Rogers Communications Inc. (TSX: RCI.A and RCI.B) (NYSE: RCI) (“Rogers”) today announced it has signed an agreement to buy Bell’s 37.5% ownership stake in Maple Leaf Sports & Entertainment (MLSE) for C$4.7 billion.
“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 Tony Staffieri, President and CEO, Rogers. “As Canada’s leading communications and entertainment company, live sports and entertainment are a critical part of our core business strategy.”
Rogers has invested $14 billion in Canadian sports over the last decade. With this transaction, Rogers will continue to invest to bring championships to Canada.
“Winning is everything for fans, and that’s why we’re committed to investing to bring more championships to Canada,” said Edward Rogers, Executive Chair, Rogers. “We’re passionate about sports and we’re passionate about winning.”
Financing for this transaction will not affect Rogers debt leverage and financing will include private investors.
“MLSE continues to appreciate significantly, and 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.”
This agreement adds to Rogers existing sports portfolio including ownership of the Toronto Blue Jays, Rogers Centre and Sportsnet, the number one sports network in Canada. The company also has strategic partnerships with the Vancouver Canucks, the Edmonton Oilers, the Calgary Flames and the NHL. When the transaction closes, Rogers will be the largest owner of MLSE with a controlling Interest in 75% of MLSE.
The deal will provide Bell with the opportunity to renew its existing MLSE broadcast and sponsorship rights long-term at fair market value. This includes access to content rights for 50% of Toronto Maple Leafs regional games and 50% of Toronto Raptors games for which MLSE controls the rights. The transaction is subject to league and regulatory approvals.
