Rogers Communications, the Canadian telecommunications company that owns the Toronto Blue Jays, is considering a possible sale of the team, as Natalie Wong of Bloomberg writes. At this point, it seems the potential move is merely in the conceptual stage.
Rogers CFO Tony Staffieri suggests that the entity is pondering the sale in order to raise funds for other initiatives. Other significant Rogers investments are also under consideration for sale, so it seems the broader strategic considerations are driving the company more than any particular consideration tied to the ballclub.
That said, there’s little doubt that Rogers is also aware of the potential to lock in a massive gain on its initial purchase of the Jays. Back in 2000, an eighty percent stake cost just $112MM. Given that a struggling Marlins franchise just went for $1.2B, it stands to reason that Canada’s only MLB team — a marketing juggernaut with excellent attendance figures even in losing seasons and robust profitability in winning campaigns — would fetch quite a bit more.
Clearly, there’s little reason to think that any sale effort is imminent, let alone a deal itself. But it’s plenty significant that ownership has floated the idea, since that’ll surely function as an initial gauge on market interest and value.
In the meantime, it’s naturally fair to wonder how the higher-level business maneuverings might trickle down to the baseball operations. Perhaps the likeliest scenario, though, is to anticipate a continuation of the recent past. Even in the Marlins’ situation, the club waited to make major changes in the lead-up to the sale. Here, there’s good cause to think the Jays will continue their trajectory of attempting to contend while also being notably mindful of maintaining future financial flexibility and building up their farm.
As a Blue Jays fan, “SELL IT”.
So you think the next owner is going to be willing to have a $200M payroll? They ended 2016 with a $160M payroll and then upped it to $200M for 2017. They went to 2 straight ALCS and these “fans” act like Rogers is similar to McCourt.
The Blue Jays never came close to $200 million. Their highest payroll was in 2017 and that was $168 million.
legacy.baseballprospectus.com/compensation/cots/al-east/toronto-blue-jays/
They are in the 4th largest TV market in baseball and are in a unique situation. Above and beyond the English language broadcast across Canada on Sportsnet, the Jays have 2 additional TV contracts, 1 in the English language broadcast on Sportsnet in the US and the other the French language broadcast in Canada, Rogers Communications is the Cable TV company that owns Sportsnet which has the rights to broadcast the Blue Jays across Canada.
They have $278 million in revenue not including anything from Sportsnet. That will change with a sale. Rogers will be paying for the rights to broadcast the Blue Jays, not pocketing 100% of the money.
The team can afford a $197 million payroll, the luxury tax level. in 2018, and with a new owner you will see payroll closer to that instead of the $125-150 million they have ended 2013-2016 at.
End of year numbers (which Cots doesn’t have listed) has the Jays around the $200 million mark.
http://www.spotrac.com/mlb/payroll/2017/
I can see a couple of numbers wrong with sportrac numbers just by glancing at it, the jays did not pay for the majority of Upton’s contract, the Padres absorbed a big chunk, also they did not pay the full amount of Aoki’s or liriano’s
Sportrac’s salary retention numbers aren’t known for their accuracy. Look at their salary page for the Padres…. it has Upton being paid $12.5 million. And $16.5 million is listed for him with the Blue Jays. Obviously he wasn’t paid $29 million in 2017.
The exact terms of the distribution of Upton’s remaining salary is not known, other than that the Blue Jays were only on the hook for $5 million of his $22 million owed at the time of the trade.
This is the best thing that can happen to them. Getting an owner or ownership group that wants to win is so much better than a company who needs to make a profit and balance books.
Unless we get an owner who wants to win with an 85M payroll. At least Rogers was capable of spending the money. Hopefully whoever buys renames the stadium back to Skydome.
I like the Skydome name too, but I’d much rather take the money and call it the Tim Hortons Dome. If our goal (as fans) from a sale is to get ownership that fronts even more money than Rogers did, they will need to go all-out with naming rights and TV deals.
Rogers loves mediocrity. Good riddance, hope they sell and the Jays get an aggressive ownership group.
They’re in a division with the Red Sox and Yankees – a tough environment for a franchise to excel in.
Given how the new Marlins ownership has ended up so far, I’d caution Jays fans who think that anyone would be better
Hopefully corporations like Rogers and LibertyMedia will sell off their teams and allow their fan bases to experience the joy of having an owner/owners who are actually fans of the game and enjoy winning. As a Braves fan, I am tires of Liberty just being happy with making money regardless of the product on the field.
It’s hard to fathom the team valuation increases that have taken place since 2000. Easily 1,000% value gains in 18 years! To me, in most markets, thatd scream bubble…but mlbproperties has done a great job at generating new revenue streams. Im still not convinced true values are in the range we’re seeing now…but its worked for owners that got in. And, of course, there’s scarcity when it comes to mlb….only 30 teams…so its not quite like a real estate market flooding housing additions. Im surprised given the profitability that we’re not hearing more serious talk of expansion. But long-term im not sold mlb will be great, and probably will have a hard time even maintaining these gains.
I think you are right on. The financial support of MLB is just reaching its peak. Once it starts to fall, and it will fall significantly as the economy tightened towards the end of 2018. Epson is a good early indicator with it revenues and payroll dropping through the floor. The advertising revenues, cable fees, and rights fees will all start tumbling in 2018. The jays value is at the peak right now.
It’s not just near term finances. It’s replacing the baby boom market. Many baseball fans are aging, and the younger generations are very fickle as far as loyalty to almost any form of entertainment. Baseball needs to hope it becomes more like soccer than tennis or golf. Since the strike baseball has gone from a solid middle class sport to a much higher end market. It shows in general advertising….but even the typical backbone advertisers like Anheuser have taken hits and arent growing either. Baseball has had a longterm golden era with the baby boomers….started with Mantle…kind of veered off when they came of age in the early 70s…then that 75 Series helped them rediscover the game. I just don’t see the loyalty in the shadow generation behind them, or with millenials certainly. Baseball is something that fans pick up in their youth. Im also concerned about consumer debt load.
The Jays crowd is trending younger, by my observations over the last 5 seasons . My 20 something kids and friends go to more Jays games than any other scheduled event because it is affordable. My son has 500 level seasons tickets that are better than many of the 200 and 100 level seats I’ve bought packs for. Rogers may have missed the curve selling now, as the TV money that added value to other teams may not be there. I can’t see Rogers selling the team and paying market value for a TV deal. The in-house profits from TV were a big part of Rogers profits while owning the team.
Assuming the next owner is going to be automatically better makes no sense. I’d lay a few bucks that the first thing a new owner does is ask for a new stadium paid by my taxes. That’s a non starter for me out of the box.
Baseball will always have that 20 something market….families havent begun yet…careers have started with fewer pulls on disposable income. Im curious how many 500 level seaters turn into lower level seaters down the road. To me ballparks have become more like bars in the past 25 years. But im curious to see if theres a fall off age when people stop going to games. I have 4 boys age 4-14….its a costly hassle to go to an mlb game.
Rogers valued the in-house English language Canadian TV contract at $35 million annually when the market value is $80-125 million annually for a TV market with that many households based on other MLB teams recent contracts.
The Blue Jays 6 year TV deal with French-language broadcaster TVA that started with the 2015 season is worth $162 million overall, so the English language deal is worth much, much more.
For most businesses, sale value is about 8 times annual revenue. With the Blue Jays, it’s hard to measure that accurately since the Cable TV company owns the team. The only TV revenue we get to see is what they are being paid by the French language TVA in Canada. That will change when there is a new owner since Rogers will have to pay the new owner for the rights to broadcast the team in Canada.
I wouldn’t be surprised to see the Romney camp jump at the chance to buy the Blue Jays.
Forbes valued them at 1.3B, but after the Marlins deal that might be understated
The Jays sale would also likely come with the stadium as Rogers owns that as well. Not sure if that is a plus or not as it pretty much prevents them from getting taxpayer money.
Jays fans must be dancing a jig right about now. The 4th largest market in baseball and Rogers has been unable to put a winner since Joe Carter.
Rogers hasn’t been that bad. We could certainly do worse (or better).
Yeah. Loria could have purchased the team instead of the Marlins. lol
The real issue is no Pat Gillick as GM of the Jays since that time.
Yes, many people read your comment and laughed at the stupidity of it. Read the comments following and stop projecting your inability to pay attention to something for 3 hours on everyone else.
Sell them to MLSE, Rogers would still have a stake in them because they are part owners of MLSE and the Jays would get out from being directly owned by a corporation and would be free to increase payroll
If this results in Wilner getting fired from the baseball broadcasts then I am all for it!
Maybe Auston Matthews will buy them after he gets his next contract.
As much as I hate rogers for my phone bill and such, they really do a decent job with the jays. Ya they could probably afford to spend a bit more and still be profitable, but anyone else who would own the team would likely spend less. Hard to complete with two teams that have won 8 combined WS in the past 22 years.
Really to be honest the list of potential buyers is small
And don’t say MLSE cause why would rogers want to share broadcast rights ?
Some years ago, I read that Rogers had a staggering $5 BILLION of debt associated with acquisitions of (failing) cable TV/phone companies and from building up the infrastructure to bring cable TV to the entire country. It is likely that Rogers thrived after the tech crash of 2000 (or thereabouts) simply because it had larger credit lines than anyone else. (And it seems that, quite by accident, holding so much cable TV infrastructure allowed them to be a major player in hi-speed Internet, when that became desired by the public.)
Anyway, according to Reuters, Rogers now has $13 BILLION in outstanding debt!!!
https://ca.reuters.com/article/canadaSportsNews/idCAKBN1E00D0-OCASP
So if anyone wants to whine about how Rogers has underfunded the Jays…take your hand off your sock-covered junk and give your head a shake (for a change).
Then ask yourself, “Who in the heck can afford to buy the Jays AND pay off the loans from the acquisition AND maintain a high payroll?”
I’m not saying you can’t complain, I’m just saying your complaints should be informed by facts, not by your “little man” and his five-fingered girlfriend.