Rogers buys out Bell in $4.7-billion takeover of MLSE

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The Toronto sports scene looks a lot different this morning.

Rogers Communications now has a stranglehold on the sports market in the city having bought out Bell’s 37.5% stake in Maple Leaf Sports and Entertainment for $4.7 billion.

MLSE owns the Toronto Maple Leafs and the Toronto Raptors, the Toronto Argonauts, Toronto FC and the American Hockey League’s Toronto Marlies.

Rogers already owns the Toronto Blue Jays, the Rogers Centre and Sportsnet.

Kilmer Sports Inc., owned by MLSE chairman Larry Tanenbaum, controls a 20% stake in MLSE. The other 5% of MLSE is owned by OMERS, a Canadian pension fund.

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Within the deal, Bell retains the opportunity to renew its broadcast and sponsorship rights which includes 50% of the Leafs regional games and 50% of Toronto Raptors games for the next 20 years.

Bell also will continue to broadcast Toronto Argonauts games and Toronto FC games through independent agreements with the CFL and MLS.
The transaction is subject to league approvals, but is expected to close in mid-2025.

“MLSE has been fortunate to have one of the very best ownership groups in sports and entertainment for many years and it has led to MLSE becoming one of the leading organizations in our industry,” MLSE president and CEO Keith Pelley said in a statement. “As an organization, we are grateful for their contributions, and we remain fully focused on our priorities and further driving a championship mentality across MLSE.”

Bell and Rogers came together in 2011 to purchase controlling interest in MLSE from the Ontario Teacher’s Pension Plan. Together they formed a holding company to govern the combined ownership position.

The marriage wasn’t always an easy one, but the two sides managed to co-exist in the situation for the past 13 years.

At the time of the Bell/Rogers takeover, Kilmer Sports (Tanenbaum) owned 20.5% of MLSE, but bumped its holding up to 25%. Twelve years later Kilmer sold off 5% of that to OMERS.

It’s a bold move by Rogers and underscores the company’s focus in consolidating their hold on live sports in the market.

“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,” Rogers president and CEO Tony Staffieri said in a statement.

“As Canada’s leading communications and entertainment company, live sports and entertainment are a critical part of our core business strategy.”

Bell, on the other hand, is making a decided move away from sports ownership to focus on its transformation from a tele-communications giant to a tech giant.

“We are proud of our time as co-owners of these iconic sports teams and through this agreement have ensured that fans can count on Bell’s continued support of their teams,” Mirko Bibic, BCE’s CEO, said in a statement. “Today’s announcement demonstrates that we are focused on creating the financial flexibility to support our ongoing transformation and core growth drivers.”

Bell reportedly will use the money from this deal to pay down some debt and augment the transformation away from the telecommunications field.

Rogers’ dealing days may not be over, either.

According to published reports, Rogers will have an opportunity to buy out Tananbaum’s remaining 20% holding as of July 2026.

Tanenbaum remains the chairman of MLSE and was recently re-elected as Chairman of the NBA’s board of governors. He doesn’t appear to be ready to just fade away from the Toronto sports scene.

His bid to bring the WNBA into the MLSE fold was reportedly thwarted by Rogers executive chairman Edward Rogers. Tanenbaum went ahead on his own and purchased an expansion WNBA franchise that will begin play next year at Coca-Cola Coliseum.

That team and the PWHL’s Toronto Sceptres would be the only pro teams in Toronto without some form of Rogers’ ownership.