Key Takeaways
Contents
- CEO Carsten Koerl stated that revenue from unregulated sources represents between 5% and 13% of Sportradar’s total, significantly lower than the 30%-40% range alleged by short sellers
- Stock prices plummeted 22.6% in one trading session following reports published by Callisto Research and Muddy Waters
- Koerl characterized the allegations as “false, misleading and defamatory” and emphasized that the company refuses to engage with black market operators
- First quarter results showed an €6 million net loss even as revenue increased 11% to reach €347 million
- Former Entain COO Sameer Deen was named new chief operating officer, set to begin May 18
During Tuesday’s first quarter earnings call, Sportradar CEO Carsten Koerl addressed analyst questions by stating that revenue generated from unlicensed operators represents just 5% to 13% of the company’s total. The statement came as executives fielded questions about two critical short-seller reports published the previous week.
The reports, released by Callisto Research and Muddy Waters, made allegations that Sportradar maintains business relationships with numerous unlicensed gambling operators. According to Callisto’s estimates, the number of unlicensed operators could surpass 270.
A former senior staff member quoted in the Callisto report suggested that unlicensed operators might represent anywhere from 30% to 40% of Sportradar’s overall revenue. Koerl firmly disputed this assertion during the earnings discussion.
“We do not work with black market operators,” Koerl stated. “For the grey market, we have a solid compliance structure in place, and we only work with licensed operators.”
The market reaction to these reports was severe. Share prices dropped 22.6% by Wednesday’s closing bell following the short positions taken by the two research firms.
Koerl responded on LinkedIn the next day, characterizing the allegations as “false, misleading and defamatory.” He reiterated this position during Tuesday’s quarterly earnings discussion.
CEO Addresses ICE Barcelona Incident
Muddy Waters also claimed that a Sportradar sales representative offered to facilitate introductions with Yabo Group, identified as China’s largest illegal gambling operation. This alleged encounter supposedly occurred during the ICE Barcelona 2026 conference.
Koerl explained that the research firm had deliberately targeted a junior sales representative and noted that Sportradar conducted approximately 4,000 meetings at the event. He confirmed the company questioned the employee following the incident.
He characterized the exchange as occurring at the earliest stage of any prospective sales engagement, far removed from any contractual commitment.
“When a sales guy is selling something, there is a kickoff of a very intensive KYC process,” Koerl explained. This procedure encompasses identity verification, license validation, corporate documentation review, and sanctions list screening before legal examination.
“This was far off from signing a contract,” Koerl emphasized. “This was a purposeful sting campaign on a relatively young sales employee at ICE.”
While acknowledging the interaction was inappropriate, he maintained it doesn’t represent the company’s compliance framework.
First Quarter Financial Performance Reveals Mixed Results
Beyond the controversy, Sportradar delivered its Q1 financial results on Tuesday. Revenue climbed 11% compared to the previous year, reaching €347 million.
Adjusted EBITDA increased 12% to €66 million over the same timeframe. Nevertheless, the company recorded a net loss of €6 million for the quarter.
Koerl noted he has received considerable backing from partners, customers, league officials, and regulatory bodies in the wake of the short-seller allegations.
“I get a lot of support from all sides,” he commented. “Some regulators contacted our teams, they explained to them the situation, and that’s an ongoing process.”
He characterized the response as “overwhelming.”
Sportradar additionally revealed that Sameer Deen will assume the role of chief operating officer beginning May 18. Deen previously held the positions of COO and president at Entain starting in December 2023.
Koerl indicated he anticipates Deen will be “instrumental” in advancing the company’s commercial initiatives and enhancing operational efficiency.
