All the Toronto sports franchise Infinity Stones are nearly in Rogers’ gauntlet — but one of the company’s first moves appears that it will be to sell off a piece of its newfound power.
Earlier this month, the massive communications company announced it reached a deal to purchase the remaining 25% stake of MLSE from Larry Tanenbaum’s Kilmer Sports Inc. for $4.35 billion.
It will be set to complete the full takeover — which is subject to league approvals, but expected to close later this year — that had been initiated last year, when Rogers bought Bell Communications out of its 37.5% share in the company for $4.7 billion.
With the purchase, Rogers will attain full control over the MLB’s Blue Jays, the NHL’s Maple Leafs, the NBA’s Raptors, Toronto FC of MLS, and the CFL’s Argonauts, among other minor franchises, properties and sports holdings.
However, the company will be looking to sell off a piece of that pie to recoup some cash — a move that previously had been announced by the company.
What did Rogers say about the sale?
During an analyst call on Wednesday, Rogers CFO Glenn Brandt confirmed the company’s plan.
“I’m confident that we will be able to present that this is a very premium collection of assets and there are limited opportunities for buying in,” Brandt said, per Front Office Sports. “I do not expect discounts and we will work hard to drive as strong a valuation as we can. But that the market will determine what that is.
“The exercise here is to sell a non-voting minority interest in common equity of the combined entities and to participate in the growth opportunity for that investment.”
According to the outlet, Rogers posted a 53% gain in second-quarter sports and media revenue to the tune of $851 million, which beat estimates.
However, Rogers long-term debt is nearly $25 billion and the company reported a net loss of $515 million in the most recent financial quarter, mainly due to the MLSE equity purchase.
What did Rogers say about completing MLSE purchase?
While the deal came at quite the expense, it solidified Rogers hold on sports in Toronto and across Canada.
In a release earlier this month, Rogers president and CEO Tony Staffieri called the MLSE deal “a defining moment” for the company.
“Our full ownership of MLSE brings together Canada’s premier communications company with Canada’s premier sports and entertainment organization,” Staffieri wrote. “It gives us even more opportunity to invest in championship-calibre teams, create unique experiences for customers and fans, and unlock long-term value for shareholders.”
Edward Rogers, the company’s executive chair, added: “Sports is a great unifier, it rallies us and brings us together in a truly unique way.
“Winning is everything for fans and we’re committed to investing to bring championships to Canada as a proud owner and long-term steward of these beloved teams.”
–with Lance Hornby files