Report: Maple Leafs Minority Owner Larry Tanenbaum Close to Selling Portion of Stake in Parent MLSE in $8 Billion Valuation
According to the report in Sportico, Tanenbaum’s attempt to sell a portion of his stake could run into opposition from co-owners Bell Media and Rogers Communications, who have rights of first refusal for any outstanding shares in the company.
Maple Leaf Sports & Entertainment (MLSE) chairman Larry Tanenbaum is reportedly in advanced discussions to sell a portion of his MLSE holdings to OMERS, a pension plan serving 540,000 Ontario municipal employees. The deal is said to be valued at over $8 billion based on the enterprise's worth.
In the report from sports business news outlet Sportico, If completed, the transaction would establish a new record for the highest valuation ever achieved in the sale of sports teams.
MLSE consists of a group of sports properties that includes the Toronto Maple Leafs, Toronto Raptors of the NBA, the Toronto FC of the MLS, and the Toronto Argonauts of the CFL, along with their respective venues.
Tanenbaum currently possesses a 25% ownership stake in MLSE, but the exact portion of his shares being sold remains undisclosed at this time.
The transaction faces a potential hurdle as Rogers Communications and Bell Canada, who each own a 37.5 percent stake in MLSE, hold a right of first refusal, granting them the option to acquire any shares being sold, according to Sportico. The deal also requires approval from both the NHL and NBA.
If the sale does indeed get consummated, it would be another increase in the rocketing valuation of sports franchises and entities.
The Ottawa Senators were sold earlier this month to Michael Andlauer at a $950 million valuation. Tampa Bay Lighting owner Jeff Vinik is selling a stake in the franchise to Arctos Sports Partners at a $1.4 billion valuation.
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