The Globe and Mail reports in its Tuesday edition that the lineup for Rogers Communications' sports teams is not just to get into venues when the Leafs, Raptors or Blue Jays play. The Globe's Andrew Willis writes there is also a long list of investors who want to get in on major league action by acquiring a stake in Toronto's pro sports franchises once Rogers concludes its $4.7-billion purchase of BCE's minority stake in Maple Leaf Sports & Entertainment (MLSE). Valuations on sports franchises seem to hit new highs each time a team changes hands, prompting concerns that debt-heavy Rogers is paying a high price to double its stake in MLSE to a 75-per-cent holding. In response, Rogers executives have consistently said they will buy out BCE without taking on additional loans by selling minority stakes in MLSE teams to outside investors. These potential bidders are not just sports fans with big wallets. They include fund managers who want to capitalize on what they project will be strong continued growth in sports revenues. A new study by one of the potential minority owners in Toronto teams, private equity firm Arctos Partners, shows already lofty valuations on sports properties are all but guaranteed to keep soaring.
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