TORONTO – One sports business expert thinks Rogers Communications Inc.‘s landmark deal to acquire rival telecom BCE Inc.‘s 37.5 per cent share of Maple Leaf Sports & Entertainment could lead to better, but pricier, fan experiences.
Brock University sport management professor Michael Naraine says the $4.7 billion deal, which gives Rogers a 75 per cent stake in the sports conglomerate, is all about consolidating its dominance in Toronto’s professional sports market.
The NHL’s Maple Leafs, NBA’s Raptors, CFL’s Argonauts, MLS’ Toronto FC and AHL’s Marlies are under the MLSE umbrella, of which a 20 per cent stake is still owned by Larry Tanenbaum through his holding company Kilmer Sports Inc.
With Rogers also owning the MLB’s Toronto Blue Jays, Naraine says the company will have more opportunities to cross-sell tickets and sponsorships of its sports brands upon closure of the MLSE deal, which is expected in mid-2025.
He also says Rogers has shown a commitment to bolstering fan experiences with the Blue Jays such as through the recent Rogers Centre renovations and may wish to replicate that at Scotiabank Arena down the line.
Rogers and Bell closed their deal to acquire an ownership stake in MLSE in August 2012 after announcing the purchase from Ontario Teachers’ Pension Plan in December 2011.
This report by The Canadian Press was first published Sept. 18, 2024.
Companies in this story: (TSX:RCI.B, TSX:BCE)
