Rogers hopes sports deals can lift its share price

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.

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.

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.

“Our priority is to change this,” Staffieri said in his prepared remarks to analysts on Rogers’ first-quarter earnings call.

“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.”

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.

Once that deal closes, which is expected midway through this year, Rogers would own a 75 per cent stake in MLSE.

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.

“We are more aware than the market is reflecting right now of the value of those assets on our balance sheet,” said Brandt.