Rogers says it’s actively exploring options to make money from its sports investments, including the Toronto Blue Jays and a bigger stake in Maple Leaf Sports & Entertainment (MLSE), which owns the Toronto Maple Leafs and Raptors.
The company is set to take over Bell’s $4.7-billion share of MLSE, which would increase Rogers’ ownership to 75%, pending approval. Once finalized, Rogers estimates its MLSE stake could be worth around $15 billion.
There has been “significant interest from various institutional investors,” said CFO Glenn Brandt during the Rogers Q1 earnings call, hinting that discussions are ongoing but too early to confirm any deals. Rogers posted $280 million in net profit during its Q1.
Rogers CEO Tony Staffieri added that the company plans to “unlock value” from its sports portfolio over the medium term, helping address pressure on its falling stock price.
The company also recently renewed its NHL broadcast deal, agreeing to an $11-billion contract to air games in Canada. That’s more than double the $5.2 billion it paid in 2013. The company says this new deal is expected to be profitable right away.
Sports-related revenue helped boost Rogers’ media division by 24% in the first quarter, although the segment still posted a loss.
Back in September, some analysts predicted the Rogers sports empire could be worth $16.5 billion with an IPO.
