The call letters of a San Juan Racing Association Inc. radio station here were incorrect in yesterday's editions. The firm's area radio stations are WUST and WJMD.

A newly formed broadcasting group headed by Larry Israel, former president of the Washington Post Co., is negotiating to buy San Juan Racing Associates, owner of a race track in Puerto Rico and 10 radio stations, including WUST-AM and WJBM-FM in Washington.

San Juan racing officials said the company has been offered $66 million, or $20 per share for the company's stock, which has traded recently around $14.

Israel was identified as the representative of the buying group by Robert Philipson, a Washington accounting firm president who is a director of San Juan Racing.

Other prominent Washington businessmen on the board of San Juan Racing include Joseph B. Danzansky, former president of Giant Food; and Raymond R. Dickey and Marvin Willig, partners in the law firm of Danzansky and Dickey.

Israel heads a new broadcasting subsidiary of Coca-Cola of New York, a regional franchise bottler. In January, New York Coke purchased its first station WIXT-TV in Syracuse, N.Y., from the Outlet Co. of Providence, R.I., owners of WTOP Radio in Washington.

Reached in a New York hotel late yesterday, Israel said he was in the midst of negotiations and could not comment on the report.

Dickey said San Juan Racing has been offered $17.50 cash and $2.50 in short-term notes per share for the 3.3 million shares of the company's stock.

"We're interested in this offer, but until we see the complete written terms we won't know what's going to happen," said Dickey.

Dickey said San Juan Racing officials were interested in a sale because "a number of the larger block stockholders are not getting any younger and would just as soon be in a more liquid position."

Last year San Juan racing reported earnings of $1.8 million on revenues of $38.3 million. The company's earnings were cut by a loss of $1.4 million on the Dips soccer franchise.

The company's largest single operation is the New El Comandante Race Track at Canovanas, P.R. The race track, completed in 1977, is the only one in Puerto Rico and has an exclusive franchise for off-track betting in the commonwealth.

With first-year operating problems the track produced pre-tax revenues of $924,000. The cash-rich company earned half that much -- $552,000 in interest on investments.

The biggest money maker of San Juan Racing is its group of radio stations which earned $2.6 million pretax.

Besides the two Washington stations, San Juan racing owns WKLA-FM in Atlanta; WIMI-FM in Miami, WQAL-FM in Cleveland, WYSP-FM in Philadelphia, WRLY-FM in Houston and WJIT-AM and WKTU-FM in New York. The stations operate under a variety of musical formats.

WKTU recently has been the sensation of New York broadcasting. Not even in the top 10 stations in New York two years ago, WKTU jumped to No. 2 in the ratings this summer after it switched to 24-hour disco music from "the mellow sound."

The four Washington directors have been associated with San Juan Racing since shortly after the company was formed, about 20 years ago. Although Dickey has sold most of his shares, the other three remain major shareholders, according to reports made to the Securities and Exchange Commission. Danzansky owns about 64,000 shares, Willig 38,000 and Philipson 29,000.