Leafs, Raptors, FC up for sale (UPD: reports - OTPP have withdrawn sale offer)

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Killion

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Feb 19, 2010
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I'd heard the OTPP was massively in the hole and trimming back benefits. Maybe they're selling for the oldest reason of all - they need the cash.

I suspect you may well be correct Dado. Secondary tax implications?.

I'm sure there are others here who followed the situation 8 years ago who would agree.

Without looking it up, ya, I do recall reading about the Thompson-Stavro connection & the structure visa-vie Woodbridge & CTV etc. Interesting timing what with TNSE & the formers connection in Winnipeg, leaving one to wonder.......

To take my previous comment further, I do wonder if there is a Russian billionaire interested in buying the team.

I suppose its possible, however, do you not think that whichever one of the many out there would likely find themselves pretty far back in the que, behind local interests?. There's just gotta be 3-5+ Toronto based multi-nationals with more than just a passing interest no?. Tannebaum could possibly make about 2 or 3 phone calls (TD Capital etc) & win the prize before it gets to the point of bids, or is he no longer in a position to take adbvantage of his first right of refusal?. Im confused as to why their would be discussion at all about "outside interests" as stated in the OTPP release of Saturday the 12th.
 

Kencaid

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Link taken from the Leaf board (Thanks to Cmillz).

Rogers had expressed interest, but dropped out quite a while ago.



Still several bidders though,



The "abroad" comment is slightly interested, could that mean American? Or are the Leafs drawing interest from outside of North America? Or both?

http://www.theglobeandmail.com/repo...kes-pass-on-maple-leafs-stake/article1940403/

"Abroad" does not just mean American. The leafs are a cash cow, the raps are profitable when they suck, Toronto FC is rapidly developing a large fan base even though they suck. This is a low risk asset that still has more revenue potential. You could very easily see foreign companies/individuals from Europe/Russia or potentially the middle east (I want to put china in this list but idk of any examples of chinese investors buying sports franchises).

Side question: Does the sale of MLSE include the condo developments around maple leaf square?
 

seanlinden

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Apr 28, 2009
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I suspect you may well be correct Dado. Secondary tax implications?.



Without looking it up, ya, I do recall reading about the Thompson-Stavro connection & the structure visa-vie Woodbridge & CTV etc. Interesting timing what with TNSE & the formers connection in Winnipeg, leaving one to wonder.......



I suppose its possible, however, do you not think that whichever one of the many out there would likely find themselves pretty far back in the que, behind local interests?. There's just gotta be 3-5+ Toronto based multi-nationals with more than just a passing interest no?. Tannebaum could possibly make about 2 or 3 phone calls (TD Capital etc) & win the prize before it gets to the point of bids, or is he no longer in a position to take adbvantage of his first right of refusal?. Im confused as to why their would be discussion at all about "outside interests" as stated in the OTPP release of Saturday the 12th.

There's really no reason for Tannenbaum to compete. He has first right of refusal on any sale which means he can let other parties bid and then decide if he wants to match.

There's also no "queue" to speak of. The Pension plan has made it known that they are selling, and made it known the approximate price they want. They'll deal with whomever gives them the best deal.
 

htpwn

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Nov 4, 2009
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Side question: Does the sale of MLSE include the condo developments around maple leaf square?

I don't think anyone is sure one way or the other if it does or doesn't.

The project was done as a Joint venture between Cadillac Fairview and MLSE, so who knows who actually held on to what.
 

Killion

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Feb 19, 2010
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There's really no reason for Tannenbaum to compete. He has first right of refusal on any sale which means he can let other parties bid and then decide if he wants to match....There's also no "queue" to speak of. The Pension plan has made it known that they are selling, and made it known the approximate price they want. They'll deal with whomever gives them the best deal.

Got it. Thanks again for the clarification. I was wondering how the process might take place. Most of the transactions between Ballards estate, Stavro's & MLSE was done on the QT. I wasnt sure if perhaps Tannebaum didnt have some sort of exclusivity clause that would kick in with 1st right of refusal; paying current market value and or an option to possibly only purchase certain components of MLSE's holdings.
 

seanlinden

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Got it. Thanks again for the clarification. I was wondering how the process might take place. Most of the transactions between Ballards estate, Stavro's & MLSE was done on the QT. I wasnt sure if perhaps Tannebaum didnt have some sort of exclusivity clause that would kick in with 1st right of refusal; paying current market value and or an option to possibly only purchase certain components of MLSE's holdings.

Well, MLSE isn't going to get split up, and there's no exclusivity clause, just a first right of refusal.

Even if the Teachers want to sell it to Tannenbaum, both parties need to realistically figure out what it's worth to determine the fair price, and the way to do that is to guage interest publically. Maybe MLSE is worth the $2b valuation, maybe it's worth $2.3b, maybe it's worth $1.7, maybe it's worth $3b. The only thing we do know -- it's worth what somebody is willing and able to pay.

In a situation like this, it's not going to come to a "strong-arming" situation with them fighting over control. I think Balsille's antics gave people a highly distorted view over how these types of deals go down. Tannenbaum has apparently worked very well with the teachers (he is chair of the board desite only owning 23%) and there's no reason to believe they won't continue to work well together. They just have a responsibility to figure out what the empire is worth.

The biggest question will problably come down to whether or not an outside group will offer up a high enough price that Tannenbaum isn't willing or able to match. The second part will be whether or not Tannenbaum needs to finds himself some extra financial backing because he may have to purchase all 66%.

I don't think anyone is sure one way or the other if it does or doesn't.

The project was done as a Joint venture between Cadillac Fairview and MLSE, so who knows who actually held on to what.

Once Condos are sold, they become property of their owners and the owners form the conominium corporation. The only thing that would remain in MLSE/Fairview's hands would be the retail in the lower floors of the towers, and I suspect that remained with MLSE.
 
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BlueAndWhite

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Once Condos are sold, they become property of their owners and the owners form the conominium corporation. The only thing that would remain in MLSE/Fairview's hands would be the retail in the lower floors of the towers, and I suspect that remained with MLSE.

There's a hotel/office component as well.

However, I seem to recall that it is Cadillac Fairview that owns the "podium" section of MLS and MLSE just leases the space for Real Sports.

The real partnership on the development was between Cadillac and Lanterra. In fact, the two are building a three building mixed use development right across the street (two condo towers of 60ish stories and a 30 storey office building).

And Cadillac is 100% owned by the OTPP.
 

Killion

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Balsille should buy them, and move them to Hamilton...;)

Sure. But he'll have to wait until 2026 when OTPP "supposed" in-house Lawyer Marc Drier gets released from the joint. He's got all of the paperwork in a lock-up somewhere implicating MLSE, shutting young Jimmy out. And in trifecta no less. :cry:
 

knorthern knight

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Rather than starting a new thread, I decided to continue the old one. As to the question of WHY the Ontario Teachers' Pension Plan is looking to sell its stake in MLSE, check the article http://www.cbc.ca/news/canada/windsor/story/2011/04/05/otpp-funding-shortfall.html The executive summary...
  • The Ontario Teachers' Pension Plan is a "defined benefit" pension plan. I.e. retired teachers receive a benefit proportional to their working salaries, and years of service.
  • Retirees are living longer and drawing on their pensions for longer than the previous generation.
  • The fund now pays out $1.8 billion more each year than it receives in contributions.
  • While the fund posted a 13 per cent return in 2009, it saw its funding shortfall jump from $2.5 billion in 2008 to $17.1 billion in 2009.
There isn't an immediate crisis, because they have $107.5 billion in assets. They're talking 70 to 80 year timelines, which appears to be an actuarial requirement.
 

mrCoffea*

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It's kind of strange that Rogers wouldn't be interested anymore.... think of what they could do to Sportsnet if they had exclusive rights to air every Jays, Leafs, Raptors and TFC game....
 

Killion

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Has there been any further chatter on the airwaves or elsewhere in the GTA with respect to who might be looking things over?. Havent heard a peep about it out here.
 

htpwn

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Has there been any further chatter on the airwaves or elsewhere in the GTA with respect to who might be looking things over?. Havent heard a peep about it out here.

Aside from the talk about the pension shortfall mentioned a couple posts earlier, not really. There's been an opinion piece or two in the Toronto Star, but nothing worth repeating.
 

Ryan34222

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It's kind of strange that Rogers wouldn't be interested anymore.... think of what they could do to Sportsnet if they had exclusive rights to air every Jays, Leafs, Raptors and TFC game....
would love to see Rogers purchase MLSE..i could see Saint Jimmy back for another kick at the can if that happened.
 

Killion

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would love to see Rogers purchase MLSE..i could see Saint Jimmy back for another kick at the can if that happened.

I really really really wish you could keep up Ryan. What part of "persona non grata" dont you get?.
 

wjhl2009fan

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It's kind of strange that Rogers wouldn't be interested anymore.... think of what they could do to Sportsnet if they had exclusive rights to air every Jays, Leafs, Raptors and TFC game....

You have to keep in mind its not justa toronto channel they have to be able to offer something for everyone around the country in terms of sports.As for toronto fc tsn has a i beleave a 6 year deal with mls so untill thats is up they can't air every game as for the leafs possible i could see them making a big push for complete nhl rights once the deal with cbc is up.
 

Thrillingbroom

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Jun 15, 2009
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It's kind of strange that Rogers wouldn't be interested anymore.... think of what they could do to Sportsnet if they had exclusive rights to air every Jays, Leafs, Raptors and TFC game....

It wouldn't really matter if Rogers bought the team, there's a rule in the MLSE charter that all rights have to be auctioned off to the highest bidder.
 

htpwn

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Looks like some news slipped through the cracks, 5 days old.

The source said nothing of any consequence happening at present and that any mention of Rogers is speculation at best. When Teachers announced it would explore the sale of its 66-per-cent stake in MLSE last month, sources at Rogers told The Globe and Mail the media giant was not interested in buying the shares.

No one has yet come forward to look at MLSE's books, according to the source. The company is still putting the finishing touches on the data room suitors will use to look at MLSE's financial information.

http://www.theglobeandmail.com/spor...nterested-in-mlse-source-says/article1972617/
 

Ryan34222

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Mar 19, 2010
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I really really really wish you could keep up Ryan. What part of "persona non grata" dont you get?.

Rogers and Blackberry have a nice relationship, why can't i make the link that Rogers may be a little more open to the idea of a team in Hamilton, and in time JB's persona non grata may wear off enough to get him in to the boys club

pipe dream..maybe.. but its all i got
 
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htpwn

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what he said.

although if it's true, is there any other buyer out there?

The Globe and Mail has been reporting for a while now that Rogers is not interested.

Talk that Rogers Communications decided to get back in the hunt for the Ontario Teachers' Pension Plan's majority share of Maple Leaf Sports and Entertainment Ltd., was dismissed by a source close to the situation.

http://www.theglobeandmail.com/spor...nterested-in-mlse-source-says/article1972617/

As for Bell, Shaw, etc., Simmons' article is the first I've seen of it.
 
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