NBA Takes Equity Stake in Sportradar in Data Agreement
Posted on: November 17, 2021, 09:00h.
Last updated on: November 17, 2021, 10:52h.
The NBA and Sportradar (NASDAQ:SRAD) have agreed to a new accord under which the NBA, Women’s National Basketball Association (WNBA), and NBA G League will allow the sports betting data provider to exclusively market the leagues’ data to sportsbooks.
Under the terms of the eight-year agreement, which goes into effect at the start of the 2023-24 NBA season, the association receives an equity stake in the newly public Sportradar. A statement issued by the two parties highlighting the data-sharing arrangement doesn’t reveal the league’s financial interest in the Switzerland-based company. But it’s rumored to be a three percent position, along with a cash component of $1 billion.
The remaining time left on the existing deal, and this new multi-year agreement, gives us significant runway to partner with the NBA and develop exciting solutions across our teams, betting and sports entertainment verticals,” said Sportradar CEO Carsten Koerl in the statement.
News of the NBA pact comes less than three weeks after Sportradar struck an agreement with the Union of European Football Associations (UEFA), under which the Swiss company will be the federation’s exclusive data provider for the UEFA Champion’s League, UEFA European Championships, and other soccer matches and tournaments.
NBA, Sportradar Have History
Sportradar and the NBA trace their relationship back to 2016 when the data supplier became an official provider of real-time NBA statistics.
Sportradar previously had a data agreement with the NFL, but rival Genius Sports (NYSE:GENI) won that business earlier this year. Still, the Switzerland-based company is a major player on the international football wagering stage, providing access to bettors in 120 countries. That’s done through a network of more than 900 sportsbook operators.
For Sportradar and its investors, there’s potential in the expanded NBA accord, because basketball is the second-most wagered-on sport in the US, trailing only football. The rising popularity of the WNBA could also stoke more interest in betting on that league.
Sportradar has ties to the NBA in another interesting way. Three NBA owners — Mark Cuban of the Dallas Mavericks, Michael Jordan of the Charlotte Hornets, and Ted Leonsis of the Washington Wizards — were early investors in the company.
Common for Data Providers to Give Leagues Equity
While Sportradar is giving up equity to the NBA to expand that relationship, investors don’t seem to mind, as shares of the data firm are up 4.23 percent in midday trading. The company went public in September, and the stock is down 13.57 percent since then.
It’s common for data suppliers to entice leagues with shares to win or further relationships. For example, in July, the NHL and Sportradar reached a 10-year agreement and the hockey league can take a stake of up to 1.8 percent in Sportradar.
Earlier this year, Genius Sports granted the NFL an equity investment then worth nearly $450 million as part of a six-year data pact between the two parties.
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