Weekly "Focus" and Let’s Go Blue Jays!

The surprising surge of the Toronto Blue Jays have them in first place as we head into next week’s all-star game in Atlanta. No doubt attendance at the Rogers Centre will continue to improve if the team continues to play at this level.

 

This is good news for team owner Rogers Communications* who has assembled an impressive roster of sports related properties:

 

• 75% of Maple Leafs Sports & Entertainment (MLSE) owner of the Toronto Maple Leafs, Toronto Raptors, Toronto FC, Toronto Argonauts, Toronto Marlies
• 100% of the Toronto Blue Jays
• Sportsnet TV and radio stations

 

After hitting a low of $32.42 in April, Rogers has rebounded to $44 (as of July 9^th) and now breakeven on the year (i). To learn more about Rogers, have a read of a recent research report from Tim Casey, the BMO Capital Markets analyst covering the company, and check out page 12 for a summary of recent sports team transactions.

 

There is speculation that Rogers may perhaps sell a stake in MLSE to private equity groups (they are allowed to sell up to 30%). Other rumours have them packaging the sports properties into a separate company that could be spun off in an initial public offering. Sports teams are big business and are attracting massive valuations – a majority stake in the Los Angeles Lakers basketball team just sold valuing the team at a record at US$10 billion, impressive considering the Buss family bought the franchise in 1979 for US$20 million.

 

This week’s "Focus" from our economics team is attached.

 

Have a great weekend and Go Jays Go!

 

Brad

Senior Portfolio Manager and Senior Investment Advisor