Sportradar reportedly paid $ 1 billion for NBA data distribution deal
Sports radar (SRAD) – Get the SPORTRADAR GROUP report on Wednesday unveiled an agreement with the National Basketball Association, granting the Swiss betting data company exclusive rights to distribute NBA data to sports betting.
The eight-year deal, which begins in 2023, has cost Switzerland-based Sportradar more than $ 1 billion in cash and shares, a knowledgeable source told sports publication Sportico.
The NBA will acquire a 3% stake in the company, according to a regulatory filing. Sportradar has a market capitalization of $ 6.3 billion.
The agreement also includes the Women’s National Basketball Association.
Sportradar stock recently traded at $ 21.45, down 0.9%. It has fallen 14% since its IPO on September 14
Sportradar, backed by basketball legend Michael Jordan and Dallas Mavericks owner Mark Cuban, account DraftKings (DKNG) – Get the DraftKings Inc. (DKNG) report, Twitter (TWTR) – Get the Twitter, Inc. and disney (SAY) – Get the Walt Disney Company report ESPN among its customers.
The deal extends a relationship that began in 2016, when the NBA made Sportradar an official provider of real-time NBA stats.
Earlier this year, Sportradar signed data rights agreements with the Union of European Football Associations, the International Tennis Federation, the International Cricket Council and the National Hockey League.
Also on Wednesday, Sportradar reported third-quarter revenue of 136.8 million euros ($ 154.7 million). This exceeds the consensus estimate of analysts at IBES Refinitiv of 133.5 million euros.
Earlier this month, the NBA unveiled an expanded multi-year relationship with DraftKings, (DKNG) – Get the DraftKings Inc. (DKNG) report naming the online sports betting company the league’s co-official sports betting partner.
The Boston-based company and the NBA first teamed up in 2019 when DraftKings became a licensed gaming operator for the league.