Rogers Communications Inc. has announced a $4.35 billion deal to acquire the remaining 25% stake in Maple Leaf Sports & Entertainment from Kilmer Sports Inc. This move, according to Rogers CEO Tony Staffieri, marks a significant moment for the company, providing more opportunities to invest in top-tier teams, offer unique experiences to fans and customers, and drive long-term value for shareholders.
MLSE, based in Toronto, owns various sports teams including the NHL’s Toronto Maple Leafs, the AHL’s Toronto Marlies, the NBA’s Toronto Raptors, the MLS’s Toronto FC, and the CFL’s Toronto Argonauts. Additionally, it operates the Scotiabank Arena and has investments in the Coca-Cola Coliseum and BMO Field.
Rogers had previously acquired Bell’s 37.5% stake in MLSE, resulting in a 75% ownership stake. The recent deal to purchase Kilmer’s remaining 25% stake solidifies Rogers’ full ownership pending league approvals, expected to be finalized in the fourth quarter of this year.
Aside from MLSE, Kilmer’s Larry Tanenbaum also owns Toronto’s WNBA team, the Toronto Tempo, and has recently become an investor in the PWHL. Following the deal, Rogers plans to enhance its sports business by combining it with its core connectivity business, presenting a competitive edge in the market.
Moreover, Rogers aims to enhance fan experience by expanding affordable options, improving ticket access, and hosting ticket giveaways. The company intends to sell a minority stake in its consolidated sports, media, and entertainment assets over the next year.
Rogers’ portfolio includes ownership of the Rogers Centre, home of the Toronto Blue Jays, and Sportsnet, a television network that broadcasts numerous sporting events. The company also has partnerships with various sports teams and leagues, including the Vancouver Canucks, Edmonton Oilers, Calgary Flames, NHL, NBA, MLB, and Live Nation.
Following the acquisition, former MLSE president and CEO Richard Peddie expressed his lack of surprise at the deal between Rogers and Kilmer, highlighting the rapid execution and the high perceived value of MLSE exceeding $17 billion. This significant valuation positions Tanenbaum as a major beneficiary of the sale.
In a statement to fans, Tanenbaum expressed pride in leaving a legacy of excellence and winning culture at MLSE. While stepping back from MLSE, Peddie believes Tanenbaum will continue investing in women’s sports, as indicated by Kilmer’s recent ventures in women’s basketball and hockey leagues. Peddie anticipates further growth and investment in this sector by Tanenbaum in the future.
