Scott Borchetta on Relaunching Big Machine Records After Leaving HYBE America: ‘This Is Going to Be Like the Early Days All Over Again’

Scott Borchetta is starting over and he couldn’t be more excited. “I can’t wait for us to be small again,” he says in his first interview after HYBE AMERICA announced Thursday (Feb. 12) that the Big Machine Label Group CEO/founder was leaving the company.

Borchetta reacquired the Big Machine name from HYBE and has relaunched Big Machine Records. In an interview that took place Thursday afternoon, Borchetta laid out his plans for his newest iteration of his label, including which artists he takes with him (Among the artists staying with HYBE are Thomas Rhett, Brett Young, Midland, Justin Moore, Carly Pearce, Preston Cooper, Jackson Dean and Mae Estes).

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Nashville-based BMLG, which Borchetta founded in 2005, become part of HYBE AMERICA in 2021 after HYBE purchased Ithaca Holdings. Ithaca bought BMLG 2019. As the end of Borchetta’s five-year contract with HYBE approached, the two entities looked at how to move forward and the answer was separately. Borchetta was itching to be on his own again and HYBE, which will announce more of its plans in coming days, was looking to move into other directions.

Borchetta declined to say how much he paid to buy the Big Machine Records name back from HYBE. Preferring to stay focused on his new company, he also stayed away from questions that had to do with how the new HYBE-owned label will run beyond what has already been announced, as well as if the changes had anything to do with BMLG’s Valory Music Co. president George Briner announcing his retirement earlier this week and if there would be layoffs in the reorganization.

The below interview was edited for length and clarity.

Why did you decide that you wanted to strike back out on your own?

I have never really been a great employee. I’ve always been an entrepreneur. I’ve always been around entrepreneurs, whether it was [former CEO of HYBE America] Scooter [Braun] or [Hybe’s Chairman] Bang. When [you look at] how many founder/CEOs have lasted a complete term within a new company, I’m really proud that I made my commitment and delivered it. When we start talking about what was next for both of us, I think that they really realized I’m so connected to the brand and that [my leaving] was probably the best conversation to have. I truly am so [grateful] to [chairman/CEO of HYBE AMERICA] Isaac Lee and [HYBE CEO] Jason Lee and Chairman Bang for this opportunity. They went over and above and I’m just so thrilled. And to know that “Hey, the handcuffs are off.” Now we just go again. I don’t have to check with anybody. And when we see something, we can go 200 miles an hour after it and go get it.

To clarify, your five-year deal that you signed in 2021 was up?

The actual deal is up in April. We parted on wonderful terms and so, as of today, I am a free man.

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You used the word handcuffs, were there ways that you felt restrained?

Honestly, handcuffs is not fair. I don’t mean it like that. To say I have my wings is probably more appropriate. They were predominantly very hands off. They’re reimagining the company. The way that I operate and what they want to do moving forward with Isaac being the new CEO of HYBE AMERICA, they’ve got a different vision. I think it’s a great vision for them. My vision is different. And so, we came to a really beautiful place to support each other moving forward.

How did you tell the staff? Was there a Town Hall on Thursday?

Isaac Lee and myself addressed the staff, and it was pretty beautiful moment when he announced that I’m reacquiring Big Machine. I think everybody in that moment knew that was the last time that we would all be Big Machine in that room. It was a big standing ovation and a lot of love because they knew that this was the end of the season.

In the press release announcing your departure, it mentions a number of acts that HYBE will keep, but there were a lot of acts that weren’t mentioned. Will any be coming with you?

Several are coming with me: Tim McGraw, Rascal Flatts, Lady A, The Jack Wharff Band, Aaron Lewis, Cole Goodwin, MacKenzie Carpenter…

What about Riley Green?

Riley’s already with me. He’s at Nashville Harbor. [Big Machine Label Group’s] Nashville Harbor is an independent label outside of HYBE.

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So it was more than a rebranding when you changed the name to Nashville Harbor from BMLG Records in 2024 and it also included a restructuring of ownership? I don’t think people knew that.

I don’t think we were necessarily loud about it. We created a new opportunity a couple of years ago. Nashville Harbor is owned predominantly by me and president/CEO Jimmy Harnen; HYBE does have a minority ownership in it… [In 2024], we didn’t want anybody to not be focused on the artists, and we figured out a really great way to make [the transition] seamless. To a certain extent what we’re doing today with Big Machine is an extension of the idea that I came up with for Harbor. Both imprint names will continue on [and] they will share staff.

HYBE also keeps what is now called Big Machine Music, the publishing company you started in 2012 that includes Grammy-nominated songwriters Jessie Jo Dillon and Laura Veltz. Will you start a new publishing company?

We intend to start a new publishing company.

Do you have any restrictions or non-competes on what you can do?

There’s a no-compete with the artists and executives that are staying [with HYBE AMERICA], but as far as operationally, no. We are independent and wholly owned.

Are you taking any executives with you?

There are several. In addition to Sandi [Borchetta, senior vp of creative] and myself, there’s another 16 employees that are moving over, including Julian Raymond and Andi Brooks. I have a handful of people from other departments.

Who will handle your distribution?

Universal through HYBE distribution.  I am going to stay connected to HYBE and the Nashville division because we are going to continue distribution with them, and I will have access to backroom services, marketing…we’re going to stay with our international team. So, there’s still a lot of connectivity that we will have.

When Big Machine started 20 years ago, you were selling CDs for around $12 to brick and mortar outlets, now you’re receiving .0004 cents per song stream. How do the changing economics affect how you launch a label and how you sign artists?

I think one of the things that we’ve been a little bit weary of is not calling our artists influencers, but anybody who has an audience is an influencer…As far as signing, there has to be some spark. It’s one thing to see something that you think is incredible, but it’s got to go beyond. Do they have a social story? Are people attracted to whatever it is they have to say? I’ve seen so many things on paper that look great. It’s like, “How did that not work?” It’s like, “Well, nobody cared.” So, there’s got to be a life story, there’s got to be some kind of significant conversation that’s leading to selling a ticket and a stream. You can start from zero, but it’s never been harder.

Under the old Big Machine Label Group, there were five imprints, including a rock imprint. Do you anticipate starting another rock label?

As much as I love rock music–we tried really hard and we had some moderate success–but at this point, I couldn’t sign a rock artist and properly service them. When I had [Big Machine Rock GM] Heather Luke and that team, we had some hits with Badflower and with The Struts and all that, but we weren’t able to scale it. So right now, the focus is on our country and Americana stuff.

What does next week look like logistically? Do the 16 of you take over the current offices, which you own, on Tuesday after President’s Day?

All my people are in that office already, so they don’t have to move. We’ve got to pick up the ball because MacKenzie Carpenter, who was on Valory, has a radio tour that I’m not stopping so I’m changing out regionals. We have The Band Perry record out [Friday] on Nashville Harbor. I told everybody that I could tell ahead of this day, which wasn’t a lot, don’t lose focus of what we need to do. We were able to keep our eye on the ball to get this Band Perry record out and off to a great start. So, we can’t forget what our job is. Are there distractions? There’s always distractions. Is this one of the bigger ones? Yes, it is.

Are you staffing up beyond this 16?

I’ve got the 16 there and then we have another eight or so at Nashville Harbor. So, this is going to be between a 25 and 30-person staff, and so I think we’re in really good shape. I think we can cover everything we need to cover. We will continue to stay in our Big Machine headquarters, and I believe HYBE’s intention is to have their own standalone space which they will announce when they are ready.

What excites you the most about starting over again?

I think I’m most excited about being smaller again, reacquiring that indie vibe of literally having everybody able to fit in my conference room. I’m excited about going from as many as 40 artists when we had the rock label and now going down to like 11 or 12. This is going to be like the early days all over again. And that’s exciting.