Rogers Communications plans to bring in minority investors for a consolidated sports business it values at more than C$25 billion — about US$18.25 billion at current exchange rates — Sportico reported.
The plan accompanies Rogers taking full ownership of Maple Leaf Sports & Entertainment. On July 6, the telecom agreed to buy the remaining 25% stake in MLSE from Larry Tanenbaum's Kilmer Sports Inc. for C$4.35 billion, or roughly US$3.1 billion. That deal is expected to close in the fourth quarter of 2026 and is subject to league approvals.
What Rogers now owns
Full ownership of MLSE hands Rogers the NHL's Toronto Maple Leafs, the NBA's Toronto Raptors, MLS's Toronto FC, the CFL's Toronto Argonauts, the AHL's Toronto Marlies and Scotiabank Arena. Rogers separately owns MLB's Toronto Blue Jays, the Rogers Centre and the Sportsnet broadcast network — the assets that would be folded into the single entity being recapitalized.
Rogers reached 75% of MLSE by acquiring BCE's 37.5% stake, a C$4.7 billion (about US$3.5 billion) transaction announced in September 2024. As part of that arrangement, Bell — which owns TSN — retained 20-year broadcast rights to Leafs and Raptors games.
"This is a defining moment for Rogers," president and CEO Tony Staffieri said of the Kilmer agreement. Tanenbaum is stepping back as an owner under the terms of a 15-year shareholder agreement.
The valuation math
Sportico's current individual franchise valuations put the Raptors at US$4.66 billion, the Maple Leafs at US$4.25 billion, the Blue Jays at US$2.9 billion and Toronto FC at US$730 million — a combined US$12.5 billion for the four clubs. The more-than-US$18.25 billion figure Rogers is targeting is roughly US$5.75 billion above that combined total. The entity also includes Scotiabank Arena, the Rogers Centre, Sportsnet and the regional media rights.
The Kilmer purchase implied an MLSE valuation of roughly C$17.4 billion (about US$12.7 billion), around 39% higher than the valuation implied by the earlier BCE stake sale. One existing minority holder has already marked a gain: the OMERS pension fund's 5% stake, bought in November 2023 for about C$547 million (about US$400 million), is now worth roughly C$870 million (about US$635 million) — close to a 60% return.
Rogers intends to sell 20% to 30% of the combined business over the next year, a slice the company projects to be worth C$5 billion to C$7.5 billion (about US$3.7 billion to US$5.5 billion), with proceeds directed at reducing debt.
Where this sits in the market
The raise lands amid a run of record franchise prices. The Seattle Seahawks sold for US$9.6 billion earlier this year, and institutional money has moved steadily into control and minority positions — NHL owner Tom Dundon acquired the Trail Blazers for $4.25 billion, and the NBA approved the record $6.1 billion sale of the Celtics to private-equity executive Bill Chisholm. The league is also weighing new supply, having voted unanimously to explore expansion to Seattle and Las Vegas at a projected $7-10 billion per franchise.
The current NBA season is the first under an 11-year, US$77 billion media deal, nearly triple the value of its predecessor.
Source: Sportico, The Globe and Mail, and CBC News.
Comments