Rogers Communications Inc. has acquired Bell’s 37.5% stake in Maple Leaf Sports & Entertainment for C$4.7 billion, giving it a 75% stake in the sports giant.
Rogers and Bell held equal shares in MLSE, which owns the NHL’s Maple Leafs, NBA’s Raptors, CFL’s Argonauts, MLS’s Toronto FC and the AHL’s Marlies.
MLSE Chairman Larry Tanenbaum owns 25% of MLSE through his holding company, Kilmer Sports Inc. Canada Pension Fund OMERS indirectly purchased a 5% stake in MLSE in the summer of 2023. It purchased a 20% direct stake in Kilmer Sports for $400 million.
“MLSE is one of the most prestigious sports and entertainment organizations in the world, and we are proud to expand our ownership of this coveted sports team,” Rogers President and CEO Tony Staffieri said in a statement. “As Canada’s leading communications and entertainment company, live sports and entertainment are a critical part of our core business strategy.”
Rogers, who owns Sportsnet, already owns the Blue Jays of Major League Baseball and the Rogers Centre, home stadium.
The proposed sale would value MLSE at C$12.53 billion. Bell said the deal is expected to close in mid-2025.
Bell said in a separate statement that it plans to use the proceeds from the sale to “reduce debt levels and support our continued transformation from a telecommunications company to a technology company focused on our core growth drivers.”
Bell, which owns TSN, will continue to broadcast the game.
Rogers said the deal, which is subject to league and regulatory approval, gives Bell the opportunity to “renew existing MLSE broadcast and sponsorship rights on a long-term basis at fair market value,” including access to content rights for 50% of Maple Leafs games and 50% of Toronto Raptors games, where MLSE controls the rights.
Bell said the long-term deal with Rogers secured the rights to Leafs and Raptors content on TSN for the next 20 years, subject to league approval. TSN will also continue to broadcast Argonauts and Toronto FC games through independent deals with each league.
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“We are proud of our time together as co-owners of this iconic sports team, and this agreement ensures that fans will continue to support the team with Bell,” Mirko Bibic, president and CEO of BCE Inc. and Bell Canada, said in a statement. “Today’s announcement demonstrates our focus on creating financial flexibility to support our ongoing transformation and key growth drivers.”
Bell remains the official communications sponsor of the Raptors and will also continue its sponsorship of the Argonauts and TFC.
If the sale goes through, it would likely streamline MLSE’s decision-making.
Rodgers and Bell reportedly disagreed over the merits of a WNBA franchise, and Tanenbaum ultimately secured a Toronto team under the Kilmer banner.
“MLSE has been fortunate to have one of the premier ownership groups in sports and entertainment for many years, which has helped MLSE become one of the leading organizations in our industry,” MLSE President and CEO Keith Pelley said in a statement.
“As an organization, we appreciate their contributions and will remain fully focused on our priorities and further strengthening the championship spirit throughout MLSE.”
Rogers said the purchase would not affect debt leverage and that “the financing will involve private investors.”
“MLSE continues to experience significant growth and we plan to deliver even more value to our shareholders over the long term with our sports and media assets,” Staffieri said. “This agreement also ensures long-term Canadian ownership and investment in these iconic teams.”
Rogers also has “strategic partnerships” with the Vancouver Canucks, Edmonton Oilers, Calgary Flames and the NHL. Once the deal is completed, Rogers will become the majority owner of MLSE with a controlling interest of 75%.
Rogers and Bell announced a CAD1.07 billion acquisition from the Ontario Teachers’ Pension Plan in December 2011, and subsequently closed on the ownership of MLSE in August 2012.
They acquired a 75% stake in MLSE and created a holding company to manage the combined ownership position.
At that time, Kilmer Sports increased its ownership stake from 20.5% to 25%.
It is not yet known whether Rogers will further expand its share. Under the ownership agreement, Rogers and Bell have the right to buy Tanenbaum until July 2026.
Although he doesn’t like the limelight, Tannenbaum represented the Raptors on the NBA’s board of governors and the Leafs in the NHL.
© 2024 The Canadian Press
