The deal
Canadian telecommunications and broadcast heavyweight Rogers closed a deal to become the majority shareholder of multi-sport ownership group Maple Leaf Sports and Entertainment (MLSE).
Rogers has paid a total of CA$4.7 billion (US$3.4 billion) for the 37.5% stake in Toronto-based MLSE previously owned by rival telecoms firm BCE.
The deal was initially unveiled in September, with both parties saying at that point that completion was expected in mid-2025.
When added to the 37.5% stake in MLSE that was already owned by Rogers, that corporation now holds 75% of Canada's most prominent multi-club organization.
MLSE runs the Toronto Maple Leafs of ice hockey's NHL, NBA basketball's Toronto Raptors, Major League Soccer side Toronto FC, and the Toronto Argonauts of the Canadian Football League American football competition.
Why it matters
Rogers already owns the Toronto Blue Jays Major League Baseball franchise, and as such, this acquisition consolidates the firm as the dominant ownership vehicle of Canadian major league sports properties.
It now controls teams in four of the five major North American sports leagues.
This is added to Rogers being the home of Sportsnet, the most significant sports broadcaster in Canada.
Conrad Wiacek, GlobalData Sport's head of analysis, has commented: "Rogers Communications taking a majority stake in MLSE gives the communications giant 75% ownership of one of the largest sporting organizations in North America. Rogers, through this, now has control of some of the largest and most storied franchises in Canadian sports.
"With Rogers' focus primarily being in the acquisition of media rights for key sports across the Canadian market, this deal gives the media giant unprecedented leverage in media rights negotiations, especially with the NHL, given ice hockey’s popularity across Canada. With several local market deals already in place, Rogers may now be looking at developing a presence south of the border as well, given MLSE’s presence in other major sports leagues such as the NBA and MLS."
The firm also now controls Scotiabank Arena in Toronto (home of the Maple Leafs and Raptors) and the Raptors’ OVO Athletic Center training facility, which it adds to the Rogers Center (home of the Blue Jays) in its sports venue portfolio.
Recently, Rogers inked a bumper 12-year, US$7.7 billion media rights extension with the NHL, continuing the pair’s existing partnership through the 2037-38 campaign.
The deal includes rights across all broadcast platforms to the ice hockey league, in both English and French, covering all games.
This expanded deal consolidates Rogers’ dominance over the hockey landscape in Canada and includes unilateral national rights covering all broadcast platforms (TV, digital, and streaming) for every national game, with rights covering both English and French language telecasts.
Wiacek added, referring to Rogers' diversification of its investments: "Given the challenges facing the media market, diversifying their portfolio and taking ownership of key assets such as the Leafs and Raptors gives Rogers leverage and potential assets against which it can leverage finance should it look to invest more heavily in new technologies for the media business.
"With the Raptors and Leafs estimated to be worth around $7 billion, and with the value of sports teams only increasing, these assets will now be a key part of the Rogers portfolio moving forward.”
The detail
The Rogers-MLSE deal, which officially closed on July 1, was funded through a mix of revolving bank credit, combined with some direct cash input.
On the logic behind the acquisition, Rogers' chief executive and president Tony Staffieri commented: “MLSE is a valuable and appreciating asset and this investment positions us to unlock more value for Rogers shareholders.”
BCE and Rogers acquired their initial stakes in MLSE in 2012 for a combined CA$1.32 billion, illustrating the level that sports franchise values have burgeoned over the past decade.
In total, the Rogers-controlled sports franchises combined are currently valued at around US$9.2 billion.
The firm also, through the deal closing, now controls Scotiabank Arena in Toronto (home of the Maple Leafs and Raptors) and the Raptors’ OVO Athletic Center training facility, which it adds to the Rogers Center (home of the Blue Jays) in its sports venue portfolio.
In buying out BCE's stake in MLSE, Rogers also stops its biggest media competitor (BCE owner Bell Communications owns sports network TSN) from potentially taking control of the country's most successful sporting franchises.
