Confirmed with Link: Tannenbaum to sell a portion of his shares of MLSE holdings to OMERS

[Stephen]

I believe the evaluation was 8 Billion USD for the whole thing. 2 Billion USD would be the sale price.

Oh ok I just re-read the Rick Westhead tweet. Yeah, $8 billion enterprise value seems a bit low.

 

[justashadowof]

Why wouldn't Bell and Rogers buy this stake once a valuation is established?

 

[keonsbitterness]

Why wouldn't Bell and Rogers buy this stake once a valuation is established?

They don't really need to since together they own over 50% and they're contractually obligated to vote the same way.

 

[thewave]

Wonder what portion of that growth is the 200% increase in the 2016 NBA media deal.

He is apparently selling part of his 25%, not all of it.

Oh I didn't know that, maybe he wants to settle debt etc. Probably thinks he can sell 20%, keep 5% and still control the show in agreement/partnership with OMERS.

These complicated arrangements are why the teams a basketcase though.

They don't really need to since together they own over 50% and they're contractually obligated to vote the same way.

Right they have closed door fits between the two parties. I bet those meetings are heated

 

[justashadowof]

I still say the inevitable outcome of this Bell/Rogers joint ownership will be a split resulting in a second team in Toronto. And I bet it just happens out of the blue. Gary Bettman (or his successor) will hold a press conference announcing a Toronto expansion team with the ownership already worked out behind the scenes.

 

[JT AM da real deal]

Tanenbaum’s share is with $8 billion. He owns 25% so that would imply the MLSE empire is worth a total $32 billion, no?

Maybe it is being valued off of cash flows rather than individual assets i don't know ..

 

[JT AM da real deal]

Why wouldn't Bell and Rogers buy this stake once a valuation is established?

That is da right question .. my guess Larry already approached at his number on his same terms and there was no interest so he waited out da timing clause on them .. he must be liquidating for health reasons/family estate planning and he choose OMERS as partner as Kilmer works with them on several real estate plays already and together they still control mlse

 

[OddyOh]

I still say the inevitable outcome of this Bell/Rogers joint ownership will be a split resulting in a second team in Toronto. And I bet it just happens out of the blue. Gary Bettman (or his successor) will hold a press conference announcing a Toronto expansion team with the ownership already worked out behind the scenes.

I wouldn't call it inevitable, but I like where your head’s at. Rogers gets the new team, Bell gets the Leafs, and let the team with the best broadcasts (and on ice product of course) win!

 

[keonsbitterness]

I still say the inevitable outcome of this Bell/Rogers joint ownership will be a split resulting in a second team in Toronto. And I bet it just happens out of the blue. Gary Bettman (or his successor) will hold a press conference announcing a Toronto expansion team with the ownership already worked out behind the scenes.

I hope not. 32 is too many teams as it is.

 

[many76]

I wonder if Larry was actively looking to sell a piece of his share or Omers came to him, if he was actively trying could he have found a wealthy person to buy instead a soulless corrupt pension plan

 

[thewave]

I wonder if Larry was actively looking to sell a piece of his share or Omers came to him, if he was actively trying could he have found a wealthy person to buy instead a soulless corrupt pension plan

What difference would it make. The two soulless telecom and media giants have the majority anyways. It's not like they actually care when they are mostly worried about the corporate images of the parent companies. The team itself always profits, that's the beauty of this lazy investment for Bell and Rogers. It's a printing press.

 

[TheDoldrums]

I still say the inevitable outcome of this Bell/Rogers joint ownership will be a split resulting in a second team in Toronto. And I bet it just happens out of the blue. Gary Bettman (or his successor) will hold a press conference announcing a Toronto expansion team with the ownership already worked out behind the scenes.

I hope we get Bell in the divorce I guess

 

[GoonieFace]

I hope not. 32 is too many teams as it is.

Give it some time and Winnipeg and Calgary will be toast. No players want to be there, how can they compete. Bettmans vision of destroying Canadian franchises is getting close.

 

[ACC1224]

I wonder if Larry was actively looking to sell a piece of his share or Omers came to him, if he was actively trying could he have found a wealthy person to buy instead a soulless corrupt pension plan

Yeah, Melnyks daughters might be looking to get back in.

Have you found MLSE to be on the cheap side?

 

[Mckay]

As a member of OMERS, I think it’s neat that a tiny portion of the sale price will be with my money.

 

[Menzinger]

I don’t know if we need a 3-5 year rebuild in the near future.

I don’t know if a rebuild would be financially damaging to the Leafs other than lost playoff revenue.

I don’t know if your year to year hockey related revenue even for the Leafs is proportional to franchise and conglomerate level valuations.

Just given the scale of the money involved the hockey stuff just doesn’t seem like a big deal.

Don't undercut prestige to a corporate board. Nobody in their position wants to say they own a losing team.

There's a reason why we've only seen one through the draft rebuild in multiple decades in this city. I

 

[Stephen]

Don't undercut prestige to a corporate board. Nobody in their position wants to say they own a losing team.

There's a reason why we've only seen one through the draft rebuild in multiple decades in this city. I

Eh, I think a rebuild is just like anything else. You just have to sell it to your fanbase and frame it the right way and hopefully you have the right personality to push it to the board.

 

[ACC1224]

As a member of OMERS, I think it’s neat that a tiny portion of the sale price will be with my money.

Now we know who to blame.

 

[Squiffy]

$8 billion and this team has a problem with firing coaches and paying out their contracts? SN and TSN have to provide an inferior product while laying off talent and staff? This whole team, from ownership down to its core four are so f***ing unlikeable.

I mean, these things don’t really go together. BCE (and Rogers) and their long term strategy for media assets are not related to their MLSE holdings. In the least.

For the other part, not spending money on the team is not a legitimate complaint to lob against MLSE.

 

[thewave]

I mean, these things don’t really go together. BCE (and Rogers) and their long term strategy for media assets are not related to their MLSE holdings. In the least.

For the other part, not spending money on the team is not a legitimate complaint to lob against MLSE.

The leafs spend the most because operating expenses go against what they give to the league from their profits. Pretty certain on that. So it's like, we can have the best and more of everything or just give more to Arizona so they can get more of what you're not allowed to keep lol

Basically we do it to keep more of our fans money in Canada rather than subsidize the US teams.

 

[Squiffy]

I mean I’d disagree on the motivation there, but either way, the end result is the same right? For whatever complaints we have about MLSE, and there’s no shortage, spending on the team isn’t a legit one.

 

[TMLBlueandWhite]

Given the choice between selling the team and firing his friends, it appears Tanenbaum has chosen to sell the team.

It looks like this geriatric billionaire has given up on the dream of winning a cup. It really is all about the money. If he actually cared about winning the cup he would have done what's right for the team, the fans, and the city of Toronto itself.

Fire everyone from Shanahan on down.

Instead the clown car calamity known as the Toronto Maple Leafs continues to give fans a kick in the nuts.

Is OMERS buying part of the team because they want to bring a Stanley Cup to Toronto? Is that really why they are interested in becoming part owners? To win a Stanley Cup?

I'd really like to see their CEO look in a camera and say that with a straight face.

I understand hockey is a business. And businesses are in business to make money. Not to win cups.

They only care about you as much as your landlord does.

But at some point you would think somebody in the organization would remember they were a sports team still. Maybe even think about doing what's right for the fans. And for the city of Toronto itself.

We're the ones paying for it all.

 

[al secord]

That would be great but I don't think the lack of an NFL team here has anything to do with money.

I'm not up on NFL governance, but wouldn't he have to cut ties with MLSE in order to own an NFL team. My understanding is that they only allow for individual ownership.

 

[Racer88]

His share alone is worth 8 billion?

Nope. Total company evaluation is 8 Billion

 

[sxvnert]

No players want to be there, how can they compete

A full rebuild will usually solve those problems. Unfortunately neither ownership group seems to comprehend this.