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Thread: Teachers’ looking to buy TD’s stake in MLSE

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    Raptors Republic Rookie Liston's Avatar
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    Default Teachers’ looking to buy TD’s stake in MLSE

    http://business.financialpost.com/20...stake-in-mlse/

    Toronto-Dominion Bank confirmed it is in “advanced discussions” regarding the sale of its stake in Maple Leaf Sports and Entertainment to the Ontario Teachers’ Pension Plan.

    “As with any financial investment, we are prepared to exit at the right time and on the right terms,” said Wojtek Dabrowski, a spokesman for the bank.

    “We believe this proposed transaction affords us that opportunity.”

    Financial details have not been disclosed.

    With $107-billion in assets under management, Teachers’ is one of Canada’s largest pension plans.

    It already owns 66% of MLSE. If the transaction goes through, Teachers’ said its ownership stake could increase to between 76.35% and 79.53%.

    Jim Leech, chief executive of the Teachers’, said the purchase of TD’s stake in the sports franchise is intended to “streamline” a potential sale process started by the pension plan last year.

    “We have to look when credible parties say, ‘Are you interested in selling [because] we’re interested in buying,” he said, adding that if an acceptable bid for Teachers’ combined 75 to 80% stake doesn’t materialize, the pension plan will consider owning MLSE.

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    Super Moderator Joey's Avatar
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    "The Pension plan will consider owning MLSE."

    My god ... my worst Nightmares have come true!!

    Next thing we know it'll be Silvestri being the one in charge of the Take Over.
    Last edited by Joey; Tue May 10th, 2011 at 06:17 PM.
    "I just dunked. Got a little dunk. That’s nice." Terrence Ross

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    Raptors Republic Veteran ceez's Avatar
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    guess i'll buy a thunder jersey...
    @jerboat

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    Wtf?!?!

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    Administrator Apollo's Avatar
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    Default Boring...

    This is probably a good thing. They're still suggesting they want to sell and this is part of the plan. This play doesn't really give them any more power than they had. This is all I care about:

    Jim Leech, chief executive of the Teachers’, said the purchase of TD’s stake in the sports franchise is intended to “streamline” a potential sale process started by the pension plan last year.
    Less stakeholders means less obstacles in a potential sale.

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    Raptors Republic All-Star grindhouse's Avatar
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    ok so lets get this straight teacher's own 66% TD owns 14% and chairman Larry Tanenbaum 20%, so if teacher's buyout TD they own 80%

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    Raptors Republic All-Star slaw's Avatar
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    From the article, it sounds like Larry T. has the right to buy 20% of an owner's shares if they are sold. Stay with me: if Larry T. exercised that right on a OTPP sale, that would put Larry T., plus TD Bank at ~48%. That would put an incoming owner in a tricky situation. Now, with OTPP at 80%, the most Larry T. can get is ~36%.

    I suspect those numbers drove this purchase as TD Bank is likely getting the premium that OTPP wants.

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    Raptors Republic All-Star Balls of Steel's Avatar
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    Quote Apollo wrote: View Post
    This is probably a good thing. They're still suggesting they want to sell and this is part of the plan. This play doesn't really give them any more power than they had. This is all I care about:



    Less stakeholders means less obstacles in a potential sale.
    +1. This is just their way of making the sale less complicated. As a teacher myself, this makes sense. The pension is going to need to deal with the upcoming shortfall in pension payments. They need to liquidate this particular asset to meet that shortfall. Oh, Joey H. Don't panic too much. The OTFP is the largest and the most well- managed pension fund in North America. They're not in the business of screwing with an asset they don't intend to keep.
    “The saving of our world from pending doom will come, not through the complacent adjustment of the conforming majority, but through the creative maladjustment of a nonconforming minority.” - Martin Luther King

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    Raptors Republic Rookie meductic's Avatar
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    Arghhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh...

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    Super Moderator Joey's Avatar
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    Quote Apollo wrote: View Post
    This is probably a good thing. They're still suggesting they want to sell and this is part of the plan. This play doesn't really give them any more power than they had. This is all I care about:



    Less stakeholders means less obstacles in a potential sale.

    But what about ...

    adding that if an acceptable bid for Teachers’ combined 75 to 80% stake doesn’t materialize, the pension plan will consider owning MLSE.
    This doesn't make you AT ALL uneasy?
    "I just dunked. Got a little dunk. That’s nice." Terrence Ross

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    Super Moderator Joey's Avatar
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    Quote Balls of Steel wrote: View Post
    +1. This is just their way of making the sale less complicated. As a teacher myself, this makes sense. The pension is going to need to deal with the upcoming shortfall in pension payments. They need to liquidate this particular asset to meet that shortfall.
    I don't disagree with this, and I realize the implications IF they sell.
    I was mostly concerned with the bit about if a good deal doesn't materialize.
    What do they consider a good deal?



    Quote Balls Of Steel wrote:
    Oh, Joey H. Don't panic too much. The OTFP is the largest and the most well- managed pension fund in North America. They're not in the business of screwing with an asset they don't intend to keep.
    This is also true, but again, I'm ready for a owner who isn't concerned with maintaining the well being and Lively-hoods of MILLIONS of people. How about an owner who just has a sh*t load of money to throw around?! Is that too much too ask Damnit?! haha
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    Raptors Republic Veteran Bendit's Avatar
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    Quote slaw wrote: View Post
    From the article, it sounds like Larry T. has the right to buy 20% of an owner's shares if they are sold. Stay with me: if Larry T. exercised that right on a OTPP sale, that would put Larry T., plus TD Bank at ~48%. That would put an incoming owner in a tricky situation. Now, with OTPP at 80%, the most Larry T. can get is ~36%.

    I suspect those numbers drove this purchase as TD Bank is likely getting the premium that OTPP wants.
    I am sorry I am not following. I did not see where LT is restricted to only 20% of a sale of mlse (right of first refusal). I have always heard this as being a match of any price offered Teachers for their total share. If there is any manouvering I detect it is that Teachers is increasing it's stake to possibly make it more difficult for LT to get the funds because of a larger amount now in play. Why? I cant say. Maybe LT was trying to buy TD out and Teachers came in with a better offer since it would be more attractive for a new owner not to have a 34% partner to have to deal with
    Last edited by Bendit; Tue May 10th, 2011 at 08:24 PM.

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    Raptors Republic Rookie meductic's Avatar
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    Quote Balls of Steel wrote: View Post
    +1. This is just their way of making the sale less complicated. As a teacher myself, this makes sense. The pension is going to need to deal with the upcoming shortfall in pension payments. They need to liquidate this particular asset to meet that shortfall. Oh, Joey H. Don't panic too much. The OTFP is the largest and the most well- managed pension fund in North America. They're not in the business of screwing with an asset they don't intend to keep.
    ...just like a perennial losing team and a 22-60 season is not screwing with an asset. Just like not hiring a coach and gm is not screwing with an asset. I for one wish these guys woud start screwing with this asset.

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    Administrator Apollo's Avatar
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    Quote joey_hesketh wrote: View Post
    This doesn't make you AT ALL uneasy?
    Not really. I think it's a negotiation tactic.

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    Couple of questions regarding this latest move by the OTPP

    1. How does this affect Colangelo's status?
    2. Does anyone get the impression that Tannebaum may just be sitting back and eventually emerge as the owner? Would that be good for the Raptors and Leafs?

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    Default Do not Fear the Teacher's

    They spend to make their assets better. They just do not know what they are doing in terms of running a franchise. That is why they hired Burke and Colangelo - they finally understand that they do not understand.
    They need to get a GM in place before the draft, though. Even if they don't, someone will have to pick someone off the board. The success of that is probably no worse than any other method.
    Besides, the balls are pre-determined and Stern is not concerned with the Raps these days.

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    Super Moderator Joey's Avatar
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    Quote jd4 wrote: View Post
    Couple of questions regarding this latest move by the OTPP

    1. How does this affect Colangelo's status?
    2. Does anyone get the impression that Tannebaum may just be sitting back and eventually emerge as the owner? Would that be good for the Raptors and Leafs?
    If it means that this will help speed up the process, then yes, it will affect Colangelo's status.

    And IF Tannenbaum comes out on top, I for one, wouldn't necessarily be against that.
    He seems to be a pretty Hands-off type Owner, who trusts the Brains that he's hired.
    "I just dunked. Got a little dunk. That’s nice." Terrence Ross

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    Raptors Republic Starter RapthoseLeafs's Avatar
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    Default Show me the money

    Quote Bendit wrote: View Post
    ....... If there is any manouvering I detect it is that Teachers is increasing it's stake to possibly make it more difficult for LT to get the funds because of a larger amount now in play.
    The more difficult it is for Tannybum to secure financing, the more likely a bidding partner (or two), will enter the fray. A means to an end - better price.

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    Administrator Apollo's Avatar
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    Quote EaseMyPain wrote: View Post
    Even if they don't, someone will have to pick someone off the board. The success of that is probably no worse than any other method.
    I want Colangelo making that draft selection. He's has a great track record and as such I would argue with this point. Getting somebody else to make the pick leads to Hoffa selections.

    Quote EaseMyPain wrote: View Post
    Besides, the balls are pre-determined and Stern is not concerned with the Raps these days.
    The Raptors represent an entire country and Stern is trying to expand the game globally. You theory doesn't makes sense.

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    Raptors Republic Starter jeff_hostetler's Avatar
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    This is nothing but a business decision, and will have little - if any - effect on the Raptors organization (at least insofar as this single transaction is concerned). Taking one less shareholder out of the equation = one less obstacle to eventual sale.

    But...if the OTPP does, in the end, take long-term control of MLSE and not sell off as they are trying to at the moment, then an even bigger portion of revenue for the Teachers becomes directly linked to the success of Toronto's sports franchises.

    They would take a long term interest in the financial health and profit generating capacity of the teams. Which, any good business guy should be able to tell you, is linked to the ability of those teams to consistently appear and be successful in the playoffs. Playoffs equal more home games, more ticket sales and better marketing. One and dones need not apply.

    Therefore, if such a long term stakeholder such as the OTPP does in the end not sell and maintains an 80% ownership stake in MLSE, then I for one see this as a good thing as far as it relates to them needing success for their sports franchises. This though is contingent upon their business guys focusing on the correct business model for the long term, which happens to fall nicely in line with the correct way to build a sports franchise: sustained success in the playoffs and championship contention, all built around marketable players. This requires a team to avoid the band-aid solution - that is, NoMoreTurks-O'Neils (tm).

    This is where Colangelo's situation may come under the most duress, as he is definitely a guy who I see as being likely to pull the trigger on a trade that may sacrifice the long term for a chance at the playoffs - even if that playoff seed happens to be quite low. I do think though that pressure has been placed on him specifically not to do this anymore. That's just my opinion from what I've heard, read and understood. I could be wrong of course.

    Long story short: so long as Colangelo is ammenable to the proper rebuild - and signs are good now that he is - I think ownership will have him back. As far as the OTPP is concerned I think they are already on board with such a plan as described above for the team. Personally then I would prefer, as far as the Raps are concerned, for them to not sell, and maintain their 80% stake. Due to what I said, but also having no idea who may be next in line for that 80% stake and what they might want out of their investment.

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