Rogers acquires BCE’s stake in MLSE for $4.7 billion

BCE said it will use the proceeds to reduce debt levels and support its transformation to a tech company.

Bell Canada Enterprises (BCE) has sold its 37.5% ownership stake in Maple Leafs Sports and Entertainment (MLSE) to Rogers Communications for $4.7 billion.

The deal, announced Wednesday (Sept. 18), is expected to close in 2025 and will see Rogers become the majority owner of MLSE. It is subject to approval from the sports leagues under MLSE, which includes the Toronto Maple Leafs and the Toronto Raptors.

Prior to the deal, the two companies jointly held a 75% stake in MLSE. Of the remaining stake, 20% is held by MLSE chairman Larry Tanenbaum’s Kilmer Sports Ventures with 5% indirectly owned by the Ontario Municipal Employees Retirement System (OMERS).

In a news release, BCE said it intends to use the proceeds of the sale to reduce debt levels and to support its transformation from a telecommunications company to a tech company.

As part of the deal, Bell Media has secured access to content rights for the Toronto Maple Leafs and Toronto Raptors on TSN for 20 years. Rogers and Bell Media will continue to split content rights for the Toronto Maple Leafs regional games and Toronto Raptors games, for which MLSE controls the rights. BCE will also remain the official telecom sponsor of the Toronto Raptors.

Bell Media will also continue to broadcast the Toronto Argonauts and Toronto FC on TSN through independent agreements with the teams’ respective leagues, with BCE also maintaining its sponsorship of the teams.

“MLSE is one of the most prestigious sports and entertainment organizations in the world and we’re proud to expand our ownership of these coveted sports teams,” said Rogers president and CEO Tony Staffieri in a statement.

“We are proud of our time as co-owners of these iconic sports teams, and through this agreement have ensured that fans can count on Bell’s continued support of their teams,” said BCE president and CEO Mirko Bibic. “Today’s announcement demonstrates that we are focused on creating the financial flexibility to support our ongoing transformation and core growth drivers.”

Image courtesy of BCE; picture by Shan Qiao