Canadian telecommunications and broadcast heavyweight Rogers has become the majority shareholder of multi-sport ownership and commercial real estate group Maple Leaf Sports and Entertainment (MLSE), after buying out rival telecoms firm BCE.
Rogers confirmed that it paid a total of CA$4.7 billion (US$3.4 billion) for BCE’s 37.5% stake in MLSE which, when added to the company’s own 37.5% stake, means it now holds 75% of Canada’s most prominent sports group.
The deal, which officially closed on July 1, was funded through a mix of revolving bank credit, combined with some direct cash input.
In terms of top-tier sports franchises, MLSE owns ice hockey's Toronto Maple Leafs NHL franchise, NBA basketball's Toronto Raptors, Major League Soccer side Toronto FC, and the Toronto Argonauts of the Canadian Football League.
The investment body also owns a number of smaller franchises, many of which are affiliated with their major league teams, such as the Toronto 905 NBA G League side, Toronto FC II of MLS Next Pro, and the American Hockey League’s Toronto Marlies.
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.”
Rogers by itself 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.
The firm also now controls Toronto’s Scotiabank Arena (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) as its sports venue portfolio.
BCE and Rogers acquired their 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.
The Rogers controlled sports franchises combined are valued at around US$9.2 billion, with the Raptors in particular growing in value thanks to the recent surge in NBA franchise values, while the Maple Leafs will also benefit from growing NHL entry fees.
The remaining 25% of MLSE is owned by Kilmer Sports Group, the investment vehicle of Canadian businessman Larry Tanenbaum, however Rogers holds an option that will allow it to acquire that stake also, one it is expected to use.
In the broadcasting world, Rogers owns major Canadian network Sportsnet, which holds the rights for the NHL, NBA, MLB, and more.
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.
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.
Additionally, national rights to the showpiece Stanley Cup finals and special events such as the league’s all-star game are also included, as are out-of-market rights for regional broadcasts.
Under the deal, Rogers holds the exclusive category sponsorship rights for both the NHL itself in Canada, as well as any major NHL event held in the country, aligning itself completely with the nation’s most popular sport.
In buying out BCE's stake in MLSE, it also boxes out its closest broadcast competitor (BCE owner Bell Communications owns sports network TSN) from control of the country's biggest sports teams.
