How Rogers' MLSE play will benefit fans and marketers
From potential NFL franchises to bold moves, here's why Rogers’ majority ownership in MLSE will benefit sports fans and increase marketing opportunities.
It doesn’t take much for X (formerly known as Twitter) to turn from a fairly negative place to really negative.
That’s exactly what happened in mid-September when news broke of telecommunications giant, Rogers, acquiring Bell’s stake in Maple Leafs Sports and Entertainment (MLSE) for $4.7 billion. The deal will make Rogers the majority owner of MLSE.
Immediately, the reaction from sports writers and pundits was how bad this deal was going to be for fans of the Toronto Maple Leafs, Blue Jays, Raptors and more. The general reaction was that Rogers would likely cheap out on its teams and look at increasing ways of being profitable, but not turn the teams into winning franchises.
I’m not convinced.
This post is dedicated to why Rogers’ majority ownership in MLSE will actually benefit both sports fans and marketing professionals who are looking to amplify their brands through sports in Canada, and globally.
Hasn’t Succession taught you anything?
Remember when Edward Rogers hired Brian Cox to do a video during the Joe Natale, Rogers CEO saga? There are definitely similarities between Rogers and Cox’s character on the popular TV show “Succession” in that they will do whatever it takes to win.
In Rogers’ case, winning will need to happen on the field, court or ice, but it’s also to be seen as a winner himself. In North American sports, one way to help that cause is by owning an NFL franchise.
That’s why it was particularly interesting on Wednesday that MLB super agent Scott Boras hinted to reporters that MLSE could be in the mix for an NFL franchise.
“Now with the recent (consolidation) of hockey and basketball and soccer, I would imagine that he probably wants to be involved in some other sports where they wear helmets, I don't know,” Boras said, as reported by Sportsnet’s Shi Davidi and Ben Nicholson-Smith.
The Washington Commanders were the last NFL franchise to sell in 2023 for $6.05 billion. In 2023, NFL teams make north of $400 million apiece through national media rights, league sponsorships and shared revenue and royalties. Given football’s popularity, it’s like marketing on steroids with the league and the teams in it. Companies should be already thinking of ways to integrate their companies with a potential Toronto NFL franchise so they’re ahead of the game should a deal be struck.
If Rogers was able to bring a team to Canada, well, now that would be a true Logan Roy move.
Look for Rogers to consolidate
I expect two substantial moves to take place once Rogers takes over Bell’s 37.5 per cent stake of MLSE in mid-2025.
Blue Jays
This one is fairly obvious. It would make the most sense to fold the Rogers-owned Blue Jays franchise into the MLSE umbrella. This would make Rogers’ sports franchises more efficient and if you’re MLSE CEO Keith Pelley, you would definitely be advocating your Rogers connections to add this MLB team into your toolbox to increase the value of the organization.
Toronto FC
Soccer has been on the rise in North America over the last 10-plus years and Major League Soccer is a big reason for that. Forbes recently estimates the average MLS franchise is valued at $658 million, a 14 per cent bump from 2023. What does all this mean for Toronto FC? The franchise hasn’t had much success since its 2017 title, despite paying big money for some of its top players. Does it open the door for Rogers’ MLSE to sell while the value of soccer franchises are high? We’ve already seen Rogers make plays in recent weeks to reduce its debt. Don’t count this move out.
From a marketers’ point of view, should TFC switch ownership, it would offer brands an opportunity to capitalize on the news during what’s an already hot topic, thus increasing brand affinity.
See you at on the Toronto Stock Exchange
Marketers crave value in the properties they associate themselves with, especially if you can see them grow on a day-to-day basis. That’s why there’s been rumblings since the Rogers deal news of the telco company taking MLSE public with an IPO.
The Financial Post had a good article about how that could work. This would be a similar, albeit bigger, move to what the Atlanta Braves did in 2016 with its IPO, becoming the first MLB franchise to do so.
The Braves’ stock has only risen as the team’s on-field performance has improved. Expect this to be another way MLSE and Rogers increases the company’s value, but also for marketers to find ways to associate themselves with high-value, well-performing sports franchises.