Leafs and Jays. Rogers and Cash.

by Tom Dakers on Dec 9, 2011 2:22 PM EST in Toronto Blue Jays Opinions

So Rogers and Bell got together to buy most of MLSE, each paying $533 million for 75% of the team, shared equally, while Larry Tanenbaum's share of the team goes up from 20% to 25%. What does it mean? Well, it means you could own the Leafs, Raptors and all, for roughly 5 Albert Pujols. Which would you prefer to own, ten years of Albert Pujols or roughly 20% of MLSE?

What's it all mean? Most importantly, Pension Plan Puppets needs a new name. Beyond that, Rogers and Bell buy themselves a lot of content for all their various platforms. Why did the Teacher's Union sell? It always seemed to be strange that a Teacher's Pension Plan would own it, but it was a good investment. It will be a good investment for Rogers and Bell too. The Teachers just figured this was the time to get out and they got an offer they liked.

Does it mean anything to the Jays? Not really. Perhaps it waters down the 'special relationship that RSN had with the Jays, but I doubt we see much difference on the Sportsnet channels. Sportsnet Connected always opens with hockey stories anyway. We'll still get Jays games on RSN and and Jays Connected.

Is that why Alex was talking about 'payroll parameters'? Nah, No way was Alex in the loop about the sale a week before it happen. He is several steps away from Rogers. Alex always has said that they wouldn't be going after free agents until they were close.

There was no way Alex was going to out bid 10 years, $250 some million to bring Albert here, he just got rid of one bad contract, why would he want another. He's not going to be signing Prince Fielder, at least not right now. It would take $200 million to get Fielder right now. Fielder won't sign for less, at least until he and his agent are sure there isn't a contract like that out there. Maybe in a few weeks Fielder will find that he won't get that and then Alex can see if 5 to 7 years will get him.

The money that Rogers is spending on MLSE isn't coming out of the Jay's budget. Paul Beeston said that payroll could go up to $150 million, but we knew that wasn't going to happen in one off-season. We knew if would happen over a few seasons. Meanwhile, Alex would build the team up form the bottom. He's not going to try to take a short cut that will limit his options in the future when he figures to contend year after year. Alex wasn't going to give anyone a stupid contract before this purchase, he won't be after it either.

The deal doesn't mean that Blue Jay (or for that matter, Maple Leaf) ticket prices will be going up, in a hurry, so that Rogers can make up the money in a hurry. A lot of thought goes into ticket pricing. They want to find the price that will make the most money. They already know how to get as much money out of our pockets as they can, raising prices won't help them do that.

Rogers (and Bell) are smart enough to keep fairly hands off on the sports side of the teams. I can't see them replacing front office people with the Leafs. They won't be changing things with the Jays. If Alex feels he needs more money, just like before, he'll have to make the case to them, just like before.

Rogers doesn't expect the Jays to pay for this purchase, they wouldn't have bought MLSE unless they thought it could pay for itself (and more).

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Really the only thing this will mean for the fans of the respective teams is the distribution of content on the sports channels that for the most part are widely available across the country.

Although now, since the two big boys are working together on this, how easy would it to build a NESN/YES type network to feature Toronto Sports?

Toronto Sports Network

hmmmm wait a minute…

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by JohnnyG on Dec 9, 2011 2:30 PM EST reply actions 1 recs

they said the aren't going to do that

rogers ceo said he wants sportsnet to be thee source for canadians for sports, and bell wants tsn… so that will drive the “competition”

Probably just said it to make the government happy

Rent this for cheap!!

by Bowling_Guy25 on Dec 9, 2011 3:11 PM EST up reply actions

Riiiiiiight

WINK WINK

I think you'll find I'm universally recognised as a mature and responsible adult.
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by JohnnyG on Dec 9, 2011 3:18 PM EST up reply actions

“we will be racing to distribute the content, thats competition!!”

yeah sure, both offer it on their mobile service probably starting tomorrow. Big whoop. people will get both.

Rent this for cheap!!

by Bowling_Guy25 on Dec 9, 2011 4:23 PM EST up reply actions

as long as I can still get free streaming of Jays' games I don't mind...

"Words ought to be a little wild for they are the assaults of thought on the unthinking." (J.M Keynes)

by HESS2479 on Dec 9, 2011 2:46 PM EST reply actions

Seriously, though

Voice of Reason tells me it has nothing to do with the Jays (money flow-wise). One has to have faith in Voice of Reason…

"Words ought to be a little wild for they are the assaults of thought on the unthinking." (J.M Keynes)

by HESS2479 on Dec 9, 2011 2:47 PM EST up reply actions

Per Keith Pelley

That’s certainly staying, and Leafs/Raptors/TFC games are probably coming to RoD Online next season

Loss Aversion | Appeal to Probability | Appeal to Authority | Winner's Curse

by Gerse on Dec 9, 2011 3:01 PM EST up reply actions

let me put it in bold

get free streaming of Jays’ games I don’t mind…

RSN is not free. If it was, Rogers might have a bit less heavy in the pocket….

"Words ought to be a little wild for they are the assaults of thought on the unthinking." (J.M Keynes)

by HESS2479 on Dec 9, 2011 3:08 PM EST up reply actions

Didn't realize how free you meant

I was treating cable as a sunk cost

Loss Aversion | Appeal to Probability | Appeal to Authority | Winner's Curse

by Gerse on Dec 9, 2011 3:42 PM EST up reply actions

Any word on that?

Follow me @Minor_Leaguer

by Minor Leaguer on Dec 9, 2011 3:13 PM EST up reply actions

I think that Jays get a financial bump...

Now that both Rogers and Bell are owners of MLSE they’ll likely split the Leafs/Raptors content. So Jays become the difference maker in the RSN/TSN wars, a contending Jays team in the summer/fall could help RSN close the gap. Another substantial increase in Jays TV ratings, something similar to 17% for 2010/2011, would give RSN a leg up before the hockey season starts.

by voislav on Dec 9, 2011 2:54 PM EST reply actions 1 recs

Here's to hope!!

That’s an extreme best-case-scenario, but I’m an optimist…

"Words ought to be a little wild for they are the assaults of thought on the unthinking." (J.M Keynes)

by HESS2479 on Dec 9, 2011 3:10 PM EST up reply actions

Any word

on how they’re actually going to broadcast the games? Who’s going to have broadcasting rights? I heard radio broadcasts will get split 50/50 between FAN and TSN radio. Not sure what that means for talk640…I’m pretty sure that was the only thing they had really… It will be interesting to see how everything gets distributed.

by asalamon on Dec 9, 2011 3:23 PM EST reply actions

nope

its just day 1, won’t see changes until next season, and official talk will come later, they said in the press conference they just want to celebrate and such today.
The real question will be who wins HNIC when CBC’s contract expires in 2014. That will be a sad, sad day.

Rent this for cheap!!

by Bowling_Guy25 on Dec 9, 2011 4:22 PM EST up reply actions

Most importantly, Pension Plan Puppets needs a new name.

Actually, it could technically stay:

Through a co-investment arrangement with Bell, the BCE Master Trust Fund, an independent trust that holds and manages pension fund investments serving the pension obligations of BCE Group pension plan participants, will contribute $135 million toward the MLSE acquisition. The total investments by Bell and the BCE Master Trust Fund equal the 37.5% equity interest to be acquired by Rogers.

Link.

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by Frag on Dec 9, 2011 5:06 PM EST reply actions

Our friend Richard Griffin is hitting the panic button

http://www.thestar.com/sports/baseball/mlb/bluejays/article/1099733—griffin-jays-could-become-afterthought-in-rogers-empire?bn=1

I disagree entirely with this article, given the independence of the baseball season from the hockey season. Griffin suggests that our recent roster activities (acquiring Santos rather than signing a “proven” closer, not aggressively pursuing Darvish or Fielder though this remains to be seen) are signs that AA has been told to tighten the belt and cut spending. I have no idea where Griffin gets the idea that this represents a shift in long-term strategy as AA’s plan has always been to build slowly and he has repeatedly restated that he will not take shortcuts that will compromise our future. Thank you Griffin for embodying the definition of old school baseball establishment.

by No Way Jose on Dec 9, 2011 5:41 PM EST reply actions

Griffin senses the general readership changing their opinions to a win now strategy. Hence he is getting out there quick

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by JohnnyG on Dec 9, 2011 5:44 PM EST up reply actions

Oh no!

A company with something like $13B in annual revenue, of which maybe $200M comes from the Blue Jays just added another couple hundred million in annual revenue. The horror!

What a pile of drivel – Griffin should focus on baseball where he has some expertise (?) rather than the business side where he’s clearly out of his depth.

by MjwW on Dec 9, 2011 5:48 PM EST up reply actions

To Wit:

With the all-consuming goal of maximizing profits on your sports properties, the real reason you should be in the sports biz — actually winning your league — is inevitably dulled. The important demographic isn’t owning a Rogers bundle in order to see a World Series. They are already on board. It’s the 162 games of content that matters more than a World Series. That’s guaranteed content.

Right, because as the Yankees, Red Sox, Lakers, etc have shown, “actually winning your league” is really bad for profits. All those extra fans, extra eyeballs watching the content, brand value, etc…worth nothing.

by MjwW on Dec 9, 2011 5:52 PM EST up reply actions

Richard Griffin IS - GASP - Correct!

I haven’t read his article – I loathe the guy – but…

The Jay’s are now a notch above wrestling and women’s curling as far as Rogers is concerned. Even when they didn’t own the Leafs their Jays coverage was superficial and pedestrian.

The hockey team and the basketball team are both in cost controlled leagues – soccer is – well – a half step up from mud wrestling. Now the Jays are TOTALLY on their own -in a cost uncontrolled sport where – shudder – GREAT players cost $254 million for 10 years . Rogers will be DELIGHTED to get it’s 500,000 Canadian viewership (and the obscene advertising revenue that generates) while making sure the team doesn’t stink the place out. The NEW Roger’s motto will be: “Profits Galore in the AL East when you finish at least 3rd three of every 5 years!”

What does this mean to us – bat shit crazy Jay’s fans? Simple – it means – as Beeston and AA are saying – COME TO THE FU*KIN’ Rogers Center and THEN we’ll up the the payroll (when the “time” is ready) to the 120 – 150 range. They will DO this when a) We come out to the games and b) when AA pulls magic plays like he’s continuing to do by acquiring: Santos, Lawrie, Escobar, Rasmus, Morrow, d"Arnaud, etc., etc.

I have GREAT FAITH in b) not so much in a).

I live on the harbour waterfront in Nanaimo, BC – as I’m writing this I’m looking out on a ship loading lumber – just behind it sits the cruise ship terminal. IF – I lived in TO, Hogtown, The Big Smog – ya I’d be a season’s ticket holder – here – sigh – all I can offer is my viewership of whichever Rogers channel Roger’s decides to broadcast the games on.

The only possible flaw I can see in the Roger’s game book is that AA is a truly a spectacularly gifted, non-linear thinking, genius who despite the restraints Roger’s imposes will continue to acquire a few serious players every year forcing the Jays to actually get competitive despite Roger’s contentment to be Meh. Hopefully – AA will give us a good enough team – despite Rogers – so that the Toronto – Hockey besotted masses – will actually turn up for Jay’s game and FORCE the Jays to accept the increased profit by investing a slight bit more to put us into the play-offs.

IF – AA was not in charge of the ship at this time – I would be in downright despair.

AA – PLEASE – stay well – your Jay’s Nation needs you. Now – more than ever!

by Mylegacy on Dec 9, 2011 6:52 PM EST up reply actions 1 recs

What more do you what RSN to do?

They show every game, they do Jays Connected before every game. I’m sure, if they figured they could make a dollar off a 24 hour Jays channel, they would throw it out there. Their webpage has got Shi Davidi and Tao, I really have no problem with them.

I blog, therefore I am.

by Tom Dakers on Dec 9, 2011 7:38 PM EST up reply actions

Tom

RSN’s coverage of the Jays could include a weekly half hour (during the season) on the minors – it could perhaps during the season – NOT cover hockey before it covers the team it OWNS. That kind of thing. It leads the fans to think EVEN the team that owns the freakin’ Jays thinks they’re an afterthought.

BUT – my real concern is not their TV stations but their corporate BELIEF that the “profit” they know (by hardly spending) is better than the “profit” they might get by putting themselves ahead of the curve.

I do believe that as the fans LEAD in their interest in the Jays (thanks to AA) – by putting bums in seats (and watching even more TV etc.) – Rogers WILL increase their spending on the team BUT NEVER will Rogers LEAD in spending. It’ll spend SOME of what it’s made — but NONE on what might be.

by Mylegacy on Dec 9, 2011 9:30 PM EST up reply actions

holy moley, too many random capitalized letters. FLYERROB is that you?

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by pho king awesome on Dec 12, 2011 12:58 AM EST up reply actions 1 recs

i agree with Tom

I have no issues with the Jays coverage or anything else when i actually think about it. Also, they have outspent most other teams in the international and regular drafts, they spent money to lock up romero, lind, bautista, etc. but the difference is they try to spend sensibily. Yesterday, the Rogers CEO had some comments that they want to see Championship level organizations across their sporting empire. All is not lost Jays Nation… Rogers will spend appropriately when the right piece presents itself and AA actually wants that specific piece – Perhaps we’ll see this week with Darvish!!!

by TrueBlue4Ever! on Dec 10, 2011 8:46 AM EST up reply actions

I (mostly) disagree with your fundamental premise

Basically, you see Rogers as happy to take whatever profits it can off of having a mediocre team which doesn’t cost much. I disagree, because that means not taking advantage of the large market opportunity in Toronto. Yes, they make a good buck of 500,000 people watching, but it would be far more profitable to have a lot more people watching, with a better team. Rogers raised payroll before, when the GM thought the team was ready to contend with some free agent acquisitions to push them over.

Here’s where the mostly caveat came in – Ted Rogers has died. Rogers was a visionary, he understood the opportunity the Jays presented in 2000 back when media convergence was first happening and failing, and he stuck to it. He agreed t higher payrolls, but he’s no longer around, and it’s possible that the current braintrust (Nadir Mohamed et al) doesn’t see what Ted Rogers saw. However, the fact that they bought the Leafs would seem to indicate that this isn’t the case, since they’re doubling down on owning sports franchises.

by MjwW on Dec 9, 2011 7:49 PM EST up reply actions

MjwW

Actually – I see the Leaf’s purchase as PROOF they’re Jay’s acquisition was (is) primarily for the “content” it provides them. In fact I’d bet my left arm that very soon they announce that they’ve also bought the Bills -so they can help destroy the CFL and diminish the one area that TSN had a Canadian content niche.

Not that I’m a cynic…

I DO expect Rogers to invest in the Jays as they see it prudent to do so – and as I allude to in my piece you’ve responded to – I think there is a chance that AA’s talent and skill might just get us enough success that EVEN Torontonians get interested enough by their success that EVEN Rogers can’t ignore the situation and then they’ll invest – but ONLY because they see a higher payroll as being guaranteed to be covered by bums in seats.

To me – it’s a question of Bums and Seats. IF – Toronto will come – they WILL invest. AND – I think AA may just be the man to get Toronto to come! I sure hope so. As I said – AA stops me from despair…AA and the occasional wee dram.

by Mylegacy on Dec 9, 2011 8:20 PM EST up reply actions

Rogers' purchase is likely content driven

It makes a lot of sense for Rogers to purchase Toronto’s major sports teams given that now they have all of the Jays, Raps and Leafs content they want. However, I do not think that this means that Rogers has no motivation to build a winner.

A strategy of fielding losing teams and exploiting the profits may work for a team like the Leafs where the rabid fan base sells out every game regardless of where the team is in the standings and how expensive the tickets are. In contrast, the Jays have a much smaller fan and less loyal fan base. While it makes sense to purchase the sports teams for the multimedia content, it makes little sense for the Jays to simply tread water at this level. They simply don’t make enough money to justify sitting pat, whereas the Leafs (pre-salary cap) have reached a point of diminishing returns where further investment would not improve earnings.

by No Way Jose on Dec 9, 2011 11:30 PM EST up reply actions

I wonder if talks of a second Toronto team

is why the Pension Plan sold now. If a second team does come to the city, the Leafs will have competition for fans, and that might hurt their bottom line.

by c-square on Dec 9, 2011 6:08 PM EST reply actions

Honestly

I think a second team in Toronto would have a Clippers/Lakers, Rangers/Isles relationship with the bigger brother. I don’t know if the carve-out of market share would be greater than 10-15%. But it may be enough to scare them off. Perhaps they have another venture (or ventures) lined up for which they are confident they can get a better ROI.

by msgg139 on Dec 9, 2011 6:12 PM EST up reply actions

What does it mean?

Methinks not much. I think the Jays will continue to be run as (more or less) a standalone entity. Don’t know how much cash Rogers is pumping in at this time and it’s a bit far-fetched to expect that because the parent company is a billion-dollar enterprise means that there’s unlimited resources to the Jays/Leafs/whomever beyond their own revenue streams.
It’ll be interesting to see what the CRTC thinks of this deal

by msgg139 on Dec 9, 2011 6:09 PM EST reply actions

Side note

This deal is most likely the death knell of the CBC.

thisrighthere!

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by TonyFernandezSavedMyLife on Dec 9, 2011 9:00 PM EST reply actions

who gets to air the Leaf playoff games?

funny to see Leaf’s and playoffs together in the same sentence but hypothetically who gets those?

Excuse me, do these effectively hide my thunder?

by T.Dot_Bronco on Dec 9, 2011 9:27 PM EST up reply actions

I'm not sure the the playoff rights are sorted out yet

but if they are i imagine cbc has them

Rent this for cheap!!

by Bowling_Guy25 on Dec 9, 2011 10:44 PM EST up reply actions

side note

does that mean my tax dollars won’t go towards Rick Mercer’s limosine service anymore, or Peter Mansbridge’s exfoliation sessions?

by TrueBlue4Ever! on Dec 10, 2011 8:51 AM EST up reply actions

Teachers have a pretty sweet yet unsustainable pension plan

The unsustainable part being the reason for the sale

Excuse me, do these effectively hide my thunder?

by T.Dot_Bronco on Dec 9, 2011 9:28 PM EST reply actions

Doubtful of Blue Jays offseason moves are related to deal

AA may have a somewhat limited budget dictated to him by Beeston and may have been told that he could not spend above say 75 million however i don’t believe that he would have any idea of what Rogers was doing. Rogers is a multi industry conglomerate. AA would have no more idea about what the CEO and Board of Rogers is planning to do then he would know what the future network plans are for Rogers Wireless. To take it further, however i doubt Rogers would spend less money on the Blue Jays so that they could have sufficient capital for this transaction. The Toronto Blue Jays have one of the richest owners in all of MLB and i think it is far fetched to think that Rogers would have to tighten its belt in regards to the Blue Jays so that money was available for them to make a 650 million dollar purchase. If Rogers are going to be cheap owners with the Blue Jays i don’t think it has anything to do with their acquisition of MLSE. If anything, Leafs fans should not worry about their new owner because the current NHL maximum team salary cap ($64.3 million) is actually around what the Blue Jays current salary is.

by Sean Coleman on Dec 9, 2011 11:30 PM EST reply actions

wow

sure are a lot of armchair media moguls out there.

Who knew?

the Blue Jays are going to be JUST fine… don’t worry too much about bean counters at Rogers HQ, Beeston and AA are running the Jays and i think we’ll see them open the till for Darvish this week (fingers crossed)

by TrueBlue4Ever! on Dec 10, 2011 8:49 AM EST reply actions

Only fear I have is the death of HNIC when the current contract is up. It’ll be a real shame, the death of a Canadian tradition. The combined money and media power of Bell and Rogers will make the creation of an MLSE network much easier, as they can build it off Leafs TV and maybe RSN. The good news is there will he a tonne of content for it: Leafs, TFC, Marlies, and Raptors (or not please). Don’t think the Jays will be in it but that would just mean RSN would have full coverage. AN MLSE network

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by Redonred on Dec 10, 2011 11:33 AM EST via mobile reply actions

Sorry mobile posting issues

by Redonred on Dec 10, 2011 11:36 AM EST via mobile up reply actions

they said leafsTV and raptorsTV are most likely going to be dropped

and HNIC will “exsist”, just not on CBC. Talk is CTV is the favourite to get it, with Citynews also being a contender for it.

As posted above, they said they have zero plans to make one network, each wants their own spotsnetwork to be the most watched in canada, and that will fuel the competition (makes the government happy)

Rent this for cheap!!

by Bowling_Guy25 on Dec 10, 2011 11:42 AM EST up reply actions

by Redonred on Dec 10, 2011 11:35 AM EST via mobile reply actions

Rogers and BCE teaming up to buy MLSE is likely a grab at a positive cash flow entity from a willing seller that will help them in their overall telecom and media plans as the Canadian landscape slowly moves to opening to foreign investment and ownership in the Canadian telecom industry, given the public’s current dislike of the Canadian oligopoly in the telecom sector and the federal goverment’s small inferences to movement on that front. I don’t think this transaction has any impact on the Jays in the short term and medium term. DISCLAIMER – This is my opinion only and I have no actual knowledge on this subject.

by jay_tee_slash on Dec 10, 2011 4:11 PM EST reply actions

Actually

The point about acquiring MLSE as a buffer to possible (foreign) entrants into the telecom sectors in the near to medium term is pretty compelling – probably one of the most compelling strategic arugments I’ve seen. Lock up really enticing domestic (“premium”) content to maintain market power and the effective duopoly even if the legal framework that currently supports it is removed or partially removed, essentially dissuading foriegn capital from entering.

by MjwW on Dec 10, 2011 5:01 PM EST up reply actions