Rogers shuts down Sportsnet 650 and News1130 in Vancouver
Rogers Communications this week closed two Vancouver radio stations — Sportsnet 650 and News1130 — as part of a broader restructuring that has drawn sharp criticism from journalists and industry observers. The shutdowns come just days after Rogers completed its full acquisition of Maple Leaf Sports and Entertainment (MLSE), giving the telecom giant control over all major professional sports teams in Toronto.
Critics question lack of competition
Columnist Patrick Johnston of The Province argues that the closures exemplify a troubling trend of consolidation in Canadian media and sports. “The actions of Rogers Communications this week demonstrate how little competition there now is in Canada's sports and media industries,” Johnston wrote. He questioned whether the Competition Bureau is paying attention to the diminishing number of independent voices, especially in Canada’s third-largest city.
Johnston noted that Vancouver has lost numerous media outlets over the past decade, including the Georgia Straight, Metro, 24 Hours, the Vancouver Courier, TSN 1040, and CKNW as a separate operation. The Sun and The Province were once independent of each other. Now Sportsnet 650 and News1130 have been added to that list.
Rogers CEO focuses on shareholders
Rogers CEO Tony Staffieri celebrated the MLSE acquisition in a news release, saying it gives the company “even more opportunity to invest in championship-calibre teams, create unique experiences for customers and fans, and unlock long-term value for shareholders.” But Johnston countered that the layoffs and station closures suggest the real priority is shareholder returns, not fans or local communities.
“It’s about making more by doing less,” Johnston wrote. He added that the idea Rogers will now juice up the Leafs, Raptors, Blue Jays, Argos, or Toronto FC “strains credulity.”
Radio ad revenue plummeted
According to Johnston, Vancouver radio stations sold about $125 million in advertising in 2009. Today, that figure is around $50 million. He attributes the $75 million shortfall largely to American tech conglomerates capturing ad revenue. “That doesn’t seem in our national interest,” he said.
Journalist highlights loss of expertise
Reporter Justin McElroy noted on Facebook that the shuttered outlets “paid people decent wages to report on what was happening in our city” and used “a code of ethics, training, mentorship, group discussions and sharing of best practices to make sure stories were fair, deeply sourced, and had a big impact.” Johnston echoed that sentiment, warning that the loss of professional journalism is not offset by the rise of new technology platforms.
“We are not better off living in a world where we mostly just get people hyping up news releases or otherwise sharing information that’s devoid of context,” Johnston wrote.
Competition Bureau remains silent
Johnston said he contacted the Competition Bureau about the Rogers-MLSE deal. A spokesperson replied that the bureau “may review any merger or acquisition” but declined to confirm whether the Rogers transaction is under review, citing legal requirements to conduct work in private. “Privacy for the rich guys. That’s nice,” Johnston commented. “It’s the people who do the work, as always, who are left in the dark.”
Call for regulatory action
Johnston argued that it is the job of regulators to say “enough” when monopolies emerge. He questioned why the federal government allows Rogers to control all the teams and the airwaves while also sending journalism subsidy money to the same company. “More competition between media operations and sports teams is better for everyone,” he concluded. “It means more jobs and it means more things to look at and listen to and read about. It’s time for the people in charge to figure out how to lead the way and fix all this.”
