Rogers Communications Inc. is taking over Bell’s share of Maple Leaf Sports & Entertainment, the company that owns the Toronto Maple Leafs and Raptors, for a whopping $4.7 billion.
On Wednesday, the telecommunications companies announced the agreement which will see Rogers become the largest owner of MLSE with 75 per cent ownership.
Rogers says the deal provides Bell with the opportunity to renew its existing MLSE broadcast and sponsorship rights long-term at fair market value, including access to content rights for half of Toronto Maple Leafs regional games and half of Toronto Raptors games for which MLSE controls the rights.
Read More
The rights for both teams is a long-term agreement with Rogers that will span the next 20 years and is subject to league approvals.
“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,” President and Rogers CEO Tony Staffieri said in a statement on Wednesday.
“As Canada’s leading communications and entertainment company, live sports and entertainment are a critical part of our core business strategy,” he continued.
Prior to the deal, Rogers had previously owned 37.5 per cent of MLSE with MLSE chairman Larry Tanenbaum owning the remaining 25 per cent through his holding company, Kilmer Sports Inc.
Back in November 2023, OMERS, one of Canada’s largest defined benefit pension plans, also acquired a five-per cent indirect stake in MLSE for US $400 million through a 20-per cent direct stake in Kilmer Sports Inc.
The MLSE also owns Toronto FC, Toronto Argonauts, Toronto Marlies, Raptors 905, TFC II (MLS Next Pro) and the Raptors Uprising Gaming Club.
“MLSE has been fortunate to have one of the very best ownership groups in sports and entertainment for many years and it has led to MLSE becoming one of the leading organizations in our industry. As an organization, we are grateful for their contributions, and we remain fully focused on our priorities and further driving a championship mentality across MLSE,” MLSE President and CEO Keith Pelley said in an email statement on Wednesday.
Bell says it intends to direct proceeds of the sale toward reducing debt levels and to support its ongoing transformation from telecommunications to technology company with a focus on core growth drivers.
“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,” BCE Inc. and Bell Canada President and CEO Mirko Bibic said in a statement.
Online, some people are not happy with Rogers becoming an even bigger conglomerate.
“How can one company be allowed to have such a sports monopoly in one city?” one X user said.
“Great now Rogers will have the majority share of ownership of MLSE @ 75 per cent. Watch prices for tickets and concessions go into the stratosphere,” another user said on X.
Meanwhile, others are hopeful about the move.
“Damn! Good for Rogers, Bell of course continues to not know how to diversify its portfolio, and sell off profitable assets, while keeping dying assets. Great business operation Bell LOL,” one user said on X.
“Hope Rogers contributes fairly to the sport rather than just putting their kiosks in the stadiums to sell cellular/internet plans,” another user said.
The sale is expected to close in mid-2025.
