Arguably the most powerful sports ownership entity in the world has now officially been formed.
Canadian media giant Rogers Communications closed on Wednesday a $3.46 billion deal to acquire 37.5% of Maple Leaf Sports & Entertainment from Bell, another Canadian telecom power. The pact, in development since last September, brings the Rogers stake in MLSE to a controlling 75% and values the entire portfolio at $9.2 billion.
The agreement gives Rogers a dominant presence across Canadian pro sports, with its sports holdings now including MLB’s Blue Jays, the NHL’s Maple Leafs, the NBA’s Raptors, Toronto FC of MLS, the Canadian sports network Sportsnet, and Rogers Centre and Scotiabank Arena in Toronto, among numerous other assets. Rogers also just signed a 12-year, CDN $11 billion media rights extension with the NHL stretching to 2038.
“This investment positions us to unlock more value for Rogers shareholders,” said Rogers president and CEO Tony Staffieri of the MLSE deal closing. “We’re building something that lasts—on the ice, on the court, on the field, and across the country.”
To that end, supplemental moves are expected to reposition the various sports holdings, including potential spinoffs or equity stake sales. That’s due in part to the values of the Rogers-controlled pro teams now combining for far more than $9.2 billion, particularly in light of recent record-setting transactions for the NBA’s Lakers and Celtics.
“The multibillion-dollar value of our world-class sports assets is not reflected in our share price, and our priority is to change this,” Staffieri said during a first-quarter earnings call. “Our sports assets are unrivaled in Canada, and our sports portfolio is one of the best in the world. Sports assets continue to appreciate significantly in value, and that’s why investors remain very interested in holding a minority position in these appreciating assets.”
Even before the deal closed, Rogers’ influence and power were felt when MLSE parted ways last week with longtime Raptors vice chairman and president Masai Ujiri, who led the team to its first NBA title six years ago. Multiple reports have pointed to a long-standing divide between Ujiri and senior Rogers leaders. The Raptors’ situation, meanwhile, also parallels one with the Maple Leafs in which MLSE also recently cut ties with longtime team president and alternate governor Brendan Shanahan.
The other 25% of MLSE will be controlled by Kilmer Sports, the sports business arm of Larry Tanenbaum’s Kilmer Group. Rogers, however, has an option next year to acquire that stake, and Staffieri has said Rogers expects to exercise it.
