The Impact of MLSE Deal on Toronto Fans as Rogers Grows its Sports Empire

Rogers Communications Inc.’s significant acquisition of rival telecom BCE Inc.’s share of Maple Leaf Sports & Entertainment could enhance fan experiences, albeit at a higher cost, according to a sports business expert.

The recently announced $4.7-billion deal will provide Rogers with a 75 percent stake in the sports conglomerate that owns teams such as the NHL’s Maple Leafs, NBA’s Raptors, CFL’s Argonauts, MLS’ Toronto FC, and AHL’s Marlies. The transaction is set to be finalized in mid-2025.

Currently, Rogers and BCE each hold a 37.5 percent stake in MLSE, with an additional fifth owned by MLSE chairman Larry Tanenbaum through Kilmer Sports Inc., his holding company.

For Rogers, which also possesses the MLB’s Toronto Blue Jays, the move is about solidifying its dominance in Toronto’s professional sports market, noted Brock University sport management professor Michael Naraine.

“Fundamentally, it comes down to economies of scale,” he added.

“Once Rogers eventually owns the majority stake, you’re going to start to see the ability to cross-sell: Buy season tickets to the Jays and the Argos. Buy season tickets to the Leafs and the Blue Jays. Buy a sponsorship for the Jays and the Raptors.”

Related Stories

Bell affirmed that it would retain its position as the official telecom sponsor of the Toronto Raptors and uphold sponsorships of the Toronto Argonauts and Toronto FC.

Additionally, the company mentioned that it had secured the right to renew Bell Media’s content rights to half of all regional Toronto Maple Leafs games and half of Toronto Raptors games through negotiations. These games will continue to be broadcast on TSN for the next 20 years.

Scotiabank analyst Maher Yaghi deemed it a mutually beneficial deal, with BCE indicating its willingness to sell MLSE while ensuring it retains its sports content sourcing.

Rogers could potentially consolidate ownership of every major Toronto sports franchise, given the provision in the MLSE ownership agreement that allows telecoms to buy out Tanenbaum by July 2026.

Yaghi speculated on the possibility of MLSE becoming publicly traded, suggesting that the organization’s value could increase following integration with the Blue Jays.

A scenario where Rogers establishes a monopoly over Toronto’s professional sports franchises might lead to changes in the fan experience at the arena, observed Naraine.

He highlighted Rogers’ commitment to upgrading fan experiences at the Rogers Centre for Blue Jays supporters and suggested a similar enhancement for Scotiabank Arena in the future.

However, Naraine cautioned that ticket prices may rise with these changes and more sponsorship deals could occur to maximize asset value.

Although there may be increased cross-marketing between the sports clubs, Concordia University sports economist Moshe Lander minimized concerns about elevated ticket prices, concessions, or memorabilia costs.

Lander argued that pricing is determined by fan willingness to pay rather than ownership, downplaying any impact Bell may have had on moderating fan treatment.

He also advised against expecting improved performances on the ice, court, or field solely due to consolidated ownership, despite Rogers’ stated plans to invest in securing more championships for Canada.

“Does Rogers want a Stanley Cup as much as the fans? I don’t think that’s necessarily the case,” Lander remarked.

“Ownership is usually not the reason for success or failure. It’s putting the right people in charge, and is that their objective when they can maximize their profits by repeated first-round flame outs? I don’t know that Rogers is necessarily going to even change that business model.”