Rogers Communications is advancing plans to acquire the remaining stakes in Maple Leaf Sports & Entertainment (MLSE), with the transaction anticipated to close in the final quarter of 2026, pending league approvals. The company intends to fund the acquisition using a combination of existing liquidity and additional bank credit facilities, according to a spokesperson, while declining to provide further specifics ahead of its second-quarter earnings call scheduled for July 22.
As of March 31, Rogers reported approximately $6 billion in available liquidity, including $1.4 billion in cash and cash equivalents, and $4.6 billion in various credit facilities. Sources familiar with the deal indicate Rogers has arranged a preapproved credit facility to ensure it has sufficient capital to complete the buyout of MLSE's remaining ownership stake.
The acquisition is expected to temporarily increase Rogers’ leverage to roughly 4.5 times debt to earnings before interest, taxes, depreciation, and amortization (EBITDA), according to a note from Bank of Montreal analyst Tim Casey. To reduce this elevated leverage, Rogers plans to sell a minority interest of 20 to 30 percent in its combined media, sports, and entertainment holdings within the next year. This potential sale could be valued between $5 billion and $7.5 billion based on current market estimates.
Credit rating agencies are closely monitoring Rogers’ financial strategy. Currently, Moody’s, S&P Global Ratings, and DBRS Morningstar rate the company’s senior unsecured notes just above non-investment grade status, often characterized as speculative or high-yield. Moody’s has indicated that it expects Rogers to lower its leverage to below four times debt to EBITDA within 12 to 18 months but cautioned that prolonged elevated leverage could trigger a downgrade. DBRS Morningstar has maintained a positive outlook based on the anticipated sports transactions but plans to reassess the company’s creditworthiness in April 2027.
Analysts highlight the deal’s impact on the valuation of Canadian sports assets. Bank of Nova Scotia analyst Maher Yaghi noted the transaction establishes a new benchmark, implying a total MLSE valuation of approximately $17.4 billion—39 percent higher than the valuation when Rogers acquired a 37.5 percent stake from BCE Inc. last year. This suggests Rogers is assuming a higher valuation for its sports assets than previously anticipated by investors.
The agreement was finalized sooner than many had expected. Rogers and Kilmer Sports had previously set up a mechanism to determine price through multiple valuation benchmarks if agreement could not be reached; however, the companies agreed on a price before resorting to that process.
The deal also provides substantial returns for Ontario Municipal Employees Retirement System (OMERS), which holds an indirect five-percent stake in MLSE through Kilmer Sports. OMERS invested approximately US$400 million (about C$547 million at the time) in November 2023 and is now exiting its position for roughly C$870 million, equating to an almost 60 percent return over less than three years.
Following the announcement, Kilmer Sports owner Larry Tanenbaum issued an open letter expressing gratitude to fans and reflecting on his decades-long involvement with MLSE. Tanenbaum noted he will step back from ownership as planned under a shareholder agreement arranged 15 years ago, but said he looks forward to remaining a lifelong fan.