Rogers declines comment on report of Leafs purchase

One report claims Rogers Communications is in talks to become the majority owner of almost all of Toronto's major professional sports teams, while another suggests the talks have stalled.

CTV Toronto: John Musselman on the MLSE deal

Some reports suggested Wednesday that Rogers Communications is looking to buy a majority stake in Maple Leaf Sports and Entertainment. John Musselman reports.

CTV Toronto: Are the Leafs about to be sold?

Lance Brown reports on rumours that Rogers Communications is negotiating to buy most of Toronto's sports teams.

CTV News Channel: BNN's Martin Baccardax

A correspondent with Business News Network says the possible takeover could drastically change the landscape of Canadian sports, as we would be giving control of the major sports franchises in Canada to a single media entity.

CTV News Channel: Andrew Zimbalist

A sports economist with Smith College discusses some of the advantages of the takeover, saying there is the opportunity to scale back on staff. He also discusses what will happen between Rogers and TSN in the future, if the deal goes through.

Canada AM: Howard Bloom, Sports Business News

The publisher of SportsBusinessNews.com on the benefits for Rogers and current owners, the Ontario Teachers Pension Plan, if Rogers moves ahead and buys Maple Leafs Sports and Entertainment, which include the Leafs, Raptors, FC and Marlies.

Watch: See all Videos in the Player

A A | Email This Email | Print | Comments (29) Tweet

Ted Rogers, left, President and CEO of Rogers Communication and Richard Peddie, President and CEO of Maple Leafs Sports and Entertainment pose for a photograph during a press conference on Tuesday, Sept 5, 2006 in Toronto. (Nathan Denette / The Canadian Press)

View Larger Image

ctvtoronto.ca

Date: Wed. Dec. 1 2010 10:15 PM ET

Rogers Communications said that its relationship with the owners of the Toronto Maple Leafs has not changed on Wednesday, as rumours swirl that the communication giant is in talks to purchase the hockey team and several of its Toronto counterparts.

The Toronto Star reported on Wednesday that Rogers was in negotiations to buy the Leafs as well as the NBA's Toronto Raptors, Toronto FC of Major League Soccer and the Leafs' AHL affiliate Toronto Marlies. The reported deal would be worth $1.3 billion.

However, the Globe and Mail reported Wednesday night that talks had stalled this summer, and the teams were not being shopped around -- at least for now.

Rogers Communications Inc. already owns the Toronto Blue Jays and would be poised to build one of the most powerful sports enterprises in North America.

The company also owns the Sportsnet specialty cable channels and has been building an integrated marketing strategy using its various businesses to cross-promote one another.

"We have a successful, long standing sponsorship and broadcasting arrangement with MLSE," Rogers said in a statement Wednesday.

"Sports is an important part of Rogers and we're always in discussions with companies to enhance the sports content we offer our customers."

The statement also said that Rogers would not comment on rumours or speculation about a potential deal.

In the reported deal, Rogers would purchase the Ontario Teachers' Pension Plan's majority stake in Maple Leafs Sports and Entertainment. MLSE also owns the Leafs and Raptors TV stations.

The deal would not include MLSE's real estate holdings, which includes the Air Canada Centre in downtown Toronto.

"I know it's real," an anonymous top sports industry executive told the Star. "I've heard it from Rogers at a high executive level and from MLSE at (the highest) level."

A spokesperson with the Ontario Teachers' Pension Plan declined comment.

Ontario Teachers' Pension Plan holds about two-thirds ownership in MLSE, while business magnate Larry Tanenbaum's Kilmer Sports controls the next-largest slice with 20 per cent.

Howard Bloom, the publisher of Sports Business News, described the reported negotiation as the biggest Canadian sports business story of the year.

"It is a story that if you had connected the dots and followed for a long time makes complete sense," Howard Bloom from Sports Business News told CTV's Canada AM on Wednesday.

"At the end of the day the Ontario Teachers' Pension Fund has a responsibility to their stakeholders to maximize the return on their investment."

Rogers Communications owns Canada largest wireless company as well as the Rogers Centre, the home of their Blue Jays.

The Maple Leafs have not won the Stanley Cup since 1967 and have struggled in recent years to even make the playoffs.

Despite their on-ice troubles, the franchise has been ranked the league's most valuable team for four years in a row. In 2009, Forbes values the franchise at $470 million.

The Raptors and the four-year-old Toronto FC franchise have similarly turned profits while struggling to field a winning product.

"All the best for Rogers but you have to wonder how many non-championship winning teams one company is allowed to own," BNN's Michael Kane joked on CTV's Canada AM on Wednesday.

Existing agreements mean the Raptors and Leafs games would continue to be broadcast by their current media partners. But Bloom says Rogers would assume control when those agreements expire and likely look to build a broadcast powerhouse like New York's YES Network, which airs Yankee games as well as those of other sports teams around the region.

"Yankees Entertainment Sports generates hundreds of millions of dollars every year in revenues for the Yankees because they control most of the content," Bloom said.

The report comes just one day after Richard Peddie announced he would retire as president and CEO of MLSE at the end of next year.

With files from The Canadian Press

Comments are now closed for this story

Daniel From Toronto
said
0 0

These comments sound like they are coming from Hab fans jeez. Rogers do us a favour and please dont even procede with this, we have enough dealing with your ridiculous prices and stipulations; thats all we need is to have to switch cable providers to watch are beloved sports teams.

Logan
said
0 0

If Rogers purchases the team, the Maple Leafs will never make the playoffs again. They'll be just as sloppy as the Toronto Blue Jays because they don't know how to hire management and don't understand that you have to spend money to make money/build championship teams.

Joe
said
0 0

@Andrew - Stratford: Don't comment on financials if you don't understand what they mean. Rogers' Q3 NET INCOME (the figure that really matters) was $1.2-billion, and to assume that they would be able to simply throw all of this towards buying a sports team without thinking twice is idiotic at best.

My comment will probably get blocked because it's not "friendly" enough, but seriously, if you're going to post, at least make it semi-intelligent.

john
said
0 0

Rogers wants to do the same thing they did to the Blue Jays fans, Take games and put them on the rogers subscriber only channels to get you to switch to their cable TV service. They will do the same thing to Leafs fans to try and get you to switch to rogers. Leafs fans will now miss seeing selected games through out the season, more negative marketing campaign by rogers.

Jimmy TT
said
0 0

Remember, Rogers are the company that won't let you buy a ticket to a Bills exhibition game in the Rogers Centre for less than $75. I see more of the same in the Leafs future: gouging the fans, crappy hockey.

RZ
said
0 0

Why does this move not surprise me? But anyway, I think Rogers should abandon that idea and instead, use the money to reduce customers' bills. Especially wireless.

kenl77
said
0 0

As a retired teacher, I beg the pension board to sell the Laughs and Lizards to anyone willing to pay 3 or 4 times fair value. These teams can hardly get any worse than they are today. After years of draining profits from pathetic Toronto fans, I'm embarrassed to be connected in any way to these franchises that specialize in abusing the dreams of children and child-like adults.

Doug # BC
said
0 0

I have some of the same thoughts that were expressed by "B.Kelley". But the question I had about that is,if we only want to watch games that are "free",are we real "consumers",or just looky loos? I'm also a bit taken aback by people who think Rogers should lower their rates,rather than buy sports teams. That's not unreasonable,but it assumes that the teams will lose money.If the teams actually generate a profit,the whole idea falls apart.If these teams actually do make money,there will be less pressure on Rogers to raise cable rates to remain a financially viable corporation.
And finally,the best way to ensure a sports team survives in NOT by winnning. It's by generating a profit. While I concede that winning helps to generate profits,winning is not the only skunk in the profit bag,I think it's fair to say that many winning teams lose a lot of money.And the Maple Laffs look like proof a losing team can make money. But all in all,I am glad that some of those "evil" corporations get involved.They put up a lot of money so we can be entertained.And better they do it than we either lose the teams,or use tax dollars to keep them going.Unlesss,of course, those who are doing all the whining are willing to take on some of the risk by buying shares for themselves. I would not hold my breath waiting for Canadians to do this.We are to risk averse to take on the risk,but cry foul when people who do make a profit.And we all know that" profit" is a dirty word in this once great nation.

Narin
said
0 0

What a mess up with Rogers to manage both telecom and sport! Anyway, under the Leafs current and past 30 years management didn't do anything good so maybe Rogers can do something. I have a hard time to make people (non Hockey lovers) believe that the Leafs had won the most Stanley Cup after the Montreal Canadiens. They replied with WHAT!

Losers!
said
0 0

Hey Al- 50.00 bucks is about right! Why would anyone want to associate themselves with a team of losers! Outside of Toronto the leafs are known as the Toronto Maple Laffs! But don't tell that to Toronto Fans- they still think they are the centre of the Hockey universe. Hey Rogers, if it were up to me, you can have them for free!

manner
said
0 0

Thank you God almighty! Finally the Leafs will be under an ownership structure that actually might vault them into the playoffs and build a winning team. The meddling of Leafs Sports and Entertainment has been too much, as well as the absentee ownership of the Teacher's Fund. Build a winning team!!!!!

Jason Daniel Baker, Toronto
said
0 0

Whomever owns the Leafs can expect to own a franchise that will lose and lose and lose and lose some more on the ice while turning huge profits at the gate. That is the great thing about owning the Leafs; You can make money hand over fist and never have to worry about the product you put on the ice. Fans in Toronto won't support a losing football team or a losing baseball team or a losing soccer team or a losing basketball team. But they will support a losing a hockey team, pay through the nose for the privilege and still feel lucky no matter what the Leafs do or don't do on the ice.

B. Kelley, Ontario
said
0 0

Something is very wrong when an organization such as Rogers can own professional sports teams as well as the TV network (SportsNet) that carries their games and one of the major distribution systems selling the programming service to consumers. Last summer, we saw how Rogers was able to use this near-monopoly to create a new optional sports channel (SportsNet 1) and move carriage of many of the Blue Jays games there. The battle that followed with satellite providers meant that a great many fans were unable to watch most of the games in the last 2 months of the season. For next year, we'll all be forced to buy that channel or listen to the game on radio (the radio network is also owned by Rogers). So, once again, the consumer loses out to corporate greed. Look for the same thing to happen with coverage of Leaf games within a year or two.

karl
said
0 0

I don't think we should be worried about cable bills increasing because of this purchase. All of the teams are profitable because despite all 3 being poor teams, fans keep buying tickets. This will always be the case with the leafs, its hockey and Canadians love hockey. As for the other two, I am sure the beer sales were down at TFC this year, they sold out but many of the seats were empty on game day. If TFC does not make the playoffs this year that will really hurt the bottom line going forward. The same applies to the Raptors, although they still have those corporate box dollars to help their finances.MLSE are a sporting disaster, that is quite obvious. They ran a very successful business for which they deserve credit but they had no vision as a sporting organization, maybe achieving both in this city is not possible. The question is, do Rogers have the ambition and vision to build winning teams and still make money? Based on the Blue Jays it looks like a dismal future for Toronto sports fans.

Maritime maplebud
said
0 0

As a leaf fan I'd welcome this change. They couldn't do any worse than MLSE! Torontoians need to give their heads a shake. They fill the ACC to support losing Leaf and Raptor teams and only put 10-15,000 in the stands to see the Blue Jays which is the best professional team Toronto has.

Andrew - Stratford
said
0 0

For Rogers, 1.4 billion is chump change, they have made 3.5 billion in the first 3 quarters of 2010. They will always make tons money on the leafs as the salary cap controls how much they spend on the team, The Toronto FC more than pays for itself as well, but maybe they will be more willing to pay luxury tax for the Raptors, and start getting closer to 100M payroll for the Jays. Ultimately I would like to see Rogers be dedicated to winning championships and not focused on the profits because with an annual profit of 4 billion I think they can afford to have the sports teams be break even or turn a deficit.

Jays Fan Matty
said
0 0

Anyone who watched the Jays this year knows that they we're far more exciting to watch this season than they have been in years. They're on the up-and-up with their new GM, and if things go well over the next few seasons they'll eventually be playoff bound, and then all of a sudden all of the bandwagon TO fans will come flowing out of the closet and Rogers will make gobs of money hand over fist. If this deals means more financial strength for the Jays sign me up. Go Jays Go!

Scott ON
said
0 0

whine whine whine... All providers post increases every year. Get over it people

Al
said
0 0

I offered $50.00 bucks for both teams.

Munro - Brampton
said
0 0

This is one of the reasons I am not a customer of Rogers any more. I canceled my TV/Internet with them a year ago.Every spring they increasce my bill and now they are going to buy a pro sport's team !. The heck with Rogers.

NOT Toronto centric
said
0 0

Even the Leafs owners have more sense than the fans who support this blue and white team. Sad to think peoples over charged wireless bills are going to fund this kind of non sense. I know Ottawa Sens fans will be switching to WIND mobile and abandoning their ROGERS wireless provider.

KB in GTA
said
0 0

We've see how successful the Blue Jays have been since the purchase by Rogers from Interbrew... now I would suggest the next time the Leafs win the cup with Rogers as the owners could be in 2167 when I'm reduced to dust...

G Browning
said
0 0

Monopolies are always bad for consumers. 'Nuff said.

Kiss it goodbye Martha!
said
0 0

Oh great we'll be getting daily email reminding us of how the "Leafs Suck" !!

Alan
said
0 0

Just shows that if you can't buy Disney World you can still settle for three Mickey Mouse outfits.
Uh, sorry Leafs, I couldn't resist that old chestnut. I still, and always will, bleed Blue and White. I was in the seats for the last "Big One" back in 1967. Too long ago....
Go Leafs Go.

Gord
said
0 0

And so the proposed deal does not include that cash box, the ACC?

Steve in Toronto
said
0 0

Despite the numerous comments that will say how terrible Rogers is, and how they are only out to make money (what a concept), this would be great for Toronto and the Leafs. Rogers could make tonnes of money through Sportsnet, its cable network and in wireless - enough money so that they wouldn't have to squeeze every last penny out of the Leafs. In fact, Rogers could lose money at the Leafs and build a winner as they would more than make up for it in the frenzied state a winning Leafs team would create. And by the way, which is by far the best run sports team in Toronto ---- the Blue Jays.

Dan Stratford
said
0 0

I'm thinking maybe I'll cancel all my Rogers subscriptions if they buy the Leafs. Rate hikes will surely rise in order to pay for the sale. Which will end up costing more? Leaf tickets or monthly cable bills?

Ian Ottawa
said
0 0

Maybe they can sort the Joke the Toronto Make Believes have become.

Pick your location

Top Stories -

News Sections

News Programs

Features

Browse: