Rogers Communications Inc.’s recent agreement to acquire BCE Inc.’s stake in Maple Leaf Sports & Entertainment could enhance the fan experience, but may come at a higher cost, according to a sports business expert.
The $4.7 billion deal, set to finalize in mid-2025, will give Rogers a 75 percent ownership of the sports conglomerate that includes the Maple Leafs, Raptors, Argonauts, Toronto FC, and Marlies. Currently, both Rogers and BCE hold a 37.5 percent stake in MLSE, with the remaining ownership belonging to MLSE chairman Larry Tanenbaum’s Kilmer Sports Inc.
Michael Naraine, a sport management professor at Brock University, believes that Rogers is aiming to solidify its presence in Toronto’s professional sports market through this acquisition.
Naraine stated, “Fundamentally, it comes down to economies of scale. Once Rogers owns the majority stake, we can expect to see cross-selling opportunities such as joint season ticket packages and sponsorship deals across various sports teams.”
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Bell has confirmed that it will retain its sponsorship ties with the Raptors, Argonauts, and Toronto FC. Additionally, Bell Media secured rights to broadcast half of the regional Maple Leafs and Raptors games on TSN for the next two decades.
Analyst Maher Yaghi from Scotiabank views the deal positively for both companies, emphasizing BCE’s focus on maintaining content sourcing for sports while Rogers gains the opportunity to bring multiple Toronto sports franchises under its umbrella.
Yaghi suggested potential future scenarios, including the integration of the Blue Jays into MLSE and the prospect of MLSE going public at a higher valuation.
Naraine cautioned that a monopoly over Toronto’s professional sports teams by Rogers could lead to increased ticket prices and more sponsorship agreements, impacting the overall fan experience.
Contrary to concerns about rising costs, Moshe Lander, a sports economist from Concordia University, believes that pricing remains driven by fan demand rather than ownership changes. He also downplayed the notion that consolidated ownership would directly translate to on-field success for the teams.
While Rogers has expressed intentions to invest in championship success, Lander questioned whether this aligns with the company’s profit-driven motives and emphasized the importance of skilled leadership in achieving sporting achievements.
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