Price And Relocation Preventing Sale Of Maple Leaf Sports And Entertainment
TORONTO - JANUARY 13: Michael Santorelli #53 ...
http://blogs.forbes.com/mikeozanian/...entertainment/
For a while now the Ontario Teachers’ Pension Plan has been interested in selling its controlling interest in Maple Leaf Sports and Entertainment, the parent company for the Air Canada Centre, NHL’s Maple Leafs, NBA’s Raptors, and Toronto FC of Major League Soccer.
There are two reason why a deal has yet to happen:
The first is price. While some sports bankers have said MLS&E could go for over $2.2 billion if sold to a media company like Rogers Communications that can leverage all the sports programming, a person who saw a financial analysis of MLS&E last year said the combined assets were valued at $1.5 billion. The $700 million premium sought by the fund is too rich.
The second is relocation. There a good possibility that Phoenix Coyotes or another struggling NHL team could be bought by Research In Motion CEO Jim Balsillie and relocate to Hamilton, in which case the billionaire would have to pay a territorial rights fee to the Toronto Maple Leafs. The timing and amount of that payment is making the sale of MLS&E more complicated because Ontario Teachers’ does not want to leave $70 million or so on the table.