Rogers would have a controlling interest by doubling its stake in the company.
Rogers would have a controlling interest by doubling its stake in the company.
Rogers appears set to take a controlling interest in the Toronto Maple Leafs.
The company has purchased Bell's 37.5 percent stake of Maple Leaf Sports & Entertainment at a whopping $4.7 billion Canadian ($3.5 billion US).
“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, Rogers. “As Canada’s leading communications and entertainment company, live sports and entertainment are a critical part of our core business strategy.”
Rogers, which already had a 37.5 percent stake in the company, would increase their ownership of the parent company that owns the Maple Leafs, Toronto Raptors, Toronto FC and Scotiabank Arena) to a majority stake of 75 percent.
The sale would put a $9.3 billion US valuation on MLSE.
“MLSE 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," the company said in a statement.
Larry Tanenbaum owns the other 25 percent stake in the company. It's believed that Bell and Rogers hold a clause to buy out Tanenbaum's stake by 2026. It's not clear what if any, impact this sale has on that.
Tanenbaum would 5 percent of his holding company, Kilmer Sports, to OMERS pension fund, which gave MLSE an indirect valuation of $8 billion at the time.
Rogers and Bell both bought a 37.5 percent stake in MLSE back in 2011. Rogers, which owns the Toronto Blue Jays, would increase its stake in sports after this transaction.
The deal is subject to regulatory and league approvals. According to Rogers, Bell is offered the opportunity to renew broadcast rights This includes access for 50 per cent of Maple Leafs regional games and 50 per cent of Toronto Raptors games for which MLSE controls the rights.
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