Rogers Communications has now received all the necessary approvals. They’re now poised to buy out Bell Canada’s interest in Maple Leaf Sports and Entertainment (MLSE) for a cool $4.7 billion bucks. This historic deal, disclosed on September 18, will allow Rogers to raise its interest in MLSE up to 75 percent. That agreement has won the support of all five major sports leagues. These are just a few of the leagues—NHL, NBA, CFL, MLS, and AHL—that have returned.
MLSE, based in Toronto, is a prominent sports and entertainment company that owns several major franchises, including the NHL’s Toronto Maple Leafs, the NBA’s Toronto Raptors, the CFL’s Toronto Argonauts, Major League Soccer’s Toronto FC, and the American Hockey League’s Toronto Marlies. With this purchase, Rogers aims directly at a larger foothold in the sports space. It will double its portfolio of owned teams.
Larry Tanenbaum, the chairman of MLSE, now controls a 25 percent interest through Kilmer Sports Inc., his holding company. OMERS, the Ontario Municipal Employees Retirement System, has taken a big step. As a result, they invested about $400 million to acquire a 20 percent direct ownership stake in Kilmer Sports. With this investment, OMERS will have a five percent indirect ownership stake in MLSE. It further diversifies the organization’s ownership landscape.
The five leagues had long negotiations and evaluations to make this purchase. Today, after a long public planning process, they have signed off on the deal. Getting through these approvals represents a big step toward realization for Rogers. It positions the company to play an increasingly important role in the rapidly-expanding sports entertainment space.
Rogers increases its control of MLSE by buying out Bell’s share of ownership. This strategic step anchors the company to profit the most from the growing appetite for sports media rights and broadcasting opportunities. This acquisition is a natural extension of Rogers’ long-term dedication to enhancing the sports experience for fans from coast-to-coast-to-coast…
