Nobody championed basketball in Toronto like Larry Tanenbaum, MLSE’s heart and soul

Article content

See more Toronto Sun on Google — save as a Preferred Source 

Article content

Larry Tanenbaum no longer owns a chunk of the Toronto Raptors and basketball fans in Canada will be worse off for it.

Article content

Article content

Nobody championed the sport — way before it was fashionable to do so — like Tanenbaum, the 81-year-old construction magnate who began pursuing an NBA franchise for Toronto at the start of the 1990s when basketball was a complete afterthought here.

Tanenbaum tried to relocate the Denver Nuggets in 1991 and made other attempts for the New Jersey Nets and San Antonio Spurs that didn’t come to fruition. But Tanenbaum, who always loved all sports, but perhaps hoops just a little bit more, would not be deterred. Had he given up, who knows how long it would have taken for the NBA to expand to Canada?

We apologize, but this video has failed to load.

Play Video

Instead, in late 1992, Tanenbaum sent an unsolicited and non-refundable cheque to the NBA for $100,000 to start the expansion bid process. The league ultimately spurned his group and the Raptors were born a couple of years later without him, but there was no way the story of basketball in Toronto was going to end without Tanenbaum becoming involved.

Article content

Having acquired part ownership of the Toronto Maple Leafs in 1996, Tanenbaum and his holding company, Kilmer Sports, Inc., helped broker the 1998 acquisition of the Raptors which created Maple Leaf Sports and Entertainment and secured the long-term playing future of the two powerhouse teams at what would become the Air Canada Centre (now Scotiabank Arena).

In the ensuing years, Tanenbaum, though not a majority owner on paper, became the face of MLSE and, really, its soul. He strove to create a family atmosphere, hosting countless parties for players and staffers of MLSE teams, constantly taking a seat, with wife Judy, courtside for Raptors games.

He was involved in MLSE bringing in Tim Leiweke as its president and in Masai Ujiri becoming Raptors general manager not long after that. Both moves ended up being massively beneficial for the Raptors franchise, which went on to get a sparkling practice facility built, a farm team up and running in Raptors 905 and, of course, win the 2019 NBA title.

Article content

Article content

Tanenbaum went from pleading with the NBA for a Toronto team to not only bringing the championship here, but also becoming the long-time chairman of the NBA’s board of governors.

One hell of a run.

Now he’s out of the picture

Sadly though, as of Monday, Tanenbaum is officially out as a MLSE co-owner and power broker, as part of a deal inked long ago when telecommunications giants Rogers Communications and Bell Canada shrewdly bought out the Ontario Teachers’ Pension Plan, Tanenbaum’s partners for nearly two decades.

Tanenbaum was going to be pushed out at some point, but with Bell bowing out previously, Rogers — under owner Edward Rogers and CEO Tony Staffieri — will now run the whole show (perhaps with Blue Jays president Mark Shapiro, now the only remaining president in MLSE/Rogers sports’ portfolio, taking a bigger role down the line).

They reiterated Monday that they’ll be taking in outside money at some point for a minority stake.

Rogers has shown a willingness to commit in terms of payroll and there’s no reason that won’t continue, but with Tanenbaum going, it does feel a bit like a lot of the heart and soul of the conglomerate is leaving too.

Article content

“As I step back as an owner, as contemplated by a shareholders agreement entered into 15 years ago, I am extremely proud to leave this legacy of excellence, a culture of winning, and a family feeling among all our MLSE employees to be carried on,” a hopeful Tanenbaum said in an open letter to fans Monday.

“I thank you for putting your confidence in me. I’ve always regarded my ownership position as a public trust, for truly, these teams belong to you, the best sports fans in the world. You have cheered for the  Leafs, Raptors, Argonauts, Toronto FC, the Marlies, and Raptors 905 through it all – from heartbreaking losses to euphoric championship wins – with unwavering loyalty and passion,” Tanenbaum said.

“I believe that sports has the power to unite communities, to create positive role models, and to impart the value of teamwork to younger generations. Alongside my wife and family, we have witnessed what is possible when people come together with a common purpose.

Article content

“I applaud the accomplishments of Edward and wish him and his team all the best moving forward with this extraordinary organization. Now, I look forward to joining you all as a lifelong fan. See you at the games.”

Why Tanenbaum is not finished with hoops yet

At least Tanenbaum isn’t completely finished helming a professional basketball franchise in Toronto. He was at the forefront of making the Toronto Tempo Canada’s first WNBA franchise and so far the Tempo has been a rousing success.

Funnily enough, whereas Tanenbaum once dreamed of the Nuggets moving to Toronto and playing on the CNE grounds just west of downtown, he now has a team doing just that in the Tempo (who also are building a practice facility next door).

“I remember, Larry at the time, when he first pitched (moving the Nuggets), the pitch was to have the stadium at CNE,” said Alex Wong, author of ‘Prehistoric: The audacious and Improbable Origin of the Toronto Raptors‘ which delves into Tanenbaum’s relentless pursuit of pro hoops for Toronto.

Article content

“So it’s like a full circle, because (the Tempo are) there now,” Wong said.

“So Larry kind of does get to check off that box of bringing a new team to the CNE, what, 35 years later.”

@WolstatSun

With Monday’s news that Rogers Communications, Inc. will add Larry Tanenbaum’s stake to complete ownership of Maple Leaf Sports and Entertainment, Ltd., here’s a timeline of MLSE’s ownership history of Toronto sports teams:

PREVIOUSLY

1996 – Larry Tanenbaum buys 25% of MLG Holdings (Steve Stavro had 55%, with backing from the Ontario Teacher’s Pension Plan, which bought in in 1994, Toronto Dominion 20%).

1998 – MLG Limited buys the Toronto Raptors and the building that would become the Air Canada Centre.

Article content

2000 – Rogers buys 80% of the Toronto Blue Jays.

2003 – OTPP acquires majority holding (58%) of new Maple Leaf Sports and Entertainment. Bell Globemedia had a 15% initial stake, TD Capital Group 14%, Tanenbaum’s Kilmer Sports Inc. 13%.

2004 – Rogers buys the other 20% of the Blue Jays.

2005 – MLSE awarded Major League Soccer expansion team and agreed to fund a portion of the construction of what would become BMO Field. MLSE also partners with Rogers to host select Buffalo Bills games.

We apologize, but this video has failed to load.

Play Video

2008 – Bell (going by CTVglobemedia) sells half of stake to Tanenbaum.

2009 – OTPP buys the other half of Bell’s stake

2011 – OTPP acquires TD Capital Group’s shares, leaving only OTPP and Tanenbaum as owners.

MLSE FORMED

OTPP sells stake to BCE and Rogers for $1.32 billion. Tanenbaum increases his own stake 5% to 25% with the deal.

2012 – Deal approved by various entities in Canada and professional sports leagues.

2013 – Tanenbaum and Edward Rogers III partnered with Jon Bon Jovi in attempt to bring Bills to Toronto, but were outbid by the Pegulas.

Article content

2018 – MLSE buys the Toronto Argonauts of the CFL.

2023 – Tanenbaum and OMERS announce OMERS purchasing 5% of MLSE (through 20% of Tanenbaum’s Kilmer Sports).

July – Globe and Mail reports Bell and Rogers sent Tanenbaum a letter that “raised questions” about the proposed sale, allegedly because deal with OMERS valued MLSE higher than the telecoms expected.

2024 – Tanenbaum lands Toronto WNBA expansion team with Kilmer Sports. Speculation has Bell as a limited partner.

2024 – BCE announces sale of its stake to Rogers.

WHAT’S NEXT?

2025 – Deal with Bell closed in July after meeting approvals.

2026 – Rogers exercises its right to buy Tanenbaum’s stake (from original 2011 agreement).

2027 and beyond – TBD

Article content