Rogers to take full ownership of MLSE with $4.35B purchase of remaining stake

TORONTO — Rogers Communications Inc. says it has signed a deal to buy the remaining 25 per cent stake in Maple Leaf Sports & Entertainment it does not already own from Kilmer Sports Inc. for $4.35 billion.

Rogers chief executive Tony Staffieri called it a defining moment for the company.

“Our full ownership of MLSE brings together Canada’s premier communications company with Canada’s premier sports and entertainment organization,” Staffieri said in a statement.

“It gives us even more opportunity to invest in championship-calibre teams, create unique experiences for customers and fans, and unlock long-term value for shareholders.”

MLSE owns the Toronto Maple Leafs hockey team, Toronto Raptors basketball team, Toronto FC soccer team and the Toronto Argonauts football team.

Last year, Rogers closed a separate $4.7-billion deal with rival BCE Inc. to buy its 37.5 per cent stake in MLSE, making it the majority owner.

The two companies had previously owned equal stakes in the sports conglomerate, while the remaining quarter was owned by Larry Tanenbaum through his holding company, Kilmer. Rogers held an option allowing it to buy out that remaining 25 per cent stake in MLSE.

Beyond MLSE, Kilmer owns the Toronto Tempo, who are playing their inaugural WNBA season, and last month became the first Canadian investor in the PWHL.

Tanenbaum, who currently serves on the MLSE board of directors as chair emeritus, will step down once the deal closes, as will MLSE board member Dale Lastman.

With Kilmer divesting from MLSE, Tanenbaum will also step down as the Maple Leafs’ representative on the NHL board of governors and Toronto FC’s representative on MLS’ board. Lastman is stepping down as the Argonauts’ representative to the CFL board.

Tanenbaum plans to step down as chairman of the NBA board of governors, and the Raptors’ representative on that board, at the end of September.

“As I step back as an owner, as contemplated by a shareholders agreement entered into 15 years ago, I am extremely proud to leave this legacy of excellence, a culture of winning, and a family feeling among all our MLSE employees to be carried on,” Tanenbaum said in an open letter to fans published Monday.

“I applaud the accomplishments of (Rogers chairman) Edward Rogers and wish him and his team all the best moving forward with this extraordinary organization.”

Brock University sport management professor Michael Naraine said the move would be a benefit to the teams under MLSE’s umbrella.

Naraine described a decision-making process that could be “tumultuous” under MLSE’s previous governance structure, in which a board of directors included representatives from Rogers and Bell, along with Tanenbaum.

“Part of the challenge that MLSE always had in its evolution was having multiple cooks in the kitchen and trying to please multiple parties. That can be tough at times,” Naraine said in an interview.

“By Rogers now owning 100 per cent of MLSE, what they’re able to do is have less cooks in the kitchen, have a dedicated chef and with a dedicated vision for what the menu should look like and how best to serve the patrons coming in to eat.”

Rogers expects the deal, which is subject to league approvals, to close in the fourth quarter of this year.

The company said full ownership will strengthen its ability to drive long-term growth across its businesses.

“The strategic value of our sports business is even greater when you combine it with our core connectivity business — it gives us a unique value proposition to compete in a very crowded marketplace,” Staffieri said.

In addition to MLSE, Rogers owns the Toronto Blue Jays baseball team, Rogers Centre and Sportsnet network.

Earlier this year, Rogers chief financial officer Glenn Brandt said the telecom giant planned to combine its Rogers Sports & Media subsidiary, including the Blue Jays and Rogers Centre, with MLSE.

Concordia University sports economist Moshe Lander said the concentration of ownership under Rogers means that “now it’s one voice and there’s no real room for dissent.”

But he downplayed any risks to fans under that structure, suggesting higher ticket prices were unlikely unless the various teams experience a surge in success through championships.

The real financial boon to Rogers will come through content ownership, Lander said.

“What that allows them to do then is to go to advertisers and say, at least as far as Toronto sports are concerned, ‘You have to do business with us,'” he said in an interview.

“The advertisers are now going to say, ‘If we want to be involved with Toronto sports, we really don’t have a lot of options here, we have to do business with Rogers, or we don’t do business.’ That’s where they’re going to be able to flex their muscles and that effectively puts Telus or Bell at a huge disadvantage in the marketplace for media telecommunications.”

Rogers intends to sell a minority stake in its consolidated sports, media and entertainment assets over the course of the next year.

The deal with Kilmer implies a total value for MLSE of $17.4 billion, a 39 per cent increase from the $12.5-billion valuation implied when Rogers announced the acquisition of BCE’s stake.

“Full ownership was well telegraphed. What is more relevant is the price paid, which sets a new benchmark valuation,” said Scotiabank analyst Maher Yaghi in a note.

He said valuations for the Blue Jays are estimated to be between $3.6 billion and $4 billion.

“Combined with the $17.4 billion, Rogers is underwriting a much higher sports asset value than investors assumed.”

Rogers also has partnerships with the Vancouver Canucks, Edmonton Oilers, Calgary Flames, the NHL, the NBA, MLB and Live Nation.

Its new 12-year, $11-billion agreement for the national rights to NHL games in Canada starts in the upcoming 2026-27 season.

This report by The Canadian Press was first published July 6, 2026.

— With files from John Chidley-Hill in Toronto

Companies in this story: (TSX:RCI.B, TSX:BCE)

Sammy Hudes, The Canadian Press