"Movin" Goes Spanish..Rick Dees in The Morning, Off The Air
Grupo Radio Centro, a Mexican broadcast company cannot buy a station in the U.S. under current American Law. Emmis Broadcasting, on the other hand, needs to lower debt. The two companies have worked out a deal to help both situations.
On Friday, Grupo Radio Centro signed a deal with Emmis to take over the sales and programming for KMVN-FM in Los Angeles. Radio Centro's deal will let them eventually buy the station. Centro has paid $14 million up front to Emmis to cover the first two years and will pay them $7 million a year after that for the next three years. Centro is financing that up front deal with a 13% interest.
Centro also has a 7 year deal to buy the station for $110 million...they can exercise that option any time in the next 7 years. The Mexican radio broadcaster said it can assign the option to a third party when it wants to purchase the station. Radio Centro isn't qualified under U.S. law to own a radio station.
This means that Rick Dees will no longer be heard on mornings in LA...He will continue working with Emmis on his Top 40 count down shows and has announced he will launch a new 24/7 radio channel at www.allnumber1hits.com.