Radio One To Invest In Maryland Casino
June 18, 2015 at 9:17 AM (PT)
RADIO ONE CEO ALFRED LIGGINS believes a MARYLAND casino is a good bet for the company. He made his thoughts known during a recent conference call with analysts.
LIGGINS said, “The company has kicked in a $5 million investment into MGM RESORTS’ planned 23-acre casino and hotel complex in PRINCE GEORGE’s COUNTY, MD. We believe that it's the start of a great partnership with them and just another effort on our part to use our platform to build value in other areas. It's a relatively low-risk and high-return effort."
The deal calls for MGM to use RADIO ONE stations in WASHINGTON, BALTIMORE and RICHMOND to promote the casino for five years after the doors open, an event currently scheduled for JULY 2016. RADIO ONE has the option of investing another $35 million in an arrangement that will ultimately give it a stake of about 6.6% in the casino after three years. Terms of the deal include a “put” clause that gives RADIO ONE the option to force MGM to buy out its stake whenever it chooses.
RADIO ONE is already doing business with MGM in DETROIT, where it also owns a casino.