So it comes out on Black Friday that the Ontario Teachers’ Pension Plan will not be selling its shares in Maple Leaf Sports and Entertainment. Perhaps that should say: they will not sell their shares at a value less than they themselves believe it’s worth.
Got it? Good.
Or perhaps it should read: they have decided not to sell until the next time.
Black Friday is the day in the retail world when businesses actually start to turn a profit. The numbers on the ledger turn to black, from red. Hence, Black Friday.
No difference really for the Pension Plan, except they have been well into the black for a long, long time. And on this day, they announced their portion is not for sale any longer.
What they didn’t say, and is probably accurate, is that they couldn’t get their asking price for their 79.5 per cent share in the Maple Leafs’ parent company. That number waivered around the $1.5 billion range.
In many ways, it’s no different than putting your house on the market, asking for 20 per cent more than it’s worth and seeing if there are any takers.
No takers, no sale. Not unheard of and probably good business.
There are other questions to ask now. Like, who will replace CEO Richard Peddie, who is leaving at the end of December. Internally, there are some very capable people like COO Tom Anselmi and CFO Ian Clarke and maybe even the two Brians — Burke and Colangelo (for the record, I put Burke first alphabetically) who have both run sports franchises.
Externally, the list will now grow again. Who knows where it will stop. And perhaps, the MLSE board has been head-hunting all along, and will have an announcement soon.
All I know is that the Ontario Teachers’ Pension Plan are very smart bankers. They were in a no-lose situation. Sell the team at their price and get on with life. Keep the team, continue to get 30 per cent on their return and enjoy the view from the platinum seats.
It was, and is, a win-win situation.