TORONTO – Rogers Communications is poised to make an iconic addition to its sports and media properties, according to a report this morning in the Toronto Star.
According to the story, the wireless, cable and media giant is in talks with the Ontario Teachers Pension Plan to pay $1.3 billion for OTPP’s 66% stake in Maple Leafs Sports and Entertainment, owners of the Toronto Maple Leafs, Toronto Raptors, Toronto FC, Leafs TV, NBA TV Canada, the Toronto Marlies and the Air Canada Centre.
Add all this to what Rogers already owns in the Toronto Blue Jays, the Rogers Centre and the Sportsnet channels, and Rogers suddenly becomes one of the biggest, most powerful sports and sports broadcasting companies in North America.
Click here for the full story. Click here for another viewpoint from the Financial Post. The Globe and Mail says negotiations were preliminary and did not go far.
When contacted by Cartt.ca for comment on the report, Rogers issued this statement:
"We have a successful, long standing sponsorship and broadcasting arrangement with MLSE. Sports is an important part of Rogers and we’re always in discussions with companies to enhance the sports content we offer our customers.
"There’s no change to our current relationship with MLSE. As to the specifics, we don’t comment on rumour or speculation."
The word on Bay Street, (Cartt.ca talked to a couple of analysts), is that Teachers is actively shopping around its interest in MLSE but that 20.6% owner and board chairman Larry Tanenbaum has right of first refusal on any offer, with Bell Canada in the mix, too.
"The story is really premature at best, but I wouldn’t be surprised if (OTTP sold its MLSE stake) in the next six months or so," said one who spoke on condition of anonymity. "I’m not sure $1.3 billion is the right price though."
Said another analyst: "I don’t know if a deal is in the works but it all makes sense to me."
