NEW YORK (TheStreet) -- Rogers Communications (RCI - Get Report) and Bell Canada (BCE - Get Report) 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.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts