Blue Sky Records was a custom label created by Steve Paul for Columbia Records. Paul was as the owner of "Steve Paul's The Scene", a popular New York City club in the 1960s and 1970s. In 1968, he became the manager of Johnny Winter.
In 1973, Paul started Blue Sky Records, a label promoted and distributed by Columbia Records. Between 1973 and 1982, it became the principal recording label for Johnny Winter, Edgar Winter, Rick Derringer and David Johansen, all of whom were managed by Paul. Through Johnny Winter's involvement as a producer, the label is also credited with reviving the later career of Muddy Waters. The label largely ceased operations with Winter's departure in 1983, which coincided with the termination of his management relationship with Steve Paul.