Podcast: Who's buying the Maple Leafs?
http://business.financialpost.com/2...leafs-and-the-commodity-correction-explained/
Summary:
- This is the third time that the Teachers have tried to sell their shares, this time seems to be serious.
- Tanenbaum is left with a predicament, either he buys the franchise or gets left marginalized by new owner. He is currently the Chairman of MLSE. Doubts new owner would allow Tanenbaum to continue to hold this position, which may entice him to sell to Teachers for a premium before any deal with a new owner goes through.
- Tanenbaum had a long standing partnership with Ted Rogers to buy the shares if it ever came to that, however with Ted's passing, he is currently looking for investors.
- She says that she had mused in the past that a Russian oligarch could come in and buy the franchise. "It's not without merit, they are the ones that are buying up sports franchises in North America and Europe, and they're paying very steep prices for them. So, there's a potential there."
- Only other Canadian enterprises that can buy this franchise are the big telecommunication companies. Shaw, Rogers, BCE, and Telus. Each one of them have done deals of late, who might take away some of their ability/willingness to make a large purchase. Do they need to own the team or just own the broadcasting rights?
- Rogers is under different management since Ted Rogers' passing. New management not "impulsive type, very methodical, very analytical, and sticks to core competences, which MLSE would not be for Rogers"
- BCE just bought CTV for $1 billion+, but still may be able to step in. Depends on the price and how they value it.
- Offering memorandums have not gone out yet, just initial expressions of interests.
- Are possibilities that you get a group of people, but NHL not a fan of that type of ownership. Wasn't really a fan of how ownership is currently structured now, prefers sole proprietor or an overwhelming majority owner.
- NHL is "very involved," one of the reasons bid books haven't come up yet is they are trying to sort out the various regulations that come with the purchase of sport franchises (not only NHL but NBA and MLS as well).
- Offering memorandum has been in the work for the last several months.
- Likely just as complicated, but not as nasty, as the previous sale of the team in 1994.
- A lot of backroom jostling in the company, even in the days it has been owned by OTPP/TD/Tanenbaum.
- Unusual for a pension fund to maintain an investment in companies like this for as long as they have.