Telcos reportedly among those to bid for MLSE stake
Posted March 14, 2011 1:12 pm.
This article is more than 5 years old.
Some of the country’s largest telecom firms are reported to be among the list of those interested in buying a controlling interest in the crown jewel of Canadian sports: Maple Leaf Sports and Entertainment.
The Ontario Teachers’ Pension Plan confirmed Saturday it was putting its 66 per cent stake in MLSE up for sale. The business includes the Toronto Maple Leafs, Raptors, Marlies and Toronto FC soccer team.
Now, speculation is reaching a fever pitch as to who will officially throw their hat into the ring.
Published reports have cited four of Canada’s top telecommunications companies as the frontrunners to take over ownership: Rogers Communications, Bell Canada, Shaw Communications and Telus Communications.
“This is all about content, and these properties are tremendous content. And for a generation that is moving towards wireless, that 24-23 or 18-34 age group, wireless content is the key,” said Richard Powers of the Rotman School of Management.
After several unsuccessful attempts to bring another NHL franchise to Ontario, Research In Motion co-CEO Jim Balsillie has also been named as a potential buyer. He refused to comment Monday.
But, all suitors will have to go through current MLSE chairman Larry Tanenbaum, who owns a 20.5 per cent interest, and TD Capital, who own the remaining 13.5 per cent.
Tanenbaum has the first right of refusal and can match any offer from an outside firm.
The ownership of MLSE has been a question mark for months now. Reports first surfaced in December that Rogers was interested in buying out Teachers.
On Monday, Rogers released a statement on the rumours:
“Rogers has a successful, long standing sponsorship arrangement with MLSE. Sports is an important part of Rogers and we’re always looking to enhance the sports content we offer our customers. There’s no imminent change to our relationship with MLSE and we don’t comment on rumour or speculation.”
“Rogers would have had to be seen as one of the primary bidders. In the news this morning, they have said they are not interested but that could be just a negotiation ploy. They have to be looking at it. Then you start taking a look at other players, maybe the big beer companies like a Molson or a Labatt,” said Powers.
Teachers is reportedly asking about $1.5-billion for its stake.
