Key Takeaways
- CEO Carsten Koerl stated that revenue from unregulated sources represents just 5%-13% of total company revenue, sharply contradicting short sellers’ estimates of 30%-40%
- Reports published by Callisto Research and Muddy Waters triggered a 22.6% single-day collapse in Sportradar’s share price
- Koerl characterized the allegations as “false, misleading and defamatory” and emphasized the company refuses to partner with black market entities
- First quarter results showed an €6 million net loss, though revenue climbed 11% year-over-year to €347 million
- Former Entain COO Sameer Deen has been named as the company’s new chief operating officer, 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 ranges from 5% to 13% of the company’s total. The statement came as analysts questioned Koerl about two damaging reports that emerged the previous week.
The publications, issued by Callisto Research and Muddy Waters, accused Sportradar of maintaining business relationships with numerous unlicensed gambling operators. According to Callisto’s analysis, the count 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 dismissed this estimate during the analyst call.
“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 allegations severely impacted Sportradar’s market valuation. Share prices plummeted 22.6% by Wednesday’s closing bell following the short positions taken by both firms.
Koerl responded on LinkedIn the next day, denouncing the reports as “false, misleading and defamatory.” He reiterated this position during Tuesday’s earnings discussion.
CEO Addresses ICE Barcelona Incident
Muddy Waters additionally claimed that a Sportradar sales representative offered to facilitate introductions between their undercover investigators and Yabo Group, which they identified as China’s largest illegal gambling operation. This alleged encounter supposedly occurred during the ICE Barcelona 2026 conference.
Koerl explained that the short sellers had deliberately targeted a junior sales team member and noted that Sportradar conducted approximately 4,000 meetings throughout the event. He confirmed the company had interviewed the employee following the incident.
He characterized the encounter 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 authentication, corporate document examination, and sanctions list screening prior to legal assessment.
“This was far off from signing a contract,” Koerl added. “This was a purposeful sting campaign on a relatively young sales employee at ICE.”
While acknowledging the interaction shouldn’t have occurred, he emphasized it didn’t represent the company’s compliance protocols.
First Quarter Financial Performance
Notwithstanding the ongoing controversy, Sportradar delivered its first quarter financial results on Tuesday. Revenue increased 11% compared to the prior year period, reaching €347 million.
Adjusted EBITDA expanded 12% to €66 million over the same timeframe. Nevertheless, the company recorded a net loss of €6 million for the quarter.
Koerl noted he had experienced considerable backing from business partners, customers, league officials, and regulatory authorities in the aftermath of the short-seller publications.
“I get a lot of support from all sides,” he said. “Some regulators contacted our teams, they explained to them the situation, and that’s an ongoing process.”
He characterized the level of support as “overwhelming.”
Sportradar separately announced 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 strategy and enhancing operational efficiency.
