Shannon was born in Tucson, Arizona, and moved to the Texas Panhandle when he was nine. He grew up mainly in Dumas, Texas, north of Amarillo on Highway 287. Shannon joined his first band, The Avengers, around age 13. The band members were Shannon (guitar), Tim Easley (vocals), Jim Love (guitar) and David Davis (drums).
In high school Shannon was in the band Ekos. Soon after high school he moved to Dallas and joined a soul cover band in 1966, initially called The New Breed, and later The Young Lads. Shannon recorded two 45s with this band, which featured Tim Easly on vocals and Uncle John Turner on drums.
Shannon had the first of two important meetings at The Fog in Dallas in the late 1960s. There he first saw Johnny Winter. Shannon ended up backing Winter, and they formed a project known as The Progressive Blues Experiment in 1968. They cut one album for Sonobeat Records titled The Progressive Blues Experiment before being signed to Columbia Records by Clive Davis for $600,000 in 1969. Shannon appeared on both of these Columbia LPs, each released 1969; Johnny Winter (self-titled), and Second Winter.
At Woodstock, Johnny's brother Edgar joined them onstage. Johnny Winter ended up moving to a band featuring Rick Derringer in early 1970 that already had a rhythm section, and there was no room for Shannon or Turner. They landed in a San Francisco band called Krackerjack that comprised Uncle John Turner, drums; Mike Kindred, piano; Shannon, bass; Bruce Bowland, vocals; and John Staehely, guitar. Jesse "Guitar" Taylor played lead guitar with the band as well for a time during 1970 (there is a band photo as proof). According to Tommy's website, Stevie Ray Vaughan, known as "Skeeter," was part of this band in its later Austin incarnation, along with Robin Syler on guitar. Among other personnel changes, Shannon eventually left the group and was replaced by Dwight Davis. Krackerjack remained a group from 1970 to 1973.

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