- Rogers Communications (TSX:RCI.A) will pay C$4.7 billion to Bell to become majority owner of Maple Leaf Sports & Entertainment, the parent company that owns the Toronto Maple Leafs and Toronto Raptors.
- Rogers will buy BCE Inc.’s (TSX:BCE) 37.5 per cent stake in MLSE, the two telecommunications giants announced Wednesday.
- Sportico reported the valuation of MLSE at US$9.3 billion.
- Shares of Rogers Communications Inc. are down 1 per cent, trading at C$55.50, and shares of BCE Inc. are up 4.32 per cent, trading at C$48.98.
Rogers Communications (TSX:RCI.A) will pay C$4.7 billion to Bell to become majority owner of Maple Leaf Sports & Entertainment, the parent company that owns the Toronto Maple Leafs, Toronto Raptors and other sports properties.
Rogers will buy BCE Inc.’s (TSX:BCE) 37.5 per cent stake in MLSE, subject to league approvals, the two telecommunications giants announced Wednesday. With the sale, Sportico reported the valuation of MLSE at US$9.3 billion.
“MLSE is one of the most prestigious sports and entertainment organizations in the world and we’re proud to expand our ownership of these coveted sports teams,” Tony Staffieri, president and CEO of Rogers, 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.”
In addition to the NHL’s Maple Leafs and the NBA’s Raptors, MLSE owns Toronto FC of Major League Soccer, Toronto Argonauts of the Canadian Football League, the Toronto Marlies of the American Hockey League and Scotiabank Arena, home of the Leafs and Raptors.
As part of the deal, Bell Media has secured access to content rights for the Maple Leafs and Raptors on its TSN sports network for the next 20 years through a long-term agreement with Rogers, also subject to league approvals, according to BCE’s news release. Rogers’ release stated that Bell will have the opportunity to renew its existing MLSE broadcast and sponsorship rights long-term at fair market value. This includes access to content rights for 50 per cent of Toronto Maple Leafs regional games and 50 per cent of Toronto Raptors games for which MLSE controls the rights.
“We are proud of our time as co-owners of these iconic sports teams, and through this agreement have ensured that fans can count on Bell’s continued support of their teams. Today’s announcement demonstrates that we are focused on creating the financial flexibility to support our ongoing transformation and core growth drivers,” Mirko Bibic, president & CEO of BCE Inc. and Bell Canada, said in a statement.
According to BCE, it plans to direct proceeds of the sale towards reducing debt “and to support its ongoing transformation from telco to techco with a focus on core growth drivers.” BCE stated it expects the deal to close in mid-2025.
Back in 2012, BCE and Rogers made a surprising agreement to purchase equal shares, amounting to a majority, of MLSE from the Ontario Teachers’ Pension Plan for C$1.32 billion.
While Rogers later paid a record C$5.2 billion for exclusive NHL media rights over 12 years beginning with the 2014-15 season, Bell Media’s TSN has held local broadcast rights for the Maple Leafs. MLSE chairman Larry Tanenbaum owns 20 per cent of MLSE through his holding company Kilmer Sports Inc., and the remaining 5 per cent is owned by Canadian pension fund OMERS.
Rogers’ sports portfolio also includes sports network Sportsnet, Major League Baseball’s Toronto Blue Jays and the Blue Jays’ stadium, Rogers Centre.
“Winning is everything for fans, and that’s why we’re committed to investing to bring more championships to Canada,” Edward Rogers, executive chair of Rogers, said in a statement. “We’re passionate about sports and we’re passionate about winning.”
Bell stated it will remain the official telecom sponsor of the Raptors and will maintain its sponsorships of the Argonauts and Toronto FC.
Shares of Rogers Communications Inc. (TSX:RCI.A) are down 1 per cent, trading at C$55.50 as of 9:51 am ET, and shares of BCE Inc. (TSX:BCE) are up 4.32 per cent, trading at C$48.98 as of 9:56 am ET.
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(Top photo of MLSE headquarters: Adobe Stock)
