Canada’s OMERS, a major pension plan, is set to acquire a 5% indirect stake in Maple Leaf Sports & Entertainment (MLSE) for $400 million. The stake will be acquired through a 20% direct ownership of Kilmer Sports Inc. (KSI), which is currently owned by MLSE Chairman Larry Tanenbaum.
Larry Tanenbaum, Chair of MLSE, stated that he sees himself as a steward of public trust as an MLSE owner, working in service to fans and the public to build iconic sports teams. He expressed his excitement about sharing this public trust with over 600,000 hard-working Ontarians, making it a positive development for MLSE’s future.
KSI currently holds a 25% stake in MLSE and is owned by Larry Tanenbaum, who also serves as Chairman and CEO of Kilmer Group. The acquisition by OMERS establishes a strong connection between its members and iconic sports teams, including the NHL’s Toronto Maple Leafs, the NBA’s Toronto Raptors, MLS’s Toronto FC, and the CFL’s Toronto Argonauts, along with several development teams.
Blake Hutcheson, President and CEO of OMERS, emphasized that this investment presents an exciting opportunity for OMERS members in Ontario communities to connect with these iconic sports teams.
As a trusted investor, OMERS actively seeks high-quality investment opportunities that offer long-term potential and are fortified by trusted partnerships. This investment is particularly significant because it’s in Canada and Ontario, making it meaningful to OMERS.
Following the transaction, Larry Tanenbaum will retain an 80% stake in KSI, and KSI will maintain its 25% stake in MLSE. Tanenbaum will continue to serve as Chair of MLSE, Governor and member of the Executive Committee of the NHL and MLS, and Chairman of the Board of the NBA. OMERS will be a financial investor and won’t participate in operational decisions for MLSE or its teams.
