Rogers will spend $11 billion to hold onto one of the country’s most cherished pastimes: watching hockey.
Driving the news: The telco has signed a new 12-year deal to retain the NHL’s Canadian broadcasting rights, paying over double what it shelled out back in 2013. Once approved by team owners, the new deal would kick in for the 2026-27 season.
- Rogers was expected to be in a bidding war for the rights with Amazon — which already carries all Monday night NHL games in Canada — but offered top dollar before the U.S. tech giant had a chance to open its wallet.
- National Bank analyst Adam Shine told Bloomberg News that the high cost of the deal will likely lead to price hikes for subscriptions to the Rogers-owned Sportsnet.
Why it’s happening: With the traditional cable TV business hampered by cord-cutting and a decline in customers, Rogers CEO Tony Staffieri says live sports have become critical to attracting and keeping subscribers.
Big picture: Chairman Edward Rogers said last year that the company had spent upwards of $14.5 billion on its sports biz over the last decade. After it completes its $4.7 billion acquisition of Bell’s stake in Maple Leaf Sports & Entertainment (MLSE), Rogers will be the majority owner of every professional men’s sports franchise in Toronto.
What’s next: Rogers will have the chance to buy out the last remaining independent MLSE shareholder, Larry Tanenbaum, next year and take full control of what is already one of the world’s most valuable sports empires.—LA