Rogers Communications has bought Bell out of its stake in Maple Leaf Sports & Entertainment, the company that owns the Toronto Maple Leafs and Toronto Raptors, for $4.7 billion.
Bell Canada Enterprises (BCE Inc.), which owns 37.5 per cent of MLSE, said in a media release Wednesday that the deal is expected to close in mid-2025.
The company said that it is selling its ownership stake to reduce its debt and “support its ongoing transformation” from a telecommunications firm to a tech company.
Rogers and Bell currently share the rights for the Leafs and the Raptors. Bell Media says it has reached a long-term, 20-year agreement with Rogers to renew the rights deal once it expires.
Pending approval from each league, Rogers says Bell will have access to content rights for “50 per cent of Maple Leafs regional games and 50 per cent of Toronto Raptors games for which MLSE controls the rights.”
Bell has sold its stake in Maple Leaf Sports & Entertainment, the company that owns the Toronto Maple Leafs and Toronto Raptors, to Rogers Communications for $4.7 billion.
In addition to the Leafs and Raptors, MLSE owns soccer club Toronto FC, the AHL’s Toronto Marlies and the CFL’s Toronto Argonauts.
Rogers and Bell closed a deal to jointly acquire a 75 per cent stake in MLSE in August 2012.
Bell CEO says deal brings ‘financial flexibility’
Cary Kaplan, president of Cosmo Sports Entertainment in Toronto, called the Rogers and Bell co-ownership of MLSE extremely unusual, likening it to “Coke and Pepsi owning a team together.”
While the buyout might not make any immediate difference to fans, “what it should mean is that Rogers will spend like the Yankees and Dodgers and Lakers,” said Kaplan.
“Will Rogers step up and spend [on those teams] based on the financial capacity that that company has?”
Under the new deal, which is subject to regulatory approvals, Rogers will have a 75 per cent majority ownership of the company.
A spokesperson for the Competition Bureau confirmed to CBC News that the regulator would be reviewing the proposed transaction between Rogers and Bell.
MLSE chair Larry Tanenbaum owns a 20 per cent stake. He sold a five per cent share in the company to Canadian pension fund Ontario Municipal Employees Retirement System (OMERS) in the summer of 2023.
“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 Rogers CEO and president Tony Staffieri in a statement.
“Together with our sports and media assets, we plan to surface more value for shareholders long-term,” said Staffieri. “This agreement also ensures long-term Canadian ownership and investment of these iconic teams.”
Rogers said the purchase will not affect its debt leverage “and financing will include private investors.”
Mirko Bibic, the CEO and president of BCE Inc., said the company was proud of its time co-owning the sports teams.
He added that “today’s announcement demonstrates that we are focused on creating the financial flexibility to support our ongoing transformation and core growth drivers.”