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

Legion bell prank hits sour note

Anger erupts after Summerland Legion member removes bell from Peachland Legion

Former optician guilty of assaulting minor

Sex offence took place in Salmon Arm more than 25 years ago

Kelowna Parkinson’s SuperWalk team donates to local shelter

Good Vibrations donated $300 to Inn from the Cold

Video offers aerial view of future Salmon Arm

Ministry of Transportation and Infrastructure shares digital rendering of Salmon Arm West project

No snow, mild temperatures for Okanagan-Shuswap

You shouldn’t need your shovels anytime soon

SAR score new machine

Vernon Search and Rescue win Kioti Tractor contest

Vehicle with dog inside stolen from Oliver gas station

A black Honda CRV was stolen from the Oliver Chevron early Sunday morning

Site C decision coming Monday

Premier John Horgan to announce fate of dam project at B.C. legislature

California couple name daughter after Revelstoke

Revy Elle Atashroo was born on Nov. 27. Her name honours the town her parents loved exploring.

VIDEO: Vancouver Whitecaps acquire star striker Kei Kamara

Kamara has 103 goals and 39 assists in 298 appearances over 11 Major League Soccer seasons

Smartphone pedometers underestimate steps, but valuable health tool: study

UBC researchers found the iPhone underestimated steps by 21.5 per cent

VIDEO: ‘Last Jedi’ premiere kicks off with droids, Daisy Ridley

Latests Star Wars film premiered in style ahead of Dec. 15 theatre debut

UPDATE: Poor ventilation likely cause of carbon monoxide incident at B.C. farm

All 42 patients have been released from hospital, according to Delta Fire

Most Read