Beasley Inks LMA to Manage Two Las Vegas Stations

RADIO ONLINE | Friday, May 28, 2010 | 4:42pm CT

Beasley Broadcast Group inks a Local Marketing Agreement with GGB Las Vegas to provide management services for Rhythmic AC KOAS-FM (105.7) and Alternative KVGS-FM (107.9)/Las Vegas. GGB was formed by George Beasley, Chairman/CEO of Beasley Broadcast Group, to acquire KOAS and KVGS from Riviera Broadcast Group for $8.5 million. The acquisition is expected to be completed in the third quarter.

Under the LMA, Beasley will receive 40% of any ad revenue sold by its existing Las Vegas sales teams for KOAS and KVGS until GGB completes the acquisition of the stations. Once the stations are acquired by GGB Las Vegas, Beasley Broadcast will provide both stations with sales and other management services for 50% of the monthly station operating incomes.

The management deal between Beasley Broadcast and GGB will have an initial term of three years. In addition, GGB has granted Beasley Broadcast an option, with a term concurrent with the management agreement, to purchase KOAS and KVGS for $8.5 million (its cost) plus any losses incurred.

Commenting on the agreement, George Beasley stated, "This transaction allows Beasley Broadcast Group to leverage its existing Las Vegas operating and management capabilities to immediately generate new cash flow through a structure that requires no capital commitment.

Beasley currently owns KCYE-FM (Coyote Country 102.7), Classic Hits KKLZ-FM and News/Talk KDWN-AM.