Key Takeaways
- CEO Carsten Koerl states unregulated market revenue represents just 5%-13% of Sportradar’s business, contradicting short seller estimates of 30%-40%
- Stock价格 plummeted 22.6% in one trading session following publication of reports by Callisto Research and Muddy Waters
- Company leadership categorically denies working with illegal gambling operations and defends compliance protocols
- First quarter financials show €347 million in revenue, an 11% year-over-year increase, but €6 million net loss
- Former Entain executive Sameer Deen joins as COO starting May 18
During Tuesday’s first quarter earnings presentation, Sportradar CEO Carsten Koerl directly addressed allegations from short sellers, stating that revenue derived from unlicensed operators represents between 5% and 13% of the company’s total business. The clarification came as analysts questioned the executive about damaging reports released the previous week.
The accusations, published by short-selling firms Callisto Research and Muddy Waters, suggested Sportradar maintained business relationships with numerous unlicensed gambling platforms. According to Callisto’s analysis, the number of such operators could surpass 270.
A former high-ranking employee quoted in the Callisto report suggested unlicensed platforms might account for 30% to 40% of the company’s revenue stream. Koerl firmly disputed these numbers during the analyst call.
“We do not work with black market operators,” Koerl stated emphatically. “For the grey market, we have a solid compliance structure in place, and we only work with licensed operators.”
The financial impact was immediate and severe. Sportradar’s stock price collapsed 22.6% by Wednesday’s closing bell following the publication of the short-seller reports.
Koerl responded on LinkedIn the next day, characterizing the allegations as “false, misleading and defamatory.” He reiterated this position during Tuesday’s earnings discussion.
CEO Addresses ICE Barcelona Controversy
The Muddy Waters report included claims that a Sportradar sales representative had offered to facilitate introductions to Yabo Group, identified as China’s largest illegal gambling operation. This alleged encounter supposedly occurred at the ICE Barcelona 2026 trade show.
Koerl explained that the short sellers had deliberately targeted a junior member of the sales team and noted that Sportradar conducted approximately 4,000 meetings throughout the conference. He confirmed the company questioned the employee following the incident.
According to Koerl, the conversation represented only the earliest stage of any potential sales engagement, nowhere near contract execution.
“When a sales guy is selling something, there is a kickoff of a very intensive KYC process,” Koerl explained. This comprehensive vetting includes identity verification, license validation, corporate documentation review, and sanctions list screening before legal assessment.
“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 should never have occurred, he maintained it didn’t represent the company’s established compliance framework.
First Quarter Performance Reveals Mixed Results
Beyond the controversy, Sportradar disclosed its first quarter financial performance on Tuesday. Revenue climbed 11% compared to the prior year period, reaching €347 million.
Adjusted EBITDA increased 12% to €66 million over the same timeframe. Despite these gains, the company recorded a €6 million net loss for the quarter.
Koerl reported receiving substantial backing from business partners, customers, sports league officials, and regulatory authorities in the aftermath of the short-seller publications.
“I get a lot of support from all sides,” he noted. “Some regulators contacted our teams, they explained to them the situation, and that’s an ongoing process.”
He characterized the support 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 expressed confidence that Deen would play a critical role in advancing the company’s commercial strategy and enhancing operational efficiency.
