Rogers buys out Bell’s stake in MLSE (37.5%, US$3.5B)

[rojac]

There is definitely going to be 3-4 providers for the next NHL Canada deal. I think Amazon, Rodger & Bell are a lock considering their recent trends. Will be interesting to see if there will be more parties involved.

I assume that Rogers has an exclusive window for renewing their NHL rights deal (at a newly negotiated price). What I wonder is if there's a way they can bring in a partner during that window. For example, could Rogers team up with Amazon to "renew" the rights before Bell woukd even be able to get involved?

 

[rojac]

How long until Rogers has a bunch of layoffs to pay for all this?

If nothing else, I expect the Blue Jays to be rolled into MLSE, which will lead to eliminating a number of positions. But yeah, those will likely not be the only ones.

 

[Yukon Joe]

I assume that Rogers has an exclusive window for renewing their NHL rights deal (at a newly negotiated price). What I wonder is if there's a way they can bring in a partner during that window. For example, could Rogers team up with Amazon to "renew" the rights before Bell woukd even be able to get involved?

So I wouldn't assume that at all.

You get these kinds of negotiating windows in the NHL (and other pro sports) because you have the NHL itself policing them, plus the NHLPA supervising agents. And even still you constantly get allegations of tampering.

As between Rogers, Bell and the NHL though, there's no one to supervise a tampering allegation, even if one was inserted into the original TV rights deal signed in 2014. Who is going to do anything if a Bell executive sits down with Gary Bettman over dinner some day to say "Hey, in 2026 we want to offer you oodles of money".

 

[varsaku]

But your initial point was that it seems like Bell is going to make a big bid for NHL rights because "who else is there to pick up the pieces?". I pointed out there are several parties out there that were not a factor back when the Rogers deal was initially negotiated in 2014.

Given how Rogers has complained about how much the NHL broadcast deal has complained I think it's widely accepted that Bell was reasonably happy to NOT have gotten the deal. As such I would not be surprised if Bell doesn't come in with some massive offer for broadcast rights. Bell selling their share of MLSE is just as consistent with getting OUT of the sports business, as it is with wanting do double down on it on the broadcast side.

The media landscape is changing very quickly. Literally the only reason my family has a cable package is for live sports - and I suspect we'll give that up one day. I mean if you asked me in my 20s if I'd ever not have a home phone line I would have said you were crazy - yet we got rid of ours almost 10 years ago now.

Yes, people will always whine about sports - and the NHL does have to consider their position carefully. NHL tickets are already priced out of many people. Limiting games to a paid streaming service might maximize revenue in the short term - but at the risk of the next generation not even being exposed to the game.

But the next generation doesn't have cable. So your best bet is getting it on Netflix, Apple or Amazon which most young people have at this point.

So - anything is possible, obviously. I don't know that Bell would even need to team up with anyone - they just got $3.5 billion, they have a market cap of $44 billion and are Canada's 25th largest company in terms of market value.

But really - why sell 37.5% of the Raptors in order to buy Grizzlies 2.0 (or Montreal NBA)? It's taken 25 years but the Raptors have built up a loyal nation-wide fanbase which was cemented by wining the championship in 2019. I think I'd rather have 37.5% of the Raptors than 100% of some other Canadian team.

A new Canadian NBA is going to have an uphill battle to gain market share unless they have immediate success. That seems like a huge money sink for a market much smaller in potential than Toronto. Doesn't make financial sense for Bell to go that route.

I assume that Rogers has an exclusive window for renewing their NHL rights deal (at a newly negotiated price). What I wonder is if there's a way they can bring in a partner during that window. For example, could Rogers team up with Amazon to "renew" the rights before Bell woukd even be able to get involved?

Bell is going to fight hard to get a piece of that next deal. They don't have much content currently for national rights.

 

[varsaku]

I have major doubts that as much as those entities are chomping at the bit to get in on the ground floor of sports broadcasting, that the entire contract going digital would ultimately fly, especially from the feds and CRTC. Apple and MLS can get away with it considering the lower stature, and even then, Whitecaps/TFC/Impact games are still selectively rebroadcasted on TSN.

Considering that we had people, including Conservative MP's, whining about not getting OTA Oilers SCF games because CBC had prior programming in June, and had to look on Sportsnet, how much more complaints are there going to be that your typical HNIC game in January is locked out because you don't have AppleTV+ and Amazon Prime? Already get that with the Jays on Friday Night Baseball on AppleTV, and that's at max three games a year.

You can delay it all you want but eventually everything will end up in streaming. Already NFL is putting a lot of games on streaming services. Providers are pouring money to get exclusive streaming rights to build a stable subscriber base to sustain a move to streaming only as cable continues to wane.

 

[rojac]

Yep. It makes sense - they have effectively everything else that matters in terms of sports, and aside from regional TV contracts that are blacked out, they have nothing in terms of winter sports that actually matters to Canadians other then the NFL. And considering that Rogers has very publicly whined about how much of an albatross the Canadian TV contract is...who else is there to pick up the pieces?

I'm not sure that you can say that baseball does not matter to Canadians. And TSN only has ESPN Sunday Night Baseball and a few other ESPN games.

As for winter sports that matter to Canadians, you may be undervaluing the NBA, but I could be wrong. TSN also has curling which I believe does quite well for them.

 

[Dynamite Kid]

Yeahhhh don't think Rogers is losing the NHL rights anytime soon, though I imagine they won't have everything next time.

Could Bell team up with someone else for a second Canadian NBA team?

They could team up with Quebecor and bring a team to Quebec. Bell would have the English rights and Quebecor could have the French rights.

 

[rojac]

But the next generation doesn't have cable. So your best bet is getting it on Netflix, Apple or Amazon which most young people have at this point.

A new Canadian NBA is going to have an uphill battle to gain market share unless they have immediate success. That seems like a huge money sink for a market much smaller in potential than Toronto. Doesn't make financial sense for Bell to go that route.

Bell is going to fight hard to get a piece of that next deal. They don't have much content currently for national rights.

My pint was that Rogers may be able to wrap up the rights (either alone or with a partner) before Bell even gets a chance to bid.

 

[Golden_Jet]

I assume that Rogers has an exclusive window for renewing their NHL rights deal (at a newly negotiated price). What I wonder is if there's a way they can bring in a partner during that window. For example, could Rogers team up with Amazon to "renew" the rights before Bell woukd even be able to get involved?

I doubt any deals have an exclusive window, or Roger’s would of been shut out last time, and that’s not the best way to get top dollar for the rights.

 

[CokenoPepsi]

I'm not sure that you can say that baseball does not matter to Canadians. And TSN only has ESPN Sunday Night Baseball and a few other ESPN games.

As for winter sports that matter to Canadians, you may be undervaluing the NBA, but I could be wrong. TSN also has curling which I believe does quite well for them.

NBA does pretty bad in the ratings, they are a clear 4th or 5th behind the NHL, NFL, CFL, Curling.

 

[rojac]

His share is probably worth less today. In a potential Bell- Rogers pissing contest that share had value as it could put one of them over 50%. Now its a true minority interest with a controlling partner. I assume shareholders agreements included a valuation methodology if Bell/Rogers wanted to buy him out but certainly less value in a 3rd party sale today

Actually, nothing changes in regards to Tanenbaumks share. The Rogers/Bell was set up so that Roger's and Bell co-owned a holding company that owned 75% of MLSE explicitly to prevent Tanenbaum from siding with one or the other. That's why Tanenbaum's share of MLSE was increased from 20.5% to 25%.

 

[CokenoPepsi]

So - anything is possible, obviously. I don't know that Bell would even need to team up with anyone - they just got $3.5 billion, they have a market cap of $44 billion and are Canada's 25th largest company in terms of market value.

But really - why sell 37.5% of the Raptors in order to buy Grizzlies 2.0 (or Montreal NBA)? It's taken 25 years but the Raptors have built up a loyal nation-wide fanbase which was cemented by wining the championship in 2019. I think I'd rather have 37.5% of the Raptors than 100% of some other Canadian team.

Yeah, just spit balling, I think it could work in Vancouver who as they far enough away from Toronto as the Raptors have yet to really build a strong loyal following unlike say the Blue Jays nation wide

 

[rojac]

NBA does pretty bad in the ratings, they are a clear 4th or 5th behind the NHL, NFL, CFL, Curling.

It's been so long since I have seen Canadian ratings, I couldn't recall hw the NBA did (specifically non-Raptors NBA). Thank you.

 

[Golden_Jet]

NBA does pretty bad in the ratings, they are a clear 4th or 5th behind the NHL, NFL, CFL, Curling.

And F1

 

[Golden_Jet]

Actually, nothing changes in regards to Tanenbaumks share. The Rogers/Bell was set up so that Roger's and Bell co-owned a holding company that owned 75% of MLSE explicitly to prevent Tanenbaum from siding with one or the other. That's why Tanenbaum's share of MLSE was increased from 20.5% to 25%.

Tanenbaum sold 5% I thought.

OMERS buys 5% indirect stake in MLSE from Tanenbaum for US$400M – Sportsnet.ca

I thought I read Tanenbaum will be selling the rest within 2 years, as Bell and Roger’s had the right to buy him out in 2026.

 

[Chileiceman]

Now that Rogers owns a CFL team, I wonder if they will try to compete for CFL broadcasting rights whenever those are up for renewal.

 

[Yukon Joe]

Actually, nothing changes in regards to Tanenbaumks share. The Rogers/Bell was set up so that Roger's and Bell co-owned a holding company that owned 75% of MLSE explicitly to prevent Tanenbaum from siding with one or the other. That's why Tanenbaum's share of MLSE was increased from 20.5% to 25%.

I thought it was the other way, actually - that when Rogers/Bell purchased their majority share of MLSE from the Teacher's Pension they were happy to have Tanenbaum involved as a tiebreaker in case of any dispute between the two telecoms?

Now that Rogers owns a CFL team, I wonder if they will try to compete for CFL broadcasting rights whenever those are up for renewal.

Instead I would expect Rogers to try and sell the Argos at the first opportunity.

That being said I don't know who would buy the Argos when MLSE still owns the stadium.

 

[KaN19]

Wonder if Rogers merges the Jays into the MLSE structure after buying out Larry T in a few years.

 

[rojac]

Wonder if Rogers merges the Jays into the MLSE structure after buying out Larry T in a few years.

I can't see why they wouldn't. There have to efficiencies to combining the business parts of the organization. In fact, I wonder if you could see Rogers buying out Tanenbaum early to facilitate such a move. Maybe they buy out Tanenbaum, combine the two organizations and then sell a minority share in the whole thing to someone.

 

[rojac]

I thought it was the other way, actually - that when Rogers/Bell purchased their majority share of MLSE from the Teacher's Pension they were happy to have Tanenbaum involved as a tiebreaker in case of any dispute between the two telecoms?



Instead I would expect Rogers to try and sell the Argos at the first opportunity.

That being said I don't know who would buy the Argos when MLSE still owns the stadium.

Just to be completely accurate, MLSE controls BMO Field, but they do not own it.

I wonder if Rogers might end up packaging and selling TFC, Arguing s, and their managing rights to BMO Field.

 

[Voight]

This has nothing to do with a 2nd Toronto team. Bell is in serious debt and needs cash.

This has been int he works for months. Edward Rogers wants to be the king of sports in Toronto and now he is.

it really feels like Bell/TSN is loading up to get the TV rights for the NHL in Canada

Bell has a ton of debt, this is more about paying some of that off.

 

[KevFu]

My internet sucks right now. Can someone look up and find a definitive answer on the important question with regard to Hamilton or GTA2:

DOES THIS REQUIRE BOG APPROVAL like a franchise sale does??!?!

Please and thank you!

 

[awfulwaffle]

I have major doubts that as much as those entities are chomping at the bit to get in on the ground floor of sports broadcasting, that the entire contract going digital would ultimately fly, especially from the feds and CRTC. Apple and MLS can get away with it considering the lower stature, and even then, Whitecaps/TFC/Impact games are still selectively rebroadcasted on TSN.

Considering that we had people, including Conservative MP's, whining about not getting OTA Oilers SCF games because CBC had prior programming in June, and had to look on Sportsnet, how much more complaints are there going to be that your typical HNIC game in January is locked out because you don't have AppleTV+ and Amazon Prime? Already get that with the Jays on Friday Night Baseball on AppleTV, and that's at max three games a year.

To be fair, the complaints don't really matter. End of the day, who is going to pay the most to the NHL for rights.

 

[Tom ServoMST3K]

How long before they start talking about Toronto 2? I mean aside from right now by us crazies. Mainly the media. How long before they do it?

My immediate first thought was this as well.

Before this, there was a zero per cent chance of it happening IMO.

In terms of TV deals, I've been assuming the NHL is going to split Canadian rights again.

IMO in terms of broadcast quality, going down to just Sportsnet was a complete disaster - no one was striving to out-compete each other, and I think that showed.

I give credit to SN for improving over the years, but the first couple seasons were complete disasters for me as a viewer, and I still remember that.

 

[Tom ServoMST3K]

I'm not sure that you can say that baseball does not matter to Canadians. And TSN only has ESPN Sunday Night Baseball and a few other ESPN games.

As for winter sports that matter to Canadians, you may be undervaluing the NBA, but I could be wrong. TSN also has curling which I believe does quite well for them.

Curling is technically split, but in terms of big-time events, TSN has the Scotties, Brier and the men's and women's national championships, which are the big events of the year.