Rogers considers selling Toronto Blue Jays

Company says sale could free up capital for its main communications businesses

Rogers Communications Inc. is considering the sale of assets such as baseball’s Toronto Blue Jays and its stake in a smaller cable and media company to free up capital for its main communications businesses.

The media giant’s chief financial officer Tony Staffieri said Tuesday at an industry conference that the company is looking for ways to “surface value” from the Blue Jays — which he said is a “very valuable asset for us that we don’t get full credit for.”

He didn’t discuss who might buy the team, or if a deal would include the Rogers Centre, or what they would be worth.

READ: Police recover Blue Jays rings, including 1992 World Series ring, stolen in 1994

“To be clear, there isn’t anything imminent that we are about to announce, but we’re certainly looking at the alternatives. Again, would like to get the content without necessarily having the capital tied up on our balance sheet,” Staffieri said.

Aravinda Galappatthige, an analyst who covers Rogers for Canaccord Genuity, writes that the issue of assets sales has been raised before but Staffieri’s comments are the most explicit to date.

He estimates that the Blue Jays would be worth about $3.20 per share of Rogers, based on an estimated value of $1.65 billion for the team.

But Galappatthige notes that Rogers has other non-core assets including a 37.5 per cent interest in Maple Leaf Sports and Entertainment, which owns the Toronto Maple Leafs hockey team and Toronto Raptors basketball team, and the Rogers Centre — worth $200 million to $400 million.

In total, he estimates Rogers has non-core assets that could be worth close to $5 billion or $9.70 per Rogers share.

“However, we highlight that while asset sales are being considered at a high level, we do not believe there any imminent deals in place at this time,” Galappatthige writes.

Staffieri said the company is currently going through its budgeting process for 2018 and the focus will be on revenue growth and better margins at its wireless and cable divisions.

Staffieri made the comments during an onstage interview at the UBS Global Media and Communications conference in New York, according to transcripts of the event provided by Thomson Reuters.

Rogers (TSX:RCI.B) has previously indicated it is exploring ways to get more value from its portfolio of assets, including the Jays, but Staffieri’s comments in New York were more specific.

He said the company still wants rights to sports programming — which is core to the company’s media business — but doesn’t need to own a team to have that, pointing to the company’s 12-year deal with the National Hockey League.

“Relative to our overall asset portfolio, media is small,” Staffieri said.

But he said sports content continues to have “healthy” margins and can complement the Rogers wireless and cable operations as well.

“Our focus in media will continue to be on the sports side of it. So don’t expect any type of expansion on the media side, other than continue to monetize the sports assets that we have,” Staffieri said.

As for the company’s investment in Montreal-based Cogeco (TSX:CGO) and Cogeco Communications Inc. (TSX:CCA), a smaller cable and media company based in Montreal, Staffieri’s said there’s “probably better use” for that capital.

“There were some strategic benefits that we had hoped for with Cogeco and those seem to be further and further away,” Staffieri told the UBS conference.

Galappatthige said Rogers’ share in the two Cogecos would be worth about $2.98 per share, for about $1.53 billion.

“While we would expect an orderly sell-down in its Cogeco holdings, this could put pressure on Cogeco Inc.’s and Cogeco Communications’ share prices and serve to remove any takeout premium currently imbedded in their stock prices,” he concluded.


Like us on Facebook and follow us on Twitter.

Just Posted

Peachland councillor announces bid for mayor

Keith Thom says after four years on council, he feels he’s ready

Defence minister in Kelowna to talk to flood relief soldiers

Canadian Army has 300 soldiers on the Okanagan and Grand Folks areas to help with flood relief

Kelowna’s Fat Cat Children’s Festival gearing up for its 28th year

The popular two-day kid-focused festival will take place in Waterfront Park

World of Wheels spins through Peachland

World of Wheels brings thousands for a day of family fun

Kelowna’s Shadow Ridge Golf Club beats the water

They pitched in and managed to get the upper hand on a soggy situation

VIDEO: Canadian Forces help flood-ravaged Grand Forks residents heal

Sgt. Bradley Lowes says the military is used to dealing with traumatic times

Couple survives being buried in mudslide on B.C. highway

The couple, from Saskatchewan, were en route to Nelson when a tree fell in their path

Kelsey Serwa brings back KSer golf tourney

Tournament at Gallagher’s Canyon Aug. 24 to benefit graduating high school athletes

‘So grateful:’ Injured Bronco hockey player glad he’s alive, works on recovery

Ryan Straschnitzki was badly hurt in the accident: a spinal injury, broken ribs, a broken collar bone, and punctured lung

PHOTOS: Floodwaters rise and fall in Grand Forks

The flood-ravaged Kootenay-Boundary region begins to heal

Martin Mars waterbombers’ firefighting days are done

Wayne Coulson said his company still hopes to find a new home for the vintage aircraft

Cat stuck on telephone pole in the South Okanagan rescued

FortisBC rescued a cat stuck on a telephone pole in Kaleden

NHL playoffs weekly roundup

Vegas Golden Knights have done the impossible and have a chance at hoisting the Stanley Cup

Kelowna sailors stay the course at COSA Regatta

38th Annual Springtime Regatta was held over the May long weekend on Okanagan Lake.

Most Read