🔊 Canadian Communications Company Solidifies Its Sports Empire

📰 TOP STORY
Rogers Communications Acquires Majority Stake In MLSE

This week, it was announced that Canadian media giant Rogers Communications closed a $3.45 billion deal to acquire 37.5% of Maple Leaf Sports & Entertainment (MLSE) from Bell, another Canadian telecom power.

Here are all of the sports assets that Rogers Communications will now have majority ownership of:

• Toronto Blue Jays (MLB)

• Toronto Maple Leafs (NHL)

• Toronto Raptors (NBA)

• Toronto Marlies (AHL)

• Toronto United FC (MLS)

• Toronto Argonauts (CFL)

• Several esports teams

• The Score Media

• Sportsnet

• Rogers Centre

• Scotiabank Arena

• Naming rights to sports venues in Edmonton, Toronto, and Vancouver

• National NHL media rights in Canada

• Local media rights to the NHL’s Canucks, Flames, and Oilers

• Partial local media rights to the Maple Leafs and Raptors

Why Does This Matter?

With this acquisition, Rogers now holds a 75% stake in MLSE.

MLSE, which is one of the largest sports and entertainment organizations globally, now positions Rogers as arguably the most powerful sports entity in the world.​

The total valuation of the teams they own is in the ballpark of $10-12 billion, not to mention the other properties they own.

There aren’t many other groups that can compare.

It’s hard to pull this strategy off, hence why there are so few players, but it gives the groups that can a strong strategic advantage in the sports ecosystem:

• Vertical integration: Outside of team ownership, they can own or control related assets such as media rights, stadiums, or sports apparel companies for cross-sponsorship, distribution, bundling, etc.

• Financial power: They have and can pool significant financial resources, which allows them to invest more into talent, facilities, and marketing.

• Structural influence: These conglomerates can drastically impact player movement, league policies, and the overall landscape of pro sports.

• Minimize downside: While this matters less for leagues in the US, owning multiple teams and assets is a form of risk management and allows for diversification.

The consolidation and commercialization of sports is happening at all levels.

While it's less obvious at the pro level, this trend will only accelerate as private equity and institutional capital continue to permeate the sports industry.

💰 MERGERS & MONEY MOVES 
Surj Sports Looks To Make Its Next Big Sports Investment

• Surj Sports Close To Investing $20M Into Professional Triathletes Organization. SURJ Sports Investment, the sports investment arm of Saudi Arabia’s Public Investment Fund (PIF), is reportedly on the verge of buying a stake in the Professional Triathletes Organisation (PTO) body. SURJ, which has made investments in the Professional Fighters League and DAZN, is in advanced talks to invest around $20 million in the PTO. Cordillera Investment Partners also invested $10 million in PTO in March of this year (more here).

• Yaspa Raises $12M. Yaspa, a London-based fintech company, has secured $12 million in funding to drive its expansion into the US. The round was led by Discerning Capital, with participation from Metavallon and TechStars Ventures. The company plans to use the funds to build a local team, form partnerships, and adapt its platform for the American sports betting and gambling market. Yaspa provides real-time payment and identity services using open banking and AI (more here).

• Beckett Layne Ventures Acquires AC Monza. The Berlusconi family has agreed to sell soccer club AC Monza to Beckett Layne Ventures, an investment firm and strategic advisor to sports, media, and entertainment companies. The deal values the club at about €45 million ($53 million) including debt, according to a source with knowledge of the matter. Under the deal, Beckett Layne Ventures will acquire an 80% stake in the club, with Fininvest, the Berlusconi family’s holding company, retaining a 20% holding before a full exit by June 2026 (more here)

• Haslam Sports Group Sells 10% Stake In Columbus Crew. The Crew's majority owner, Haslam Sports Group, has sold 10% of its stake to the Edwards family, according to a report from Sportico. The Edwards family already owned a 20% stake in the team, and the additional 10% was sold at a $900 million club valuation. The Haslam Sports Group, owned by Jimmy and Dee Haslam, is also the majority owner of the Cleveland Browns (more here).

• Schwarz Group Invests In Dyn Media. Schwarz  Group (the parent company of Lidl) has acquired a 42.5% ownership stake in German sports streaming startup Dyn Media, matching Axel Springer’s share. Dyn Media is a German sports streaming platform that features 3,000+ matches annually across sports such as basketball, handball, volleyball, table tennis, hockey, and more. This funding round values Dyn Media at approximately €80 million (more here).

• Nine Acquires Premier League Media Rights From Optus Sport. Australian broadcaster Nine Entertainment, the parent company of Stan Sport, has struck a deal with Optus Sport for the exclusive rights to English soccer’s elite Premier League domestic. Stan is paying Optus Sport an upfront fee of $20 million and contributing to the first payment for the next Premier League rights cycles. Also included in the broadcast deal are the UEFA Women's Euro, Japan's J.League, and the NWSL (more here).

 🤝 PARTNERSHIPS & COLLABORATIONS
Microsoft AI Will Be Integrated Into Premier League Fan App With New Partnership

• Microsoft & Premier League Form Partnership. The English Premier League and Microsoft announced a new 5-year partnership that integrates AI into the league’s app, website, and fantasy sports platform. With Microsoft AI, fans will be able to access videos, articles, and stats dating back to the league’s founding in 1992. Under the partnership, Microsoft is also becoming the league’s cloud computing partner. Terms of the agreement were not disclosed (more here).

• Microsoft & Big12 Expand Partnership. The Big 12 announced an expanded partnership with Microsoft. The partnership will begin at next week’s Big 12 Football Media Days. The partnership centers around the use of the Microsoft 365 Copilot AI. At media days, a Microsoft Copilot Studio will “streamline access to essential information for the press.” Copilot in Microsoft Teams will also provide press conference transcriptions and AI summaries. Big 12 officials will also use Copilot to review post-game video footage and generate learning and training insights (more here).

• DICK’S & WNBA Extend Partnership. Dick’s Sporting Goods and the WNBA have extended their multi-year partnership. Through their renewed agreement, Dick’s will continue as the “Official Sporting Goods Retailer” and an “Official Marketing Partner” of the WNBA. Additionally, the renewed deal features GameChanger, a Dick’s Sporting Goods company and youth sports mobile platform, which is joining as an “Official Marketing Partner” of the WNBA and a partner of the Jr. WNBA. Through GameChanger, youth players, coaches, and families have “enhanced access” to live streaming, scheduling, communications, and scorekeeping for youth games (more here).

🔊 ATHLETES & OTHER NEWS
WNBA Announces New Expansion Teams

• WNBA Announces Expansion To Cleveland, Detroit & Philadelphia. This week, the WNBA announced the addition of three more franchises that will join the league by 2030, with each franchise paying a league-record $250 million expansion fee. Cleveland will be the first team to enter the league, joining in 2028. Detroit will begin play in 2029, and Philadelphia in 2030. By then, the league will have a record 18 teams (more here).

• Sauce Gardner Teams Up With Q-Collar. NFL star and All-Pro cornerback Sauce Gardner has officially joined forces with the Q-Collar, developed by Q30 Innovations, as the first and only FDA-cleared sports equipment proven to help protect the brain from repetitive head impacts. After wearing the Q-Collar throughout the 2024 NFL season, Gardner has become an official partner, continuing his commitment to performance and player safety into the 2025 season and beyond (more here).

• China Hosts First Fully Autonomous 3-on-3 AI Robot Soccer Match. Four teams of humanoid robots faced off in fully autonomous 3-on-3 soccer matches powered entirely by AI in China’s capital in what was touted as a first in China and a preview for the upcoming World Humanoid Robot Games, set to take place in Beijing. According to the organizers, a key aspect of the match was that all the participating robots operated fully autonomously using AI-driven strategies without any human intervention or supervision (more here).

• Wimbledon Debuts Electronic Line Judge System. Line judges have long been an iconic and instantly recognizable facet of Wimbledon. But as of this year, that tradition has come to an end. Organizers announced in October that an electronic calling system would be introduced at future tournaments, doing away with human line judges. In the absence of the 300 line judges that have been used for the past 148 years, up to 18 cameras, developed by HawkEye, are situated around each court to track the ball’s progress and determine whether it is in or out (more here).

🎙️ PODCAST INTERVIEWS
From Tennis Pro To Sports & Health Investor With CiCi Bellis

This week’s guest on the Vetted Sports podcast is CiCi Bellis.

CiCi Bellis is a former professional tennis player and the Founder and General Partner of Cartan Capital, a venture capital firm focused on the sports & health technology sectors.

Cartan Capital specifically invests in companies that innovate within the following four sub-verticals: sports performance, health & medical, fan engagement, and wellness & lifestyle, and recently announced the raise of its second fund at $40 million.

In this episode, we discuss:
‣ What tennis taught her about raising a venture fund
‣ How she formed her thesis around Cartan Capital
‣ The opportunities they’re most excited about in sports

Check out the full episode here: Apple | Spotify | YouTube