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  • U.S. investment company interested in MLSE

    I saw this scrolling across the BNN ticker at McDonald's when I was grabbing lunch.

    According to a report in Wednesday’s Toronto Star, Providence Equity Partners is looking at the Ontario Teachers' Pension Plan's 80 per cent stake in Maple Leaf Sports & Entertainment.
    Source

    I thought it was interesting that a company would be interested in MLSE during the lockout. I figured that it may be a sign that business people think that the outcome of the lockout will lead to franchises that offer a greater ROI. But then I remember that the Raptors are just one component of the MLSE sports conglomerate.

    I also came across this...

    banking sources familiar with the company dismissed the idea the parent of the Toronto Maple Leafs could wind up in the hands of a U.S. equity fund.
    is higher than the perceived market value, the banker said, and has what he calls an “ego premium” added to the price. The most desirable sports properties, such as the Maple Leafs, New York Yankees or Boston Red Sox, can have ego premiums because of the belief some buyers will be willing to pay more than market value for the cachet of owning them.

    However, the banker said, financial institutions or corporations have to answer to clients or shareholders and are interested only in paying market value.
    The EGO premium imo, (outside of the players and owners individual ego) is an interesting component that does play a role in the ongoing labour dispute.


    Another obstacle to any sale is MLSE chairman Larry Tanenbaum. He owns the other 20.5 per cent of the company and has the right of first refusal on Teachers’ shares. While Tanenbaum has never indicated his plans publicly, those close to him say he would try to buy Teachers shares if another offer were made.

    source

    what do you guys think, would the raps (and leafs?) be better off if the were owned by an individual majority owner like Tanenbaum as opposed to a majority owner that is larger entity like rogers or OTPP?
    "They're going to have to rename the whole conference after us: Toronto Raptors 2014-2015 Northern Conference Champions" ~ ezzbee Dec. 2014

    "I guess I got a little carried away there" ~ ezzbee Apr. 2015

    "We only have one rule on this team. What is that rule? E.L.E. That's right's, E.L.E, and what does E.L.E. stand for? EVERYBODY LOVE EVERYBODY. Right there up on the wall, because this isn't just a basketball team, this is a lifestyle. ~ Jackie Moon

  • #2
    ezz_bee wrote: View Post
    I saw this scrolling across the BNN ticker at McDonald's when I was grabbing lunch.



    Source

    I thought it was interesting that a company would be interested in MLSE during the lockout. I figured that it may be a sign that business people think that the outcome of the lockout will lead to franchises that offer a greater ROI. But then I remember that the Raptors are just one component of the MLSE sports conglomerate.

    I also came across this...





    The EGO premium imo, (outside of the players and owners individual ego) is an interesting component that does play a role in the ongoing labour dispute.





    source

    what do you guys think, would the raps (and leafs?) be better off if the were owned by an individual majority owner like Tanenbaum as opposed to a majority owner that is larger entity like rogers or OTPP?
    you know this may go against the common thought process people have... but I'd rather see the team owned by as strong and as wealthy an individual/conglomerate as possible. I think it offers stability to ownership.

    I think there is also a benifit to 'companies' owning teams as they tend to make more rational decisions than emotional ones. That may be both a good thing or a bad thing (eg. Dan Gilbert vs Mark Cuban). At the same time a team concentrating solely on the bottom line is not always what fans want (MLSE vs. Mark Cuban)

    I guess in the end it comes down to how 'good' and dedicated the owner would/will be. Someone who stuck their nose in enough to make sure things are going as planned, but not so much it gets in the way.

    Comment


    • #3
      An American owner might be just what the doctor ordered (from a hoops perspective). Less emphasis on hockey!

      Comment


      • #4
        I don't like it. I have zero fear in the team being moved because Toronto is such a great market and the economy here in general is better than in America right now BUT this is more or less a lateral move for the fans' interest at best. It's just one big faceless entity passing the ball to another big faceless entity.

        If they pay a premium to get MLSE who do you think could wind up paying for that? The fans. Whether it be via higher ticket prices or the team cheaping out on the roster or both. This is just a theory of course.

        Comment


        • #5
          I dunno really. I think a lot people think new ownership or a change of ownership is need/required but in my opinion the best ownership would be individuals for individual teams (eg. 1 person owns the Leafs, 1 person owns the Raptors etc..) I look at Boston as an example. In the last 11 years each of Bostons big four sports teams has won at least one league championship, all individuals who own each team. Bobby Kraft is somewhat an exception he owns both the NE Pats NFL team and NE Revolution MLS team but MLS is not a big four sport league. I think when individuals owns individual sports franchises in the same city they compete to have the greater fan base.

          Comment


          • #6
            GarbageTime wrote: View Post
            you know this may go against the common thought process people have... but I'd rather see the team owned by as strong and as wealthy an individual/conglomerate as possible. I think it offers stability to ownership.
            All things being equal, I would much rather have an individual own my team. There is something to be said for having a natural person be accountable for the organization as opposed to a bunch of nameless suits. GMs and coaches often take the fall but if they are hamstrung by cheap, indifferent or ineffective owners, then I would like to know who to properly blame. As for Tannenbaum specifically, I'm pretty sure if he had enough coin to get 100% of MLSE he would have bought out Teachers already.

            Comment


            • #7
              Such equity investors typically look to maximize their investments over a relatively lowhorizon. One of the ways is to break up the whole and sell the parts....and off they go. No emotional attachment. In this case howeverI understand this group have a position in the Yankees "YES" network so it maybe a larger play on the communications/content angle....one I thought Rogers or Bell would have been hot on.

              Comment

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