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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: Aug 18, 2006
Posted on: December 1, 2010 2:51 pm
 

Report: Rogers telecom in talks to buy Raptors

@IJD: a decent journalist would have identified Rogers as the majority of the readership is not from Canada.  Looks like they edited the story to include this detail.  Not that I ever expect anything close to journalism anymore - especially on the net



Since: Mar 7, 2009
Posted on: December 1, 2010 2:48 pm
 

Report: Rogers telecom in talks to buy Raptors

I can tell most of the posts have no clue of the reason the Leafs and Raptors are in the state they are at currently.  The Teachers pension that own the rights to Maple Leaf Sport and Entertainment have run the team into the ground.  There is no burning desire to win or even maintain respect in the league by the product on the ice.  These guys are strictly for the money, now I know all owners want to make money.  But they also have a desire to push for the best possible product to bring a championship to their city and legacy.  This is truly great news for any true BLUE fan, they may make their way out of this mess they are currently in and get an ownership group with a purpose for the two franchises and get them back into a winning tradition and respectability.  Go Rogers save the Leafs and Raptors from the clutches of evil here in Canada.



Since: Jan 16, 2007
Posted on: December 1, 2010 2:08 pm
 

Report: Rogers telecom in talks to buy Raptors

Idiot.  Why even bother.



Since: Sep 12, 2006
Posted on: December 1, 2010 1:25 pm
 

Report: Rogers telecom in talks to buy Raptors

Minor correction redwings1969 - Ted Rogers died in December 2008.



Since: Sep 12, 2006
Posted on: December 1, 2010 1:21 pm
 

Report: Rogers telecom in talks to buy Raptors

TSN doesn't show many of the Maple Leaf games already RTG, so that wouldn't be a huge hit to them. Sportsnet is big on the Leafs, while TSN goes for the NHL overall (which quite frankly is likely a better approach anyway, since it seems that most people outside of Southwestern Ontario don't care for the Leafs).  The biggest programming loss for TSN (and TSN2) would be the Raptors, as they show a good chunk of their games between the two stations.  In this case though, I'm sure TSN would opt for picking up more ESPN programming, which may work out well for them in the end.

Rogers can do what it wants in this situation, because I like how they've kept the Blue Jays somewhat relevant in a tough AL East division by supplying the money needed (they don't throw it around like the Yankees/Red Sox, but they ain't cheap either).  The one thing that annoys me is that this likely means Sportsnet One is going to start showing more of these games, and I refuse to pay extra money to Rogers to get access to that channel.  Why can't it just be included in the regular Digital HD package like TSN2 or the NFL Network?

For any Americans confused by these references to TSN and Sportsnet, here's you American comparison:

TSN = ESPN (they show a ton of ESPN content, and their morning show is called Sportscentre)
Sportsnet = Fox Sports (not as close of an affiliation as TSN/ESPN)




Since: Dec 30, 2007
Posted on: December 1, 2010 11:46 am
 

Report: Rogers telecom in talks to buy Raptors

To make it easier................Rogers is like the Verizon of Canada. Bam, simply put without offending anyone.



Since: Nov 3, 2006
Posted on: December 1, 2010 10:37 am
 

Report: Rogers telecom in talks to buy Raptors

If I was TSN I would not be happy about this deal potentially being completed.  Rogers, who owns Rogers Sportsnet, broadcast every single Jays game on either Sportsnet or Sportsnet One.  If they get all the Toronto sports team they are going to have a lot of content to play on their channels, and TSN may find itself showing more Darts and Poker.



Since: Jun 25, 2009
Posted on: December 1, 2010 10:30 am
 

Report: Rogers telecom in talks to buy Raptors

Hey great story, but um, who the f*ck is Rogers?
That's the difference between Canadians and most americans.  For the most part we read and learn a little about whats going on outside of our country and not just things in our back yard.  Americans like you have no clue.... it's like you live in a little bubble on need to know basis....  but here's some info for ya.. try google next time, it's pretty good.

Rogers Communications grossed just over 3 billion dollars in THE SECOND QUARTER OF 2010 ALONE....  they gross over 10 billion dollars per year.  Ted Rogers, who died in 2007 according to Forbes ( ever heard of them?) died with a net worth of about 7 billion dollars.. not bad.

And especially not bad in a country that although is larger then the U.S in space has only about 30 million people in it.... and oh yeah, tons of competition for what he does as well...... pretty good I must say.



Since: Dec 1, 2010
Posted on: December 1, 2010 10:24 am
 

Report: Rogers telecom in talks to buy Raptors

@ Don't Argue:
Try the internet - google works for learning stuff like that.  Just a friendly suggestion... unless you were being clever, in which case that wasn't.  Contribute more than being or acting ignorant.

@Eers: Don't hold people's hands when they ask questions they should know how to get the answers to.  Just do this: google.com
otherwise you look like a know-it-all and this site already has plenty of those.




Since: Sep 17, 2006
Posted on: December 1, 2010 10:11 am
 

Report: Rogers telecom in talks to buy Raptors

'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.'

Foot in mouth


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