Rogers Communications has acquired Bell’s 37.5% stake in Maple Leaf Sports & Entertainment (MLSE) for $4.7 billion, giving it a 75% stake in the sports conglomerate.
Rogers and Bell owned equal shares of MLSE, which owns the Toronto Maple Leafs (NHL), Raptors (NBA), Argonauts (CFL), Toronto FC (MLS) and Marlies (AHL).
MLSE Chairman Larry Tanenbaum, through his holding company Kilmer Sports, owns 20% of the conglomerate after selling a 5% stake to OMERS, the pension fund manager for Ontario municipal employees, in the summer of 2023.
“MLSE is one of the most prestigious sports and entertainment organizations in the world and we are proud to increase our share of these coveted teams,” Rogers President Tony Staffieri said in a statement. “As Canada’s leading entertainment and communications company, sports and entertainment are key components of our business strategy.”
Rogers, which also owns the sports channel Sportsnet, also owns the Toronto Blue Jays (MLB) and their home, the Rogers Centre.
The transaction will bring MLSE’s total value to $12.53 billion. Bell said it is expected to close in mid-2025.
The company plans to use the proceeds from the sale “to reduce debt levels and to support its ongoing transformation from a telecommunications company to a technology company with a focus on key growth drivers,” it said in a separate statement.
The deal, subject to legal and league approvals, will provide Bell with the opportunity to “renew its broadcast rights and sponsorship agreements for MLSE properties on a long-term, market-value basis.” This includes access to regional rights to 50% of Leafs games and 50% of Raptors games for which MLSE controls the rights.
The company says it has secured content rights to the Maple Leafs and Raptors, which it will carry on its TSN channel for the next 20 years under a long-term agreement with Rogers, subject to league approval. TSN will also 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, we have ensured that fans can count on Bell’s continued support for their teams,” said Mirko Bibic, President and CEO of Bell Canada Enterprises and Bell Canada, in a statement.
“Today’s announcement demonstrates our focus on creating the financial flexibility needed to support our continued transformation and key growth drivers.”
Bell remains an official sponsor of the Raptors and will continue to sponsor the Argonauts and Toronto FC.
Rogers and Bell reportedly disagreed over the benefits of a WNBA franchise, with Tanenbaum ultimately securing a team in Toronto under the Kilmer banner. The acquisition by Rogers is expected to align MLSE with the decisions.
“MLSE has been fortunate to have one of the best ownership groups in sports and entertainment for many years and this has allowed MLSE to become one of the premier organizations in the industry,” Keith Pelley, MLSE president and CEO, said in a statement.
“As an organization, we are grateful for their contributions and remain fully focused on our priorities and promoting a championship mentality within MLSE.”
Rogers said the purchase would not affect its debt level and that “financing would include private investors.”
“MLSE continues to appreciate significantly and, with our sports and media assets, we look to create further value for our shareholders over the long term,” said Staffieri. “This agreement also ensures that the long-term ownership and investment in these iconic teams will remain in Canada.”
Rogers also has “strategic partnerships” with the Vancouver Canucks, Edmonton Oilers, Calgary Flames and the NHL. Once the deal closes, Rogers will be the largest owner of MLSE, with a 75% controlling interest.
Rogers and Bell closed their agreement to acquire a stake in MLSE in August 2012 after announcing the purchase of Ontario Teachers’ Pension Plan in December 2011.
By acquiring a 75% stake in MLSE, they formed a holding company to manage their combined properties. At the time, Kilmer Sports had increased its stake from 20.5% to 25.0%.
It remains to be seen whether Rogers plans to further increase its stake in MLSE. Under their ownership agreement, Rogers and Bell would have the right to buy out Mr. Tanenbaum’s stake by July 2026.
What does this mean for the supporters?
A sports business expert says Rogers Communications’ landmark deal to acquire telecom rival Bell Canada Enterprises’ (BCE) 37.5 per cent stake in Maple Leaf Sports & Entertainment (MLSE) could improve fan experiences, but make them more expensive.
Michael Naraine, a professor of sports management at Brock University, says the $4.7-billion deal, which gives Rogers a 75 per cent stake in the sports conglomerate, is aimed at cementing its dominance in Toronto’s professional sports market.
The Maple Leafs (NHL), Raptors (NBA), Argonauts (CFL), Toronto FC (MLS) and Marlies (AHL) are under the MLSE umbrella, with a 20% stake still held by Larry Tanenbaum through his holding company Kilmer Sports, and another 5% by OMERS, the pension fund manager for Ontario municipal employees.
Since Rogers also owns MLB’s Toronto Blue Jays, the company will have more opportunities to sell tickets and cross-sponsor its sports brands once the deal with MLSE closes — expected in mid-2025 — Naraine said.
He adds that Rogers has already shown its commitment to strengthening the fan experience with the Blue Jays, including through recent renovations to Rogers Centre, and that the company could do the same with Scotiabank Arena, the home of the Maple Leafs.
Rogers and Bell closed their agreement to acquire a stake in MLSE in August 2012 after announcing the purchase from the Ontario Teachers’ Pension Plan in December 2011.
