NASHVILLE, Tenn. (AP) – When Mike Dungan took over as president/CEO of Capitol Records Nashville, he had to wonder. He was the third chief in five years at a label built around one superstar, and it turned out that singer was about to retire.

Dungan arrived in July 2000. After Garth Brooks announced a few months later he was planning to retire, the new boss was left with a roster whose two biggest stars, Trace Adkins and Deana Carter, were trying to rebound from career slumps.

Six year later, Capitol might be the hottest label in Nashville.

Billboard magazine named it label of the year in 2005, and its flagship artists Keith Urban, Dierks Bentley and a rejuvenated Adkins continue to rack up big numbers. Its market share reached 11.41 percent last year – the highest since 1998.

“Ultimately, I think they remember what is the most important thing in this business, and that’s the artist and the music,” Urban’s manager, Gary Borman, said of Capitol. “I think some of the other labels lose sight of that from time to time.”

Started in the 1940s by composer Johnny Mercer (“Moon River”), Capitol Records has a rich country pedigree with Tex Ritter, Merle Travis, Ferlin Husky, Roy Clark, Buck Owens, Merle Haggard, Glen Campbell, Dottie West, Don Williams, Kenny Rogers and many others.

But by the late 1970s its roster had grown stale. Jim Foglesong was hired to perk things up and signed newcomer Brooks in 1988. The singer quickly became one of the top-selling recording artists in history.

As Brooks’ star rose he clashed with Foglesong’s successor, the hard-nosed producer Jimmy Bowen, and according to numerous accounts, was instrumental in forcing out Bowen and his successor, Scott Hendricks.

Former beer marketer Pat Quigley was brought in to take Brooks to even loftier heights in 1997. Critics say he funneled resources into the superstar at the expense of others on the roster.

“There were two or three pretty bad years there when it was really tough knowing that you weren’t the focal point and getting the kind of attention you felt like you needed,” said Adkins, who debuted with the label in 1996.

While Adkins has harsh words for Quigley, he harbors no hard feelings for Brooks: “If I had that kind of power I might do that, too. He had the juice, and he used it.”

Brooks declined comment for this story, and Quigley couldn’t be reached.

In the wake of Brooks’ disappointing 1999 project – an odd venture in which he released an album using a rock star alter-ego, Chris Gaines – Quigley was out and Dungan was in.

Dungan had been senior vice president and general manager for Arista Nashville, where he had worked with Alan Jackson, Brooks & Dunn and Brad Paisley.

Though he said he was retired, Brooks remained under contract with Capitol.

“Initially, I feared Garth because of the reputation he had as a guy who went after label heads. People were forecasting that I’d last a year or 18 months,” Dungan said. “But when I spent time with him it went the other direction. He inspired me, and I inspired him.”

In 2001, Brooks released one last album on Capitol, “Scarecrow.” After years of inactivity, he finally announced last June that he was leaving the label after 17 years.

Dungan declined to discuss Brooks’ departure except to say, “We just made a business decision. The label was no longer dependent on Garth financially.”

As label chief, Dungan has shown good instincts. Borman recalls that after Urban’s modest-selling debut on Capitol Nashville, Dungan was unusually patient in waiting for the follow-up – “Golden Road,” which became Urban’s breakthrough in 2002.

“Keith at that time wasn’t a superstar. Mike had to wait months and months more than normal for an artist at that level,” Borman said. “He gave him the freedom to develop what he needed to develop without any real assurance that it was going to work.”

Adkins, whose career was in the tank when Dungan arrived, also prospered, beginning with his 2001 album, “Chrome.”

“He’ll sit and discuss things with you – not just sit and talk at you,” Adkins said of Dungan. “He’s a nice guy, and nice guys in this business don’t always do that great.”

But there have been missteps. Deana Carter asked to be released after Dungan was cool to her new material. Cyndi Thomson, a promising young singer whom Dungan had signed and who had a No. 1 hit on her 2001 debut, decided she didn’t want to be a recording star anymore and left the industry in 2002 (she rejoined the roster this year).

More recently, Capitol struggled with debut singles by Amber Dotson and Ryan Shupe & the Rubberband. It also gambled on two veterans, with mixed results. Merle Haggard’s “Chicago Wind” was a commercial bust, while Kenny Rogers’ new one, “Water & Bridges,” has so far seen only modest success.

Still, insiders say Dungan has accomplished what he was hired to do. When he came aboard, the label was clearly in transition.

“Garth’s economic dominance was drawing to a close, so the mission was to break new acts and develop existing ones,” said David Ross, publisher of the industry publication Music Row. “Almost six years later, Dungan’s team has emerged sporting a platinum roster any label would be proud to claim.”

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On the Net:

http://www.capitol-nashville.com

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