Rogers Communications Secures Dominant Position in Canada’s Sports Industry with MLSE Stake Acquisition

On 18th September 2024, Rogers Communications, a media powerhouse, announced its acquisition of Bell Canada Enterprises’ 37.5% stake in Maple Leaf Sports & Entertainment (MLSE) for a staggering $4.7 billion. This colossal transaction has handed Rogers the majority ownership of Canada’s most expansive and valuable sports conglomerate.

Implications of the Acquisition

MLSE, the parent company of several high-profile sports franchises, including the NHL’s Toronto Maple Leafs, NBA’s Toronto Raptors, Toronto FC of MLS, CFL’s Toronto Argonauts, AHL’s Toronto Marlies, and NBA G League’s Raptors 905, now sits in the hands of Rogers in its entirety. Prior to this, Rogers and Bell had successfully inked a deal in August 2012 to jointly acquire a 75% stake in MLSE. The remaining 20% stake resides with MLSE chair, Larry Tanenbaum.

Insights from Key Stakeholders

Tony Staffieri, the President and CEO of Rogers, expressed immense pride in the acquisition, asserting that “MLSE is one of the most illustrious sports and entertainment organizations globally.” He further emphasized that “as Canada’s leading communications and entertainment company, live sports and entertainment play a critical role in our core business strategy.”

Bell, in its news release, disclosed that the deal is slated for finalization in mid-2025. It retains the privilege to broadcast 50% of regional games for the Leafs and the Raptors that fall under MLSE’s jurisdiction. Rogers-owned Sportsnet will continue to broadcast 50% of Leafs and Raptors games.

Mirko Bibic, president and CEO of BCE Inc. and Bell Canada, stated, “We are proud of our time as co-owners of these iconic sports teams and have ensured through this agreement that fans can still rely on Bell’s continued support of their teams.” He further added that this move highlights their commitment to fostering financial flexibility to support their ongoing transformation and core growth drivers.

The Rising Value of MLSE’s Teams

Since Rogers and Bell’s original joint stake acquisition, the value of the Maple Leafs and the Raptors has skyrocketed. The Leafs, recently valued at $2.8 billion by Forbes, stands as the richest in the NHL. Sportico ranked the Raptors’ worth at $4.1 billion, placing them ninth in the NHL.

Keith Pelley, the president and CEO of MLSE, expressed gratitude towards their ownership group, stating, “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 a leading organization in our industry.” He emphasized that the organization remains steadfast in advancing its championship mentality across MLSE.