Rogers Communications Increases Stake in Maple Leaf Sports & Entertainment

Rogers Communications Inc. has announced an agreement to acquire a 37.5% stake in Maple Leaf Sports & Entertainment (MLSE) from Bell for C$4.7 billion. This acquisition will elevate Rogers’ ownership to a dominant 75% of the sports conglomerate. MLSE is notable for owning several professional sports teams, including the NHL‘s Maple Leafs, NBA‘s Raptors, CFL‘s Argonauts, MLS‘s Toronto FC, and AHL‘s Marlies.

Prior to this transaction, Rogers and Bell each owned an equal share in MLSE. The remaining 25% is held by MLSE’s chairman Larry Tanenbaum through his holding company, Kilmer Sports Inc. In addition, OMERS, a Canadian pension fund, acquired a 5% indirect stake in MLSE in 2023 through a 20% direct interest in Kilmer Sports.

“MLSE is one of the most prestigious sports and entertainment organizations globally, and we are proud to expand our ownership,” said Tony Staffieri, President and CEO of Rogers. “As Canada’s leading communications and entertainment company, live sports and entertainment are vital to our core business strategy.” Rogers, which also owns Sportsnet and Major League Baseball’s Blue Jays, values MLSE in its entirety at C$12.53 billion. The transaction is anticipated to conclude by mid-2025, pending necessary league and regulatory approvals.

In response, Bell has stated it plans to utilize the proceeds from this sale to reduce debt and further its evolution from a traditional telecommunications company to a technology company. Bell has also negotiated to retain broadcast rights for Leafs and Raptors games on TSN for the upcoming 20 years, subject to league permissions.

The framework of this deal ensures Bell will continue to sponsor the Raptors, Argonauts, and Toronto FC. Bell’s CEO, Mirko Bibic, emphasized the company’s continued support for these teams even as they focus on financial strategies for growth.

This strategic acquisition reportedly promises Rogers a simplifying in decision-making within MLSE, aligning decisions more closely with Rogers’ objectives. Furthermore, it positions them as the largest owner with a vested interest of 75%, further integrating their expansive communication and media portfolio.

Historically, Rogers and Bell first entered the MLSE ownership landscape in 2011, through a C$1.07 billion transaction, solidifying their partnership the following year with a purchase from the Ontario Teachers' Pension Plan.