Here We Go Again

It was Dec. 1, 2010 when the story first broke in The Star that Rogers Communications was going to buy a majority share in Maple Leaf Sports and Entertainment.

Everyone immediately downplayed the story, and when it didn't immediately happen for months the tale went in many different directions, even including Wayne Gretzky at one point, and has now come full circle.

It's Rogers again, and maybe now for real. But not alone.

The two companies, Rogers and BCE, that in the last few months couldn't come to a relatively simple agreement on Olympic coverage after 2012, may join forces and in one sensational, unconventional move buy the 79 per cent stake in MLSE currently controlled by the Ontario Teachers Pension Fund.

Yes, the same pension fund that said just a matter of days ago it had decided to take the Leafs, Raptors, Toronto FC, the Air Canada Centre, Leafs TV, Raptors TV and the rest of the giant company off the market.

At any rate, multiple media reports late Thursday night had Rogers and BCE, which own Sportsnet and TSN, respectively, set to jointly buy out the pension fund in a $1.3-$1.4 billion deal that would, if it comes together, drastically alter the local sports landscape.

Rogers would own the Blue Jays, the Rogers Centre (home of the Jays and CFL Argonauts) and a portion of the Leafs, Raptors and the ACC. In other words, Rogers would have a stake (nobody's saying what the percentages are yet) in every major sports franchise in the city plus it's two largest sports and entertainment venues.

That's unprecedented. Some will argue it's not even healthy in a town where the Argos are the only team to have won a championship in the last 18 years. Or even played for one.

Under this reported deal, BCE would have a piece of the Leafs, Raps and the ACC, and the biggest result of all of this could be the formation of a new entity, some kind of new sports broadcast network for southern Ontario. Or not. Maybe this deal blocks that from ever happening. Right now, the Jays are exclusive to Rogers, while both TSN and Sportsnet carry Leaf and Raptor games. TSN has exclusive rights to the CFL, while Rogers has an agreement with the NFL's Buffalo Bills to play regular season games in Toronto.

How, exactly, Rogers and BCE would split this up will be fascinating. Larry Tanenbaum, it's being reported, would maintain his 20 per cent share, and likely remain chairman. But the inability of Rogers and Bell to solve that puzzle of sharing MLSE and all its broadcast/internet tentacles was, according to a Globe and Mail report, apparently part of what killed their $1.4 billion offer for MLSE in late November. The two have worked together as partners in the Olympic consortium that broadcast the 2010 Vancouver Olympics and will also broadcast next summer's Summer Olympics in London.

Several major rights deals are coming up in the next few years, and with Rogers and Bell together on this deal, if it happens, the bidding for those rights - NHL, CFL - becomes fascinating. As it stands, nothing would change on local hockey rights until 2015, and nothing on national hockey rights until 2014. There are already suggestions that along with BCE having to sell it's 18 per cent share in the Montreal Canadiens, part of this deal might see the two companies form some kind of independent company to maintain an arms length relationship between the teams and the broadcasters.

It always made sense to many that one of these broadcast giants would bid on MLSE because they could value the programming element like no other entity.

Now it may happen. Or more rumours and speculation may happen. Who knows, maybe more Gretzky. Not the worst idea, and apparently he's in town. Totally coincidental, surely.

But this proposed (rumoured? imminent?) deal would be like none other in pro sports. It's outlandish. Utterly sensational. Certainly better, one would imagine, than having some U.S. equity fund buy MLSE. People seem reasonably happy with Rogers' ownership of the Blue Jays. It would keep all these teams in Canadian hands.

But how the hell it would all work? Well, that's gonna take some explaining.

 

 

 

 

 

 

Comments

[Rick Mogulsby]

Can't wait till one of them wants to fire Cliff Fletcher and the other one wants to hire him - oh wait we already experienced that dysfunctional arrangement. That one lasted about a year. This one will malinger in perpetuity.

[Gio]

They better not!!! Any hardcore - knowledgeable fan ever think they'd say that?! I don't want Rogers communications anywhere near our beloved leafs!!

[David Crenshaw]

Who are the 'Argos'? Please, there certainly is a championship team in Toronto. The Toronto Rock have won the Champions Cup six times in the last 13 seasons, and are about to start defending their latest title in January. Why does the Toronto media pay no attention to this?

[Martin]

This is stupid. Every week you guys come up with something vague and pointless without any reference to reliable sources on this story. What requires explaining is not the proposed partnership you talk about, but how you can manage to take something someone overheard probably on a subway platform and turn it into what you believe is a story, expecting people to buy this crap as fact.

[Darren]

I have a feeling that would mean another channel package I would have to buy here in Ottawa just to see the Leafs play!!

[Naramsin Gabriel]

In the last 12 years or so, the Toronto Rock have won 6 national championships. At least they have a consistent winning attitude and strive for greatness. This may be due to the fact that they are not owned by some money hungry corporation and also because the Bay Street Boys do not have seasons tickets to the games. That lethal combination is the cause of all the problems in the Toronto sports scene

[mike]

just goes to show you that greed has no boundaries. I will NEVER pay to watch Toronto sports teams. NEVER!

[catsrulz]

Guess phone and cable rates will go up to help pay for this

[joy@tbaytel.net]

Well, at least all the TSN sportscasters can now openly cheer for the Leafs on air. Oh, wait a minute, they've always done that.

[Brian Burke (yes, real name)]

A bunch large corporations now own, or partial own, the sports teams I like from the town I'm from......somehow I just don't care though
.

[Kevin]

I realize that Lacrosse is not a Big 4 sport, and it's not the CFL. But the Toronto Rock have won 6 championships in the past 13 years and have missed the playoffs only twice in that span and we do them a disservice by not mentioning this fact.

As for the sale itself, it will be interesting as to how things will play out between Bell and Rogers. Also, will we actually see the Leafs and Raptors commit more to winning than the bottom line?

[Arthur]

Hi Damien, just wondering how it will affect your ability to write about the Leafs or the Rogers Cup for the Star when the Leafs new owner Rogers is also your employer. Is it a conflict of interest for you? Or is it not even an issue?

[A Facebook User]

Just a word to those who read The Star and other Canadian newspapers and join media outlets expressing opinions about the recent MSLE sale.

There is hope. There is a new day dawning.I worked ten years under MLSE and found them to be an incredible organization. With Larry Tanenbaum now THE face of the company you will see change. The men and women who work at MLSE are among the finest in sports and business.

I have no agenda. I've moved on and live in Chicago working for another fantastic organization, the Chicago Bulls.

I hope you give the "new" MLSE a chance-you won't be disappointed.

Sincerely,

Chuck Swirsky

[billy]

These two are just another owner. Leaf profits have been maxed. Their tickets have been maxed. Their exposure have been maxed. They already spend to the cap. Nobody outside of Toronto and area is gonna pay to watch an all Toronto sports channel. Maybe not even in Toronto. They can't hijack Leaf TV rights because the NHL sells that. Unless those two guys talking yesterday know how to play defence or centre, this deal will have zero impact on the Leafs fortunes