Bell sells interest in Maple Leaf Sports for $4.7 billion

BCE Inc. has reached a deal to sell its 37.5 per cent interest in Maple Leaf Sports & Entertainment to Rogers Communications Inc. for $4.7 billion, giving Rogers a majority stake in Canada’s most valuable sports empire and advancing executive chairman Edward Rogers’ standing as one of the country’s most powerful sports industry executives.

The deal values MLSE at $12.5 billion and will come as a shock to Bay Street analysts who have speculated in recent years that neither telecom company would allow its rival to control the sports conglomerate.

As part of the sale, Bell Media has secured access to content rights for the Toronto Maple Leafs and Toronto Raptors on TSN for the next 20 years through a long-term agreement with Rogers, also subject to league approvals. TSN will continue to broadcast Toronto Argonauts and Toronto FC games through independent agreements with the respective leagues.

"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, president and chief executive of BCE and Bell Canada said. "Today's announcement demonstrates that we are focused on creating the financial flexibility to support our ongoing transformation and core growth drivers."

MLSE, which was valued at $8.7 billion (U.S.) last year by Forbes magazine and was said to be the world’s 10th most valuable sports conglomerate, owns a stable of properties that includes the National Hockey League’s Toronto Maple Leafs, the National Basketball Association’s Toronto Raptors, the Scotiabank Arena, OVO Athletic Centre, TFC, the Argonauts, BMO Field, and the American Hockey League’s Toronto Marlies.

“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 Tony Staffieri wrote in a statement. “MLSE continues to appreciate significantly, and together with our sports and media assets, we plan to surface more value for shareholders long-term.”

Toronto billionaire Larry Tanenbaum owns a 20 per cent interest in MLSE through his holding company Kilmer Sports Inc. after selling a 5 per cent share for $400 million to the Canadian pension fund OMERS in 2023. Rogers and BCE had the right to buy out Tanenbaum by July 2026 and Rogers is now expected to do that, a person familiar with the matter told TSN.

Rogers is also the sole owner of the Toronto Blue Jays. The company’s founder, Ted Rogers, bought the Major League Baseball franchise in 2003 for $112 million (U.S.) and paid $25 million for the Rogers Centre. After a $300 million renovation, the MLB franchise is now worth $2.1 billion, according to Forbes.

It’s possible that Rogers will spin off its sports assets into a trust owned by members of the Rogers family, several sources familiar with the matter told TSN.

New York-based Madison Square Garden Company in 2015 spun off its sports and entertainment businesses from its media business, making MSG Networks a stand-alone media company while Madison Square Garden Sports Corp. owns the New York Knicks and New York Rangers, among other teams and assets.

Any change in MLSE ownership will require approval from the various leagues and the federal Competition Bureau.

The sale comes with pro franchises selling for record amounts.

In July 2023, NFL owners approved the sale of the Washington Commanders for a record $6.05 billion from Dan Snyder to a group led by Josh Harris. Months later, in December of 2023, Mat Ishbia bought the NBA’s Phoenix Suns for $4 billion (U.S.). In April 2024, the NHL’s Arizona Coyotes were sold to Ryan and Ashley Smith for $1.2 billion (U.S.), who moved the franchise to Salt Lake City, Utah.

The deal also will add to the profile of the 55-year-old Edward Rogers, who has tended to avoid public attention, and is certain to raise questions about the future of Raptors president and vice-chairman Masai Ujiri and Maple Leafs president Brendan Shanahan with the organization.

Ujiri led the Raptors to the 2019 NBA championship after arriving in Toronto in 2013 and is among the city’s most visible sports personalities. In 2021, when MLSE was negotiating Ujiri’s contract extension, Rogers actively fought plans to keep Ujiri, arguing he was not worth the money. Ujiri’s contract is up with Raptors in June 2026.

Shanahan, who has been in charge of an NHL franchise that has floundered in the postseason over his eight years with the organization, is in his final year of a six-year contract that pays him more than $25 million, a person familiar with the matter told TSN.