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Report: Rogers telecom in talks to buy Raptors

Posted on: December 1, 2010 8:56 am
Edited on: August 14, 2011 9:10 pm
 
Rogers is in talks to purchase a majority stake in Maple Leaf Sports and Entertainment from the Ontario Teachers' Pension Plan, giving thetoronto-raptors telecommunications giant control of the NHL's Toronto Maple Leafs and NBA's Toronto Raptors. Posted by Ben Golliver Fair warning: this post is about Canada. It's also about a potential $1 billion professional sports transaction, so you should keep reading. Rogers is a giant company in Canada, a wireless, phone, television and internet provider akin to Comcast or AT&T in the United States. The company owns Major League Baseball's Toronto Blue Jays and, according to the Toronto Star, is making a major, major offer to essentially monopolize professional sports in Toronto by buying a majority stake in the National Hockey League's Toronto Maple Leafs, the National Basketball Association's Toronto Raptors and Major League Soccer's Toronto FC.
In what would be the biggest transaction in Canadian sport history, Rogers is in talks to buy the Toronto Maple Leafs in a deal worth more than $1 billion, sources said Tuesday.
The sale would include the Raptors, Toronto FC soccer club and the Marlies, the Maple Leafs’ minor league hockey team.
Buying a majority stake in Maple Leafs Sports and Entertainment from the Ontario Teachers’ Pension Plan would transform Rogers, which already owns the Toronto Blue Jays, into one of the most powerful sports enterprises in North America.

The Star also reports the deal would include the television stations that broadcast both the Maple Leafs and the Raptors and could potentially lead to the formation of a regional sports television network.

What are the first-glance implications of this deal? 

For starters, it would give the Raptors a steady, wealthy ownership group invested in keeping the Raptors in Toronto. While the organization has one of the league's most dedicated fanbases and rarely comes up in the discussion of possible franchise relocation anymore, that's a nice peace of mind. Of course, the consolidation and resulting lack of competition could come with a price tag attached, in the form of higher ticket prices and/or content delivery charges.

More importantly for the NBA as a whole, though, is the reported $1.3 billion offer, which is a huge number. Any way you divvy it up between the franchises included in that purchase price, the figure represents a strong valuation for the Raptors. For comparison, Forbes valued the Raptors at $386 million dollars in December 2009. Forbes also ranked the Maple Leafs as the most valuable NHL franchise in Nov. 2009, at $470 million. In other words, Rogers isn't getting a group discount by buying the entire lot, and is almost certainly paying a significant premium above Forbes' valuation for the Raptors. 

This is an important point, because it serves as a reflection of the perceived economic strength of the NBA. In ongoing labor negotiations, the owners have argued that the league needs to retool its broken business model. It's a bit harder to make that argument when a major corporate buyer is lining up to pay huge money simply for the right to participate in that broken business model.

Category: NBA
Comments

Since: May 23, 2008
Posted on: December 3, 2010 5:24 pm
 

Report: Rogers telecom in talks to buy Raptors

Sorry man, but you're wrong about that one.  Scotty Bowman turned down the Leafs GM position years ago for a couple of reasons.  But one reason was the fact they wouldn't agree to give him 100 percent control when it comes to trades, salaries, etc.   It's also a proven fact that NOBODY makes a decision without presenting it to the board first....   they sure did run the Leafs into the ground

You're dead wrong. Burke and Colangelo have free reign. Get a clue!


SharonsSailor
Since: Mar 5, 2010
Posted on: December 2, 2010 8:38 am
This comment has been removed.

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Since: Dec 1, 2010
Posted on: December 1, 2010 11:33 pm
 

Report: Rogers telecom in talks to buy Raptors

This is the LAST time I read an article written by an American about sports in Canada.  First of all, the MLSE is valued over at a $1.5 billion, not just $1 billion that you mention. 

Secondly, MLSE is partially owned by the Ontario Teachers Pension Plan, which is a fund worth $100 billion dollars.  They are by far the most wealthiest sports owner in all of sports in the world.  I think that's pretty stable ownership. 



Since: Dec 1, 2010
Posted on: December 1, 2010 9:24 pm
 

Report: Rogers telecom in talks to buy Raptors

Warning this comment is written by a Canadian so please disregard.
What kind of journalist or so called journalist prefaces a story by giving a warning about the country it's written about?  I was not going to read the article but I was so pi$$ed I did read on.  Ben Golliver should get his a$$ out of the sand and take the story for what it is.  A major communications giant is looking to buy the most valuable team in the NHL.  Now I must get back to.  Gotta run my dog sled is double parked.



Since: Jun 25, 2009
Posted on: December 1, 2010 8:45 pm
 

Report: Rogers telecom in talks to buy Raptors

BTW, can people stop saying the Teacher's pension Fund has run the Leafs and Raps into the ground. I hate MLSEL because they seem to make poor decisions. But they always have the money if they need it. The management moves have nothing to do with the Teacher's pension. BC and BB are 2 of the highest paid GMs in their sports and the teams are always to the cap.
Sorry man, but you're wrong about that one.  Scotty Bowman turned down the Leafs GM position years ago for a couple of reasons.  But one reason was the fact they wouldn't agree to give him 100 percent control when it comes to trades, salaries, etc.   It's also a proven fact that NOBODY makes a decision without presenting it to the board first....   they sure did run the Leafs into the ground.


fsdfcdscfdfcdss
Since: Dec 1, 2010
Posted on: December 1, 2010 6:28 pm
This comment has been removed.

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Since: Jan 22, 2007
Posted on: December 1, 2010 4:38 pm
 

Report: Rogers telecom in talks to buy Raptors

All I know is that every time I've talked to a Toronto sports fan all they've done is bitch about MLSE, so this is probably a good thing.  The only one of these leagues I really follow closely as of late is MLS (yeah, laugh it up) and I know they run Toronto FC just about as badly as a soccer team that actually has some fans could be run.



Since: Sep 17, 2010
Posted on: December 1, 2010 4:14 pm
 

Report: Rogers telecom in talks to buy Raptors

Funny how the title of the Article contains the Raptors but this deal is all about the Maple Leafs...MLSE is throwing the Raptors and Toronto FC in as add-ons to the deal.



Since: May 23, 2008
Posted on: December 1, 2010 4:03 pm
 

Report: Rogers telecom in talks to buy Raptors

Uh, this guy does know that Rogers isn't liningup to get the Raps right? They are lining up to get the Leafs and are paying a premium to do so. The Teacher's Pension fund is NOT going to give the Leafs away for fair market value. If they're selling they are getting a ransom. BTW, can people stop saying the Teacher's pension Fund has run the Leafs and Raps into the ground. I hate MLSEL because they seem to make poor decisions. But they always have the money if they need it. The management moves have nothing to do with the Teacher's pension. BC and BB are 2 of the highest paid GMs in their sports and the teams are always to the cap.



Since: Jan 14, 2009
Posted on: December 1, 2010 2:58 pm
 

Report: Rogers telecom in talks to buy Raptors

Fair warning: this post is about Canada

What the F U C K does that mean?  I stopped reading...


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