11-7-13
Radio One CEO Alfred Liggins told investors and analysts yesterday that the company's planned investment in a casino is low risk and will produce a high return for shareholders if it happens. Radio One has the right, but not an obligation, to invest $40 million in the casino MGM hopes to build in Prince George's County Maryland, which Liggins says is right in Radio One's backyard and has a very high percentage of African Americans.
MGM is one of three firms bidding for the casino. Radio One would invest $5 million in the first quarter of 2014 and $35 million at a later date. Liggins said, "We made a pretty good deal. We would share in the percentage of gaming revenue in addition to an equity stake. There is a reasonable chance for a double-digit return." MGM is a client of Radio One's in Detroit and Liggins said they were looking for local people to be in business with. The agreement includes promoting the casino on Radio One radio stations.
Add a Comment Send This Story To A Friend
