DEVELOPING STORY -- It's Official -- Bell and Rogers Acquire MLSE

At a press conference, held by MLSE, it was confirmed that Bell Canada in a joint ownership arrangement with Rogers Communications Inc., purchased a net 75% ownership position in Maple Leaf Sports and Entertainment  from Ontario Teachers Pension Plan. MLSE is Canada's largest sports and entertainment company and owner of the premier professional sports teams in Canada's largest marketplace: The Toronto Maple Leafs, Toronto Raptors, Toronto Marlies and Toronto FC.

"MLSE teams are among the most popular major-league franchises in North America, iconic sports brands watched and loved by millions of fans across our nation. As Canada's largest and most established communications company, Bell is proud to be part of this all-Canadian acquisition of a world leader in sports and entertainment," said George Cope, President and CEO of Bell Canada and BCE. "Bell's ownership in MLSE supports our promise to deliver the best content to Canadians across every screen. With our advanced broadband network investments, next generation Bell TV, Mobility and Internet services, and leading sports networks TSN and RDS, the Bell team looks forward to bringing the Leafs, the Raptors, the Marlies and Toronto FC to fans in new and innovative ways."

Bell's net cash commitment, following a planned leveraged recapitalization of MLSE, will total $398 million, representing a 28% equity interest in MLSE, and will be funded with cash on hand at closing. 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.

"MLSE is truly a world-class organization with some of the most iconic brands and popular sports teams across North America," said Nadir Mohamed, President and Chief Executive Officer, Rogers Communications. "We're excited to partner with MLSE to create highly interactive and engaging experiences for hockey, basketball and soccer fans, creating the perfect marriage of content and distribution. This investment fits squarely into our strategy of securing premium content and making it accessible to Canadians when, where and how they want it."

Rogers has an extensive sports presence in Canada. The company owns the Toronto Blue Jays baseball team, the Rogers Centre, and the multiplatform Sportsnet brand. Today's announcement further strengthens Rogers' commitment to the Canadian sports landscape and complements the company's strategic alliance with the Vancouver Canucks, including naming rights for the Rogers Arena, and long-term media agreements with the Edmonton Oilers, Calgary Flames, Ottawa Senators, MLB, NFL, NBA, MLS, CHL, NCAA, Rogers Cup, international soccer, UFC, and more.

"Sports is an integral part of our business and we're committed to Sportsnet being the number one sports media brand in the country," said Mohamed. "We're passionate about sports and we look forward to building championship teams."

Demonstrating its commitment to sport, Rogers has invested heavily in rebranding Sportsnet and is the first Canadian sports media brand to operate across five platforms: TV, radio, print, digital and mobile. Most recently the company launched Sportsnet magazine, Canada's first and only national bi-weekly sports magazine. At the same time, this agreement enables Rogers to secure the best and most valuable sports content for its consumers, its partners and its media properties.

Rogers' net cash commitment, following a planned leveraged recapitalization of MLSE, will total approximately $533 million, representing a 37.5 percent equity interest in MLSE, and will be funded with cash on hand at closing. In a concurrent transaction, KSI Investments, owned by Larry Tanenbaum, will increase its current 20 percent ownership interest in MLSE to 25 percent.

In a concurrent transaction, Kilmer Sports Inc. will increase its current 20.5% ownership interest in MLSE to 25%. KSI is owned by Larry Tanenbaum, who will continue to serve as Chair of MLSE and as a Governor of the NHL, the NBA and Major League Soccer.

The transactions are expected to close in mid-2012 following required regulatory and league approvals.

"I am excited to welcome our new partners Bell and Rogers," said Mr. Tanenbaum. "I am proud this is a Made-in-Canada deal that will bring resources and expertise to help us win on and off the ice, court and pitch. This is a terrific path forward for our teams and our fans. It will ensure MLSE continues to make a positive impact in Toronto and across this great country of ours."

The acquisition secures on a long-term basis access to TV, mobile, digital online and radio broadcast rights for both Bell and Rogers to the premier professional sports teams playing in Canada's largest marketplace: MLSE also has major real estate and entertainment assets including the Air Canada Centre and the Maple Leaf Square condominium and commercial complex, operates three sports specialty TV channels, and is the exclusive partner of the NBA in Canada.