Rogers Communications (TSX:RCI.A) to Acquire Majority Stake in Maple Leaf Sports & Entertainment for C$4.7 Billion

3 min read | September 19, 2024 12:17 AM EDT | By Team Kalkine Media

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Rogers Communications (TSX:RCI.A) to Acquire Majority Stake in Maple Leaf Sports & Entertainment for C$4.7 Billion — Image source: shutterstock

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Rogers Communications (TSX:RCI.A) has announced a monumental deal to acquire a 37.5 percent stake in Maple Leaf Sports & Entertainment (MLSE) from BCE Inc. (TSX:BCE) for C$4.7 billion. This acquisition will position Rogers as the majority owner of one of North America's most prominent sports and entertainment organizations, which includes iconic franchises like the Toronto Maple Leafs and Toronto Raptors.

The announcement, made on Wednesday, comes with a reported valuation of MLSE at US$9.3 billion, according to Sportico. Tony Staffieri, President and CEO of Rogers, expressed pride in expanding the company's ownership of these sought-after sports teams. "MLSE is one of the most prestigious sports and entertainment organizations in the world, and live sports and entertainment are a critical part of our core business strategy," Staffieri stated.

MLSE's portfolio not only features the NHL's Maple Leafs and the NBA's Raptors but also includes Toronto FC of Major League Soccer, the Toronto Argonauts of the Canadian Football League, and the Toronto Marlies of the American Hockey League. The organization also owns the Scotiabank Arena, which serves as the home for both the Leafs and Raptors.

As part of the agreement, Bell Media will secure content rights for the Maple Leafs and Raptors on its TSN sports network for the next 20 years. This long-term arrangement, also subject to league approvals, allows Bell to maintain a presence in broadcasting these teams, ensuring that fans can continue to enjoy coverage. Furthermore, Bell will have the opportunity to renew its existing MLSE broadcast and sponsorship rights at fair market value, including rights to 50 percent of the regional games for both the Maple Leafs and Raptors.

Mirko Bibic, President & CEO of BCE Inc. and Bell Canada, emphasized the importance of this partnership, stating, “We are proud of our time as co-owners of these iconic sports teams and have ensured that fans can count on Bell’s continued support.” He also noted that the proceeds from the sale would be used to reduce debt and assist BCE in its transformation from a traditional telecommunications company to a technology-driven entity.

The deal is expected to close in mid-2025. This acquisition builds on a historic partnership between Rogers and BCE, which began in 2012 when both companies jointly purchased MLSE from the Ontario Teachers’ Pension Plan for C$1.32 billion. The evolving landscape of sports broadcasting and ownership in Canada reflects a growing recognition of the financial and strategic importance of live sports within the telecommunications sector.

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