It is out with the Ontario Teachers Pension Plan and in with Bell Canada (BCE Inc.) and Rogers Communication. Nearly two weeks ago, Andrew Rivkin along with millions of Torontonians woke-up to news that Maple Leafs Sports and Entertainment (MLSE) had new owners. Rogers Communication who already own the Rogers Centre and the Toronto Blue Jays, joined forces with rival communications company Bell Canada to purchase a 75 percent stake in MLSE. Toronto philanthropist Larry Tanenbaum increased his stake in MLSE by purchasing an additional four percent for a total share of 25 percent. He remains the chairman of MLSE.
Bell Canada president and CEO George Cope, left, MLSE chairman Larry Tanenbaum, centre, and Rogers Communications president and CEO Nadir Mohamed
Andrew Rivkin is impressed with the purchase price of $1.32 billion for the 75 percent stake. MLSE owns the Toronto Maple Leafs, the Toronto Raptors, the Toronto Marlies (AHL) and Toronto FC (Major League Soccer). While these teams might not have the most wins, Rivkin notes that they have immense economical value. With the Toronto Maple Leafs being the highest valued franchise in the National Hockey League along with having the largest operating profits of any team since the lockout, both media giants have good reason to purchase MLSE.
When Andrew Rivkin first heard of the deal, he was surprised that two media corporations who both have rights to broadcast various games in Toronto could come together to form an agreement. Rivkin was put to ease when he heard that Bell and Rogers had agreed on a deal to take all the content – four teams, with radio, television, broadband and mobile – and split it right down the middle.
It will be interesting to see if any action is taken regarding Bell Canada’s minority interest in the Montreal Canadiens. The minority interest raises questions about conflict of interest, which is an ownership rule in the NHL. As of now no official action has been taken, but sources say that there is a waiver that can be granted by the NHL’s board of governors to approve the ownership.
In any case, Andrew Rivkin does not think that the new ownership will have any effect on the Maple Leafs or Raptors performance, but is a welcome change nonetheless.