This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Canadian Companies Benefit from Major League Soccer Signings

Stocks in this article: RCI BCE DIS CMCSA FOXA

NEW YORK (TheStreet) -- Rogers Communications (RCI) and Bell Canada (BCE) are two of three companies that have the majority of the market for wireline, wireless, and cable subscribers in Canada. However, with ownership of Maple Leaf Sports Entertainment, the two Canadian companies also have key sports assets that could be set to grow with a new focus on their MLS team Toronto FC and a pending television contract renewal.

If you're new to Major League Soccer, you should know that what Toronto FC completed over the weekend was monumental. The team signed Michael Bradley and Jermain Defoe, two players from European teams, to contracts that have soccer fans at a level of excitement last seen when David Beckham joined the league. Defoe is set to make over $8 million a season for the next four years. Bradley will be paid around $7 million for each of the next four or five seasons. Along with Bradley and Defoe, the team also signed Brazilian player Gilberto and got back former MLS MVP Dwayne de Rosario.

Toronto FC had the third-worst record in the MLS during the 2013 season. Despite the poor performance, Toronto's fan base continues to come out and support their team. The team had average attendance of 18,131 per game in 2013, a slight decrease from 2012's 18,681. However, when looking back, Toronto FC ha average attendance over 20,000 per game in each season from 2007 through 2011.

In Forbes' latest soccer valuations, Toronto FC was given a valuation of $121 million, which ranked fifth in the league. Toronto FC also ranked fifth in total revenue ($30.9 million) but fell to sixth in operating income ($4.5 million). For comparison's sake, the Seattle Sounders ranked first with figures of $175 million, $48.0 million, and $18.2 million for valuation, revenue, and operating income, respectively.

The value of Toronto FC is sure to rise if the team can obtain the success it should with its new stars. Attendance and stadium-related revenue should rise on the optimism heading into the new season. The team's valuation, along with other MLS teams, should also be helped by a new television deal. Currently the MLS sees $30 million annually in television contracts from ESPN (DIS), NBC (CMCSA) and Univision. Reports are that the league is looking for $40 million to $50 million in annual payments from a new deal.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs