IMG Arena Has Sold Its Library of Sports Rights to Sportradar
In sports betting, where content is king, Sportradar’s acquisition of IMG ARENA’s rights portfolio is a game-changer. It’s a bold move that cements its position as a global sports betting data and content leader.
Sportradar buys IMG Arena’s sports betting rights.
Key Facts:
- Acquisition is expected to strengthen Sportradar globally in its basketball, soccer, and tennis categories
- Revenue predicted to increase, adjusted EBITDA, and free cash flow growth also expected
- Sportradar won’t pay anything for IMG Arena’s portfolio
In a seismic shift that’s set to reshape the sports betting content landscape, Sportradar (NASDAQ: SRAD) has announced a definitive agreement to acquire IMG Arena, securing a treasure trove of global sports betting rights.
This strategic move was orchestrated with Endeavor Group Holdings, Inc. (NYSE: EDR), and it positions Sportradar as an undisputed powerhouse in providing premium sports content.
Far from a typical acquisition, the deal is a masterstroke of financial engineering. Sportradar will not be paying a single cent for IMG ARENA’s portfolio. Instead, it will receive $125 million, while Endeavor will pre-pay up to $100 million to rights holders.
This unique structure immediately bolsters Sportradar’s bottom line, promising an instant boost to adjusted EBITDA margins.
What exactly is Sportradar gaining? A sprawling portfolio encompassing 39,000 official data events and 30,000 streaming events across 14 sports and six continents.
This includes coveted rights to marquee events like Wimbledon, the US Open, Roland-Garros, Major League Soccer, EuroLeague basketball, and the PGA Tour.
Notably, Sportradar will now boast betting rights to three of the four tennis Grand Slams, solidifying its dominance in a key betting market.
“This acquisition is a strategic triumph”, declared Carsten Koerl, Sportradar’s CEO. “We’re not just acquiring rights; we’re unlocking unprecedented growth potential. The concentration of rights in tennis, basketball, and soccer – the trifecta of global betting – amplifies our existing portfolio and allows us to deliver unparalleled value.”
The move is expected to significantly accelerate Sportradar’s revenue, adjusted EBITDA, and free cash flow growth.
The company’s robust technology platform will seamlessly integrate these new rights, driving monetization and generating substantial returns for clients and partners.
The strategic significance of this deal cannot be overstated. With approximately 70% of the acquired rights concentrated in basketball, soccer, and tennis, Sportradar is doubling down on the most popular betting markets worldwide.
This move will enhance content distribution and fuel rapid product development, solidifying Sportradar’s position as the leading provider of immersive sports experiences.
Sportradar has emergent relationships with betting platforms that feed data from the NBA, MLS, World Tennis Association, and other premium professional sports leagues. Sportradar and its partners reach millions of consumers interested in gaming in North America alone.
Sportradar’s Undeniable Advantages
Sportradar stands as a global player in the realm of sports technology, providing a comprehensive suite of data and digital solutions to sports organizations, media outlets, and betting operators.
The company’s core strength lies in its ability to collect, process, and distribute real-time sports data, powering a wide range of applications from live scores and statistics to betting odds and player performance analysis.
With an extensive network of data collectors and partnerships with numerous sports leagues and federations, Sportradar delivers unparalleled coverage across a vast array of sports.
Their technology platform enables them to offer innovative products, including live streaming, virtual sports, and integrity services designed to combat match-fixing and other forms of sports fraud.
Sportradar’s influence extends far beyond the realm of sports betting. They empower broadcasters with enhanced on-screen graphics, assist sports leagues in optimizing their digital strategies, and provide valuable insights to teams and athletes.
As a driving force in the sports technology industry, Sportradar continues to shape the future of sports engagement.
With this deal, Sportradar anticipates an acceleration of its existing share buyback program, leveraging its strengthened balance sheet and enhanced liquidity. The transaction is subject to regulatory approvals and closing conditions.
It’s expected to finalize in the fourth quarter of 2025. UBS Swiss Financial Advisors served as the exclusive financial advisor, and Brandl Talos acted as transaction counsel to Sportradar.
