Key Highlights
- CEO Carsten Koerl stated that revenue from unregulated sources represents only 5%-13% of Sportradar’s total, significantly lower than the 30%-40% alleged by short sellers
- Reports from Muddy Waters and Callisto Research triggered a 22.6% single-day decline in Sportradar’s share price last week
- Leadership characterized the allegations as “false, misleading and defamatory” and denied any business relationships with black market gambling operations
- First quarter financial results showed revenue growth of 11% reaching €347 million, though the company recorded a €6 million net loss
- Former Entain COO Sameer Deen was named as the new chief operating officer, set to begin on May 18
During Tuesday’s Q1 earnings call, Sportradar CEO Carsten Koerl addressed mounting questions from analysts regarding short-seller allegations, stating that revenue from unlicensed operators represents between 5% and 13% of the company’s total income.
The statement came in response to two separate reports published last week by short-selling firms Callisto Research and Muddy Waters. Both reports accused Sportradar of maintaining business relationships with numerous unlicensed gambling operators, with Callisto’s research suggesting the figure could surpass 270 such operators.
According to a former senior employee quoted in the Callisto report, unlicensed operators potentially contributed between 30% and 40% of Sportradar’s overall revenue. Koerl firmly disputed this estimate 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 allegations devastated Sportradar’s market valuation. By Wednesday’s closing bell last week, shares had plummeted 22.6% following the coordinated short-selling campaign.
Koerl responded on LinkedIn the next day, characterizing the allegations as “false, misleading and defamatory.” He reiterated this position during Tuesday’s earnings presentation.
Leadership Addresses ICE Barcelona Allegations
The Muddy Waters report also contained allegations that a Sportradar sales representative attempted to facilitate an introduction between their undercover investigators and Yabo Group, characterized in the report as China’s most prominent illegal gambling enterprise. This alleged encounter occurred at the ICE Barcelona 2026 trade show.
Koerl explained that the short sellers deliberately targeted a junior sales staff member, noting that Sportradar conducted approximately 4,000 meetings throughout the conference. He confirmed the company interviewed the employee following the incident.
The CEO emphasized that the interaction occurred at the earliest stages of any potential sales engagement, long before contractual agreements could be executed.
“When a sales guy is selling something, there is a kickoff of a very intensive KYC process,” Koerl explained. This comprehensive procedure encompasses identity verification, license validation, corporate documentation review, and sanctions list screening prior to 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 shouldn’t have occurred, he maintained it didn’t represent the organization’s established compliance protocols.
First Quarter Financials Demonstrate Growth Despite Losses
Setting aside the controversy, Sportradar delivered its Q1 financial performance on Tuesday. Revenue climbed 11% compared to the previous year, reaching €347 million.
Adjusted EBITDA experienced 12% growth, totaling €66 million for the period. Despite this progress, the organization reported a €6 million net loss for the quarter.
Koerl noted he’d received considerable backing from partners, clients, league leadership, and regulatory authorities in the wake of the short-seller publications.
“I get a lot of support from all sides,” he remarked. “Some regulators contacted our teams, they explained to them the situation, and that’s an ongoing process.”
He characterized the industry response as “overwhelming.”
In additional corporate news, Sportradar confirmed 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 prove “instrumental” in advancing the company’s commercial initiatives and enhancing operational efficiency.
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