MLSE Likely Selling Raptors to Bell and Rogers

[Built Ford Tough]

The Ontario Teachers Pension Plan is about to cash out its controlling stake of the Maple Leaf Sports and Entertainment empire -- selling to a pair of media giants.

 

Sources have told QMI Agency that a deal worth as much as $2 billion is close to being settled with telecommunications behemoths Bell Media and Rogers Communications, who have been rivals in the past for the much desired 79.5% shares of MLSE.

 

Bell and Rogers represent TSN and Sportsnet, the No. 1 and 2 sports broadcasting powers in Canada, but they will call a truce and split the shares with so many lucrative deals to be spun off their union.

 

An announcement could come as early as Friday, but there are many moving pieces that could delay the final sale until closer to Christmas.

 

Of course, any purchase of the Leafs and the Raptors would have to be approved by the NHL and NBA, respectively. Bell also owns 18% of the Montreal Canadiens with naming rights to its arena. But an NHL executive indicated Thursday night that the league is aware there is an imminent change in the Toronto ownership situation. One of the matters to be settled is Bell's 18% interest in the Montreal Canadiens, which must be divested at some point under NHL rules.

 

A sale to Rogers and Bell would also mean that construction magnate Larry Tanenbaum, who holds the remaining 20.5% interest in MLSE, will not exercise his right of first refusal on the shares, or that he tried and failed with a plan of his own.

 

http://m.torontosun.com/2011/12/08/sale-of-mlse-to-rogers-bell-is-close

 

I don't know what is the lesser of two evils between MLSE and Bell/Rogers. Having both Bell and Rogers as majority owners of the Raptors (and Leafs, Marlies and TFC) is kind of scary as who knows what the hell is going to happen.

 

On the other hand, maybe having the two of them together may be a positive thing as Bell may push Rogers to spend money to field a winning team as opposed to being content with just making a profit (or vice/versa).

 

I really don't know what to think about this. I would've prefered to have some private owner such as Mark Chipman (who bought the Jets) but given the ridiculous amount that the OTPP wanted for its 80% share in MLSE, that was likely never an option anyways.

[headliner]

I didn’t like the idea of MLSE selling to an American company. I rather look at the bright side of things at least Bell and Rogers are Canadian base so I at least feel that the Raptors are here to stay. Who knows they may eventually put more money into the Raptors once they feel that we have a legit chance of winning.

[Built Ford Tough]

The Raptors wouldn't be moved even if an American bought them.

 

Even with them being an absolute joke of a team for the vast majority of their history, they are still in the top 10 of the most valuable NBA franchises in the league. The league wouldn't let an owner up and move them when they are doing so well. It would be a brutal business move.