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TORONTO — The chief executive of Rogers Communications Inc. says the company is keen to unlock underappreciated value from its growing collection of sports assets after extending its national hockey broadcast rights and signing a deal to expand its stake in Maple Leaf Sports & Entertainment.
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Rogers believes its sports portfolio is now “unrivalled in Canada” and among the “best in the world,” said president and CEO Tony Staffieri on Wednesday, but he acknowledged that value isn’t reflected in its share price.
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“Our priority is to change this,” Staffieri said in his prepared remarks to analysts on Rogers’ first-quarter earnings call.
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“Sports assets continue to appreciate significantly in value and that’s why investors remain very interested in holding a minority position in these appreciating assets.”
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For now, he said the company is focused on closing its $4.7-billion deal with BCE Inc., the owner of rival telecom company Bell Canada, to acquire its 37.5 per cent stake in the conglomerate that owns the NHL’s Toronto Maple Leafs, NBA’s Raptors, CFL’s Argonauts, MLS’ Toronto FC and AHL’s Marlies.
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Once that deal closes, which is expected midway through this year, Rogers would own a 75 per cent stake in MLSE.
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Rogers chief financial officer Glenn Brandt said that combined with Rogers’ existing ownership of the Toronto Blue Jays and the baseball club’s home stadium, the company’s total sports assets would be worth around $15 billion once the MLSE deal is completed.
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“We are more aware than the market is reflecting right now of the value of those assets on our balance sheet,” said Brandt.
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“Others talking to us also understand that value.”
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While Rogers intends to hold a controlling interest in MLSE, some analysts have speculated it could look to sell a minority stake to investors.
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Brandt said Rogers is already in discussions with “various institutional investors” that have expressed “substantial” interest as the company awaits league and regulatory approvals of the MLSE deal.
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“It’s premature for me to start speculating on when that might result in a transaction,” he said.
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“We will explore those opportunities with a very open mind.”
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Earlier this month, Rogers also announced a 12-year, $11-billion agreement for the national rights to NHL games in Canada starting in the 2026-27 season. The deal will kick in following the conclusion of its current 12-year deal it signed for $5.2-billion.
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“These national media rights, now locked in until 2038, are the most valuable media rights in Canada,” said Staffieri.
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“The first deal was profitable and successful for Rogers and Sportsnet, and we plan to build on this over the next 12 years.”
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Rogers’ shares were trading for $35.87 on Wednesday morning, up 2.1 per cent, after the company reported its first-quarter profit rose compared with a year ago.
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