Rogers is spending the equivalent of roughly 88.5 Auston Matthews contracts to take control of the Maple Leafs, the Raptors, and four other Toronto professional sports teams.
What happened: Rogers is paying Bell $4.7 billion to buy out its stake in sports ownership group Maple Leaf Sports Entertainment (MLSE). Since 2012, the two telecom giants each owned 37.5% of MLSE, but if the deal goes through, Rogers will take a controlling stake.
- The move expands Rogers’ vast sports portfolio — the company also has strategic partnerships with three other NHL teams and owns 100% of the Toronto Blue Jays.
Why it matters: One company could soon have complete control over all of the major men’s franchises in the country’s most lucrative sports market. This consolidation could lead to cool new products — Jays-Leafs ticket packages, perhaps — but will also result in less oversight.
- Rogers could up its MLSE stake even further as MLSE chairman and 20% stakeholder Larry Tannenbaum shifts his focus to Toronto’s WNBA team.
Big picture: The telecom giants are navigating tumultuous times, especially for legacy phone and TV businesses. Rogers is responding by doubling down on one of its bright spots (sports), while Bell can use the influx of cash to help with its ongoing restructuring.—QH