Fourteen years, $500 million, one player and one telecommunications giant have all led to increased revenue for Rogers Communications as its Toronto Blue Jays play in the World Series.
After signing his blockbuster 14-year deal in April, first baseman Vladimir Guerrero Jr. is viewed by many sports analysts as a key piece of the team's run to the World Series.
And some sports economists say that even at half a billion dollars, the seemingly enormous cost of keeping a Montreal superstar on the team is worth it from a business perspective.
“If you get to the World Series and a big player like Vlad is there, that’s probably it. [worth it]”, said Professor Victor Matheson.Professor of Economics at the College of the Holy Cross in Worcester, Massachusetts.
Matheson says that just by selling tickets to World Series games, Rodgers could probably recoup what Guerrero already paid.
That's based on his projection of additional ticket revenue — based on what other teams have earned in the past — even after subtracting the money the team has to spend.it's with the players and the league.
“This year only, ticket sales will earn you a full salary.It's not part of that player's salary, so that's very good. And of course, that’s only part of the money, right?”
A blockbuster deal this spring with Vladimir Guerrero Jr. could result in a financial windfall for Toronto Blue Jays owner Rogers Communications.
Indeed, Rogers has many other pieces of money.
Rogers owns the team itself, as well as the stadium formerly known as the SkyDome, now Rogers Center. So the company makes money not only from the Jays, but also from the food, drinks and merchandise sold at the stadium.
It owns the Sportsnet television network, which carries most Jays games in Canada, as well as one of the largest cable systems that many Canadians use to buy the channel, Rogers Cable.
Notably, the company reported that media and sports revenue grew 26 percent year-on-year. latest quarterly earningscompared with wireless service revenue, which was described as “stable,” and cable TV revenue, which grew just one percent.
The company said it wants to transform the Blue Jays, along with its control of Maple Leaf Sports and Entertainment (MLSE), into one of the “premier sports businesses” in the world.
“This is our third pillar of growth after wireless and cable,” said Rogers CEO Tony Staffieri.
Rodgers also predicts there will be even more money as his team enters postseason baseball.
“The Blue Jays' highly successful MLB playoffs and World Series run will provide continued incremental growth in the fourth quarter,” Rogers Chief Financial Officer Glenn Brandt said on a call with investors last week.
Rogers is still taking risks
Despite the rosy 2025 results, spending half a billion over the next 14 years on a star player doesn't guarantee financial success, says Matheson.
He notes that if the Jays fail, Rodgers will still be paying for a very expensive first baseman for over a decade.
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“It's a much bigger risk in a smaller market like Toronto, where a down season like last season can be quite costly if you have a $35 million-a-year player on your roster,” he said.
But big-market teams often have to hire big-name stars to tell audiences that their team and their city are worth the expense of tickets or merchandise, Matheson says.
That may be part of how companies like Rogers and its shareholders view Guerrero as an investment, according to economist Duane Rockerby.
“They're maximizing shareholder returns… they want a great player,” said Rockerby, who researches the economics of sports at the University of Lethbridge in Alberta.
Rockerby says the addition of a well-known superstar will get people interested in the Blue Jays, which could entice them to buy other products and services from the Jays or Rogers.
He compares it to a luxury offering at a car dealership. Audiences are attracted to expensive things – and then perhaps they spend their money on something else instead.
“They have a Corvette out there…they don't make a lot of them and they're really expensive, but it's their flagship thing. It draws people in. And then maybe they buy some cheap Chevy truck or something,” he said.
According to Rockerby, even if Rogers loses money on Guerrero's half-billion-dollar contract, it can make money on the rest of its operations thanks to his star power and the draw.
“Spend this money”
From a fans' perspective, sports analyst Steve Glynn says he's comfortable with Rodgers spending hundreds of millions on a superstar.
“This is my team, so I don't care if they just bought a place… they'll spend the money,” said Glynn, who formerly worked at Sportsnet and now runs his own own podcast network.
He says it's Jay's fans and Rogers' clients who are ultimately paying for the blockbuster deal to keep Guerrero.
“It's my money anyway, right? Like we're all paying for tickets, beer and a hot dog the length of your forearm,” he said.
Glynn also says he believes Rogers had previously “set money on fire with a blow torch” and still managed to succeed.
He says there's one thing fans shouldn't be denied.Hope? For Rodgers – through MLSE, which also owns NHL team Toronto – to also buy a ticket to the Stanley Cup through contracts with superstars.
“There is a hard salary cap in hockey, whichI don't allow teams to spend more than a certain threshold on players… you can't buy a championship in hockey,” Glynn said.
“That, and the Leafs are damned.”
