Five things to know about Rogers deal to buy Bell’s MLSE stake

TORONTO — Rogers has inched closer to having complete reign over the Toronto sports landscape, buying out Bell’s 37.5 per cent share of Maple Leaf Sports & Entertainment for $4.7 billion.

Once complete, the deal would give Rogers 75 per cent ownership of MLSE. Bell and Rogers have an even 37.5 per cent stake in the company.

The deal is subject to league and regulatory approvals, with Rogers saying that it provides Bell with the opportunity to “renew its existing MLSE broadcast and sponsorship rights long-term at fair market value.”

Meanwhile, Bell says it has secured content rights for the Toronto Maple Leafs and Toronto Raptors on TSN for the next 20 years through a long-term agreement with Rogers, which is also subject to league approval.

WHAT IS MLSE?

MLSE is a sports and entertainment company that owns several teams across the Toronto sports landscape. The company owns the NHL’s Maple Leafs, NBA’s Raptors, CFL’s Argonauts, MLS’s Toronto FC and the American Hockey League’s Marlies.

DOLLARS

The proposed sale puts MLSE’s valuation at $12.53 billion, with the valuations of the Maple Leafs and Raptors making up more than half of that amount.

The Maple Leafs are valued at an NHL-high US$2.8 billion and the Raptors at US$4.1 billion, good for 10th in the NBA, according to Forbes. Meanwhile, Toronto FC is valued at US$725 million.

WHAT ELSE DOES ROGERS OWN?

The communications giant owns broadcast network Sportsnet as well as Major League Baseball’s Blue Jays and its Rogers Centre home. It also has “strategic partnerships” with the NHL’s Vancouver Canucks, Edmonton Oilers and Calgary Flames.

TV RIGHTS

Bell claims to have retained the broadcast rights to Leafs and Raptors games on TSN. This includes access to content rights for 50 per cent of Maple Leafs regional games and 50 per cent of Raptors games, which MLSE controls the rights to.

Sportsnet, meanwhile, has said it intends to go after the NHL’s national broadcast rights again when the $5.2 billion, 12-year agreement it struck with the league expires after the 2025-26 season.

TSN will also continue to broadcast Argonauts and Toronto FC games through independent agreements with the CFL and MLS.

TANENBAUM’S ROLE

MLSE chairman Larry Tanenbaum, via his holding company Kilmer Sports Inc., owns a 25 per cent stake in MLSE. OMERS, a Canadian pension fund, purchased a five per cent indirect stake in MLSE in the summer of 2023 through a 20 per cent direct stake in Kilmer Sports for US$400 million.

However, under the ownership agreement, Rogers and Bell reportedly had the right to buy out Tanenbaum by July 2026.

Tanenbaum had also acquired a Toronto WNBA franchise earlier this year, which is set to begin play in 2026.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press