Rogers Communications is set to expand its influence in Canadian sports with a C$4.7 billion ($3.46 billion USD) acquisition of BCE's minority stake in Maple Leaf Sports & Entertainment (MLSE). The deal, announced on Wednesday, will see Rogers acquire BCE's 37.5% stake in the company, which owns major North American sports franchises including the Toronto Maple Leafs, Toronto Raptors, and Toronto FC.
Rogers already holds a 37.5% stake in MLSE and, with this acquisition, will increase its ownership to 75%. The remaining 25% is owned by Canadian businessman Lawrence Tanenbaum through his company Kilmer Sports. The transaction is expected to be financed with the help of private investors and is not anticipated to impact Rogers' debt levels.
"We're passionate about sports and winning," said Rogers Executive Chair Edward Rogers, emphasising the company's long-standing commitment to the Canadian sports landscape. Rogers also owns the Toronto Blue Jays, further solidifying its presence in the sports industry.
Despite selling its stake, BCE will retain a significant presence in Canadian sports. As part of the deal, BCE has secured broadcasting rights for the Toronto Maple Leafs and Toronto Raptors on its TSN channel for the next 20 years. Additionally, BCE, through its Bell brand, will remain the official telecom sponsor of the Toronto Raptors and maintain its sponsorship of the Toronto Argonauts and Toronto FC.
BCE plans to use the proceeds from the sale to reduce debt and continue its transformation from a telecom company to a more technology-focused business. The transaction is expected to close in mid-2025.