Mark Cerami and Steve Drath. Initial funding was provided by R-tek, a company headed by former K-tel board members: Ray and Harold Kives, and their company took an initial 50% ownership in Priority. Priority bought out the R-tek interest in 1987.

Its first success came with novelty act the California Raisins. To support early operations, Priority Records licensed repertoire from others and released compilation albums using archive recordings while developing its own artist roster. Priority