Rogers acquires majority MLSE stake from Bell in $4.7B deal

Rogers Communications Inc. has acquired Bell’s 37.5 per cent stake in Maple Leaf Sports and Entertainment (MLSE) for $4.7 billion.

MLSE is the parent company of the NHL’s Toronto Maple Leafs, the NBA’s Toronto Raptors, Toronto FC of MLS and the CFL’s Toronto Argonauts. It also owns the AHL’s Toronto Marlies and the Raptors 905 of the NBA G League.

When the transaction closes, Rogers will be the largest owner of MLSE, with a 75 per cent controlling interest. The transaction is expected to close in mid-2025.

“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,” said Tony Staffieri, president and CEO of Rogers.

“As Canada’s leading communications and entertainment company, live sports and entertainment are a critical part of our core business strategy.”

Rogers already owned 37.5 per cent of MLSE prior to Wednesday’s agreement with BCE. MLSE chairman Larry Tanenbaum owns the remaining 25 per cent through his holding company, Kilmer Sports Inc.

Whether Rogers looks to expand its share in MLSE even more remains to be seen. Under their ownership agreement, Rogers and Bell reportedly had the right to buy out Tanenbaum by July 2026.

In 2012, Rogers and Bell agreed to purchase a majority of MLSE from the Ontario Teachers’ Pension Plan for $1.32 billion ($1.78 billion).

Rogers also owns MLB’s Toronto Blue Jays, Rogers Centre and Sportsnet, which have NHL national broadcasting rights.

The proposed sale is expected to close in mid-2025 assuming it gets regulatory and league approval.

“There are a number of approval processes that need to take place, in particular, each of the leagues needs to approve the deal, and then from a government standpoint there are a few things that need approval – the CRTC – as well as The Competition Bureau,” said Staffieri.

Deal will allow Bell to renew existing MLSE broadcast rights

Sportsnet will continue to broadcast half of the Maple Leafs’ regional games and half of the Raptors’ games controlled by MLSE.

When Rogers’ existing ownership of the Blue Jays is factored in, the Canadian telecom giant may become the largest sports holding company in the world and the only one with franchises in the NHL, NBA, MLB and MLS.

“We’ve spent over $14.5 billion in the last decade in sports so it’s a core business for us and this opportunity came about and it was one that we felt fit immensely well with what we’re doing and where we are going,” said Edward Rogers III, the executive chairman of Rogers Communications.

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Rogers wrote in a company news release that the deal will allow Bell to renew its existing MLSE broadcast and sponsorship rights long-term at “fair market value.” This includes access to content rights for 50 per cent of Maple Leafs regional games and 50 per cent of Raptors games. The transaction is subject to league and regulatory approvals.

Bell said the telecommunications provider intends to direct the sale proceeds toward reducing debt levels. TSN, which Bell owns, will continue to broadcast Argonauts and Toronto FC games through independent agreements with the respective leagues.

“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,” said Mirko Bibic, President and CEO of BCE Inc. and Bell Canada.

“[Wednesday’s] announcement demonstrates that we are focused on creating the financial flexibility to support our ongoing transformation and core growth drivers.”

MLSE president Keith Pelley said in a brief statement it “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.”

Brendan Shanahan, president of the Maple Leafs, echoed that sentiment.

“We have great ownership here, we have my entire time since I’ve been in Toronto,” he told reporters as the Leafs opened training camp. “We’ve been very blessed with the support that we get from ownership. We don’t expect that to change with today’s news.

“We’ve been communicated with well, we’ve been supported, and they’re very committed to winning, as we are.”

Rogers is the parent company of CityNews and its affiliates.