Rogers Communications solidified itself as a sports ownership powerhouse Wednesday when it finalized the purchase of BCE’s 37.5% stake in Maple Leaf Sports and Entertainment, the parent of three franchises from major North American leagues.
In their first interview since the deal closed at CA$4.7 billion ($3.45 billion based on current exchange rates), Rogers CEO Tony Staffieri and executive chairman Edward Rogers broke down the advantages of bumping the company’s stake in MLSE to 75% and provided a roadmap on what’s next for its sports properties, which now include control of the Toronto Raptors, Toronto Maple Leafs and Toronto FC in addition to the Toronto Blue Jays and Toronto Argonauts.
“We’ve held significant [sports] assets with the original 37.5% in MLSE, the Jays, Sportsnet and other media assets, and we get zero credit for that today in our share valuation,” Staffieri said in a phone interview. “The thesis is to consolidate all those assets together and surface that value for Rogers’ shareholders.”
Rogers now controls teams in four of the five biggest North American sports leagues; the first team it acquired was the MLB’s Blue Jays in 2000. It also owns Canada’s biggest sports media brand, Sportsnet.
Rogers’ stock has traded at a discount by most metrics to its Canadian telecom rivals BCE and Telus, but it has closed the gap over the last month with shares up 19% versus a 2.6% rise for BCE and a 1.6% decline for Telus. Rogers’ shares jumped 5.1% yesterday when the MLSE deal closed (the deal was agreed upon last September).
From an accounting standpoint, MLSE will now be consolidated in Rogers financial results, but investors want to know how those assets can be monetized.
“There are a number of alternatives available to us,” Staffieri said. “Whether it’s private investors, some type of IPO or some type of spin-out.”
Every major sports league has opened its doors to institutional investment as sports team valuations have skyrocketed. Since 2021, the average NHL team value has increased 91%; in the NBA, the average team value is up 78%; and NFL teams are up 69%. MLB lags behind at 28% as it sorts through a changing landscape with regional sports networks.
Rogers bought 80% of the Blue Jays at a $140 million valuation, and it bought the other 20% four years later. In 2012, rivals Rogers and BCE teamed up to purchase a combined 75% of MLSE from the Ontario Teachers’ Pension Plan in a deal that valued MLSE at roughly $1.7 billion, including debt. The Jays and three teams that are part of MLSE are now worth a total of $11.4 billion, per Sportico’s latest team valuations.
“The move into sports a long, long time ago by Rogers made them kind of initial visionaries in terms of leveraging sports teams,” Jérome Dubreuil, a Desjardins equity analyst, said in a phone interview.
Beyond the games, sports teams are monetizing their stadiums and arenas more than ever by selling premium seating and hosting concerts and other events. Rogers put on six Taylor Swift shows at Rogers Centre last year, and their 2025 calendar includes Billy Joel, Metallica, Morgan Wallen, Post Malone and The Weeknd. Scotiabank Arena, where the Leafs and Raptors play, ranked 10th in Billboard’s 2024 look at the world’s highest-grossing arenas with $121.4 million from 79 shows and 1.1 million people.
Edward Rogers and Staffieri both expect that the company will exercise its 2026 option to purchase the remaining 25% of MLSE owned by Larry Tanenbaum via his Kilmer Sports Ventures. They would not disclose how those assets will be valued, but they confirmed it’s included in the original purchase agreement. “It is well defined, and we do anticipate it to be a smooth and productive process,” Rogers said.
He says he’s bullish on sports and sees “tremendous opportunity” in the globalization of the leagues. And with full control of MLSE, Edward Rogers says they are looking for ways to integrate its sports business into the core wireless one.
“I think there’s definitely the ability to work these two businesses together to drive a better fan experience, a lower [cost of acquisition] and ultimately less churn and more loyalty to the Rogers brand,” Rogers said. “It has enormous upside in our business, if you can change churn when you’ve got 16 million customer relationships.”
Staffieri says the company’s balance sheet was fortified by a recent structured equity deal that raised $5.2 billion from Blackstone, which gives them time to figure out what’s the best recourse to unlock value from its sports portfolio.
“We’re not in a rush to do anything,” Staffieri said. “We’ll continue to look at the alternatives … think about which options and the sequencing of them is something that we’re considering, as well.”