U.S. investment company Providence Equity Partners is reportedly interested in purchasing Maple Leafs Sports & Entertainment.
According to the Toronto Star, the company has inquired about purchasing the Ontario Teachers’ Pension Plan’s stake in MLSE.
Nine months ago the Teachers’ announced it was selling its 80 per cent stake in MLSE.
Marquee sports franchises, and conglomerates such as the MLSE, are often worth over $1 billion, which makes it difficult for individuals to purchase them. Sports franchises like the Detroit Pistons and the Philadelphia 76ers in the NBA have been bought out by private equity firms in the past.
“Now it’s all about the financial play and the investment, not the emotion or getting into the locker room,” Brian Cooper, a former Maple Leaf Sports executive, who is now president of sports consulting company S&E Sponsorship Group, told the Star.
According to its website, Providence Equity Partners manages funds worth more than $23 billion, and is the world’s leading private equity firm focusing on media, communications, information and educational investments.
It is uncertain whether or not the firm has made a formal offer.
The Teachers’ is reportedly asking for $1.5 billion for its stake in MLSE.
