Rogers acquires majority MLSE stake from Bell in $4.7B deal

Rogers Communications Inc. has acquired Bell’s 37.5 per cent stake in Maple Leaf Sports and Entertainment (MLSE) for $4.7 billion.

MLSE is the parent company of the NHL’s Toronto Maple Leafs, the NBA’s Toronto Raptors, Toronto FC of MLS and the CFL’s Toronto Argonauts. It also owns the AHL’s Toronto Marlies and the Raptors 905 of the NBA G League.

When the transaction closes, Rogers will be the largest owner of MLSE, with a 75 per cent controlling interest. The transaction is expected to close in mid-2025.

“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 of Rogers.

“As Canada’s leading communications and entertainment company, live sports and entertainment are a critical part of our core business strategy.”

Rogers already owned 37.5 per cent of MLSE prior to Wednesday’s agreement with BCE. MLSE chairman Larry Tanenbaum owns the remaining 25 per cent through his holding company, Kilmer Sports Inc.

In 2012, Rogers and Bell agreed to purchase a majority of MLSE from the Ontario Teachers’ Pension Plan for $1.32 billion ($1.78 billion).

Deal will allow Bell to renew existing MLSE broadcast rights

Rogers also owns MLB’s Toronto Blue Jays, Rogers Centre and Sportsnet, which have NHL national broadcasting rights. Sportsnet will continue to broadcast half of the Maple Leafs’ regional games and half of the Raptors’ games controlled by MLSE.

“MLSE continues to appreciate significantly, and together with our sports and media assets, we plan to surface more value for shareholders long term,” added Staffieri. “This agreement also ensures long-term Canadian ownership and investment of these iconic teams.”

Rogers wrote in a company news release that the deal will allow Bell to renew its existing MLSE broadcast and sponsorship rights long-term at “fair market value.” This includes access to content rights for 50 per cent of Maple Leafs regional games and 50 per cent of Raptors games. The transaction is subject to league and regulatory approvals.

Bell said the telecommunications provider intends to direct the sale proceeds toward reducing debt levels. TSN, which Bell owns, will continue to broadcast Argonauts and Toronto FC games through independent agreements with the respective leagues.

“We are proud of our time as co-owners of these iconic sports teams, and through this agreement, have ensured that fans can count on Bell’s continued support of their teams,” said Mirko Bibic, President and CEO of BCE Inc. and Bell Canada.

“[Wednesday’s] announcement demonstrates that we are focused on creating the financial flexibility to support our ongoing transformation and core growth drivers.”

Rogers is the parent company of CityNews and its affiliates.