TORONTO 鈥� Experts say rising team valuations and the desire to forge a legacy are likely at the heart of what motivated Rogers Communications Inc. executive chair Edward Rogers to bolster the company's portfolio of Toronto professional sports teams.
The company's $4.7-billion deal to acquire rival telecom BCE Inc.'s 37.5 per cent stake in Maple Leaf Sports & Entertainment will give Rogers a majority control of the Toronto Maple Leafs, Toronto Raptors, Toronto Argonauts and Toronto FC.
It's a move that plays into Rogers' long-standing strategy to build out its sports empire, with the company already owning the Toronto Blue Jays and becoming the national NHL television rights holder a decade ago.
Dave Heger, a senior equity analyst at Edward Jones, says there is probably an "ego benefit" to be realized for Rogers that comes from the status and name recognition associated with owning pro sports teams in a major city.
He says that's on top of the financial attraction of teams like the Leafs and Raptors continuing to increase in value.
In an interview with Sportsnet on Wednesday, Edward Rogers said his company had spent more than $14.5 billion over the last decade on sports. He described it as a "core business for us" while adding that he recognized that "being involved with these teams is a public trust."
This report by The Canadian Press was first published Sept. 20, 2024.
Companies in this story: (TSX:RCI.B, TSX:BCE)
The Canadian Press
