns around $100 million annually.
Toby Keith’s Restaurant Empire
Toby Keith, the iconic country music star known for hits like “Should’ve Been a Cowboy” and “I Love This Bar & Grill,” has built a career beyond just music. One of his most successful ventures lies in the realm of brick-and-mortar: the restaurant industry.
The Birth of “I Love This Bar & Grill”
Inspired by his 2003 hit of the same name, Keith opened the first “I Love This Bar & Grill” in his hometown of Oklahoma City in 2008. The concept wasn’t just about food; it was about creating an experience.
Picture American comfort food, live country music, and a vibrant atmosphere featuring a 95-foot guitar-shaped bar – a true celebration of Americana.
The initial success of the Oklahoma City location fueled expansion across the US. At its peak, the chain boasted over 20 locations, spreading the “I Love This Bar & Grill” experience to various cities and states.
However, the journey wasn’t without its challenges. Some locations closed due to various factors, including market saturation and changing consumer preferences.
The Impact of the Restaurant Empire
While exact figures are undisclosed, estimates suggest that Keith’s restaurants generated significant income, contributing millions to his overall wealth.
More importantly, this venture diversified his portfolio, creating a revenue stream independent of his music career.
Toby Keith’s journey in the restaurant industry is a fascinating tale of brand extension, strategic investment, and the ever-changing landscape of dining. While challenges exist, his ventures have undeniably made him a player in the food world, proving that his talents extend far beyond the stage.
Toby Keith’s liquor business: Wild Shot Mezcal
Keith became interested in mezcal while traveling in Mexico and decided to launch his own brand after learning about the traditional production process. He partnered with Maestro Mezcalero Don Mateo to develop the Wild Shot recipe.
The mezcal is produced in San Luis Potosi, Mexico, from 100% Espadin agave and is available in three expressions: Silver, Reposado, and Añejo.
Reception
Wild Shot Mezcal has received mixed reviews from critics. Some have praised its flavor, while others have found it to be too smoky. However, the brand has been commercially successful, with sales exceeding $100 million annually.
Wild Shot Mezcal is available in over 40 states in the United States, as well as in Canada and Mexico.
Additional Information
- Wild Shot Mezcal is a certified organic product.
- The brand supports a number of charitable causes, including the Toby Keith Foundation, which helps critically ill children and their families.
- In 2015, Keith sold a minority stake in Wild Shot Mezcal to the Sazerac Company.
Toby Keith’s Business Ventures: A Quick Overview
| Business | Type | Founded | Status | Revenue (Estimated) | Key Notes |
|---|---|---|---|---|---|
| Music Career | Recording & Touring | 1993 | N/A | $300 million+ | Chart-topping hits, successful tours |
| I Love This Bar & Grill | Restaurant Chain | 2008 | Varied (some closed) | $50 million+ | Country-themed restaurants with live music |
| Wild Shot Mezcal | Liquor Brand | 2013 | Active | $100 million+ | Mexican mezcal in 3 expressions |
| Show Dog Nashville | Record Label | 2004 | Active | N/A | Launched after leaving Universal |
| Big Machine Records (Investment) | Record Label (Investment) | 2004 | Active | N/A (Profitable) | Invested early, cashed out later |
The video below unveils some untold truths about Toby Keith that you might not know, check it out:
Conclusion
- Toby Keith’s entrepreneurial spirit and strategic investments, notably in Big Machine Records and the restaurant industry, significantly contributed to his amassed wealth, diversifying his income beyond his successful music career.
- His stake in Big Machine Records, coupled with the success of artists like Taylor Swift, proved to be a lucrative venture, bolstering his financial standing over the years.
- The “I Love This Bar & Grill” restaurant chain, inspired by his hit song, provided not only a culinary experience but also a substantial revenue stream, although it faced challenges with some closures.
- Keith’s foray into the liquor business with Wild Shot Mezcal showcased his interest in brand extension and further diversified his portfolio.
- Despite facing setbacks and challenges along the way, Toby Keith’s business ventures have undeniably left a lasting impact on both the music and entrepreneurial worlds, solidifying his legacy as a savvy businessman in addition to his iconic status in country music.