Teachers’ to keep stake in MLSE after review
Posted November 25, 2011 3:58 pm.
This article is more than 5 years old.
TORONTO, Ont. – The Toronto Maple Leafs are off the market.
The majority owner of Maple Leaf Sports and Entertainment, the Ontario Teachers’ Pension Plan, said it will maintain its ownership stake in this country’s largest sports enterprise.
In a statement, the Teachers’ Pension Plan said MLSE continues to be a very successful investment.
Keith MacIntyre, president of K. Mac & Associates, said that’s probably why the group decided to keep its 80 per cent stake in the company.
“After doing due diligence, they’ve discovered that there’s a real value here, and it looks like they think they can probably increase and grow the value,” MacIntyre said.
But he said it will take some effort from the Leafs.
“They have to start putting something on the ice that’s going to win. The time-frame for that is getting shorter and shorter,” MacIntyre added.
The teachers have spent the last eight months trying to find a buyer for their stake in MLSE. Kilmer Sports, which is controlled by Toronto businessman Larry Tanenbaum, owns the remaining stake.
In a release, MLSE said the Teachers’ has always provided its teams with what they need to compete on the ice.
“From the onset, we knew a change in ownership was not a foregone conclusion. Teachers’ said then they were exploring the possibility of a sale in response to unsolicited expressions of interest they had received,” MLSE said.
“Teachers’, along with Kilmer Sports, are great owners. They have always provided our teams with the resources needed to compete on the ice, on the court and on the pitch. MLSE has been operating “business as usual” throughout this process and will continue to do so.”
The teachers’ stake in MLSE is worth between $1.5 billion to $2 billion, and MacIntyre said not a lot of organizations can fork out that money right now.
But there were a few potential buyers, including numerous media and telecom businesses.
In addition to the Leafs, MLSE also owns the NBA’s Toronto Raptors, the AHL’s Toronto Marlies, the MLS’s Toronto FC and the Air Canada Centre, as well as several media assets.
