Great band.

"Baby Blue" was recorded by Badfinger for inclusion on their 1971 album, "Straight Up". The song was written by Pete Ham, produced by Todd Rundgren, and released on Apple Records. Because Al Steckler, the head of Apple US, felt that it needed a stronger hook in the opening, he remixed the track with engineer Eddie Kramer in February 1972, applying heavy reverb to the snare during the first verse and middle eight.

Ham wrote the song about a woman named Dixie Armstrong, whom he had dated during Badfinger's last US tour. She's referred to in the line "Dixie, when I let you go" and the last line "My Dixie dear".

The last US Top 40 hit for Badfinger, this song would mark the beginning of a devastating decline for the band. They were signed to The Beatles' Apple Records. "Straight Up" was their third album on the label and featured contributions from George Harrison. With "Baby Blue" and "Day After Day" getting a steady stream of airplay and Beatles comparisons, they toured twice in 1972 to packed houses.

All was not well behind the scenes, however, as Apple Records was on shaky ground. Badfinger recorded their fourth album, but their negotiations with Apple got snarled and a lawsuit prevented its release. These legal entanglements kept Badfinger from touring or recording while they were at the peak of their powers, and also drained them financially. In 1973, they signed to Warner Brothers and recorded their fifth album. Nearly two years after "Straight Up" hit the racks, Apple finally issued Badfinger's fourth album, titled "Ass", in the US in November of that year. Their self-titled Warners album came out in February 1974. By this time, the band's sound had fallen out of favor, and both albums underperformed. With their legal and financial problems becoming even more burdensome, Pete Ham hanged himself in 1975. His suicide note made it clear that the business dealings were his undoing; he expressed hopes that his death would serve as a cautionary tale for aspiring musicians. He was 27. Things got even worse. On the night of 18 November 1983, Tom Evans (vocals, bass, guitar) and Joey Molland (vocals, guitar, keyboards) had an extensive and heated argument on the telephone regarding past Badfinger income still in escrow from the Apple era, and the "Without You" songwriting royalties Evans was now receiving, which Molland, former manager Collins and Mike Gibbins (vocals, drums, percussion, keyboards) all wanted a share of. Following this argument, Evans hanged himself in the garden at his home in Richmond, England on the morning of 19 November 1983.