BCE Sells 37.5% Interest In MLSE To Rogers For $4.7 Billion
Rogers Communications (TSX: RCI.A, RCI.B) is set to become the majority owner of Maple Leaf Sports & Entertainment. The telecom giant has entered into an arrangement with Bell (TSX: BCE) to acquire its 37.5% ownership stake in the iconic Canadian sports organization.
The agreement will see Rogers acquire the interest for $4.7 billion, with funding for the purchase said to have no impact on the firms debt leverage, with financing said to include private investors. Bell is expected to direct proceeds of the sale towards reducing debt levels, and to support its transition from “telco to techco”.
Upon closing, Rogers will have a 75% interest in MLSE, adding a controlling interest to its sports portfolio that includes the Toronto Blue Jays, the Rogers Centre and Sportsnet. Rogers also has partnerships related to the Vancouver Canucks, Edmonton Oilers, Calgary Flames, and the NHL.
“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. As Canada’s leading communications and entertainment company, live sports and entertainment are a critical part of our core business strategy,” commented Tony Staffieri, CEO of Rogers.
As part of the transaction, Bell is said to have the opportunity to renew its existing broadcast and sponsorship rights related to MLSE at fair market value. This is said to include access to content rights for half of Toronto Maple Leafs regional games, and half of Toronto Raptors games for which MLSE controls the rights. Bell, for its part, states that it has secured access to content rights for the Maple Leafs and Raptors for a 20 year period, subject to league approvals.
Bell also stated that it remains the official telecom sponsor of the Toronto Raptors, while continuing sponsorship of the Toronto Argonauts and Toronto FC.
The transaction is currently slated to close in mid-2025.
Rogers Communications Class B shares last traded at $55.49 on the TSX.
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