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Sportradar to Sever IMG Arena’s Loss-Making European Leagues Deal Before Acquisition Finalization
In a strategic move ahead of their anticipated acquisition, Sportradar has instructed IMG Arena to terminate its financially underperforming agreement with the European Leagues Association. This decision came before the projected $225 million takeover, which is set to conclude by the year’s end.
Initially revealed in March 2025, the acquisition will see IMG Arena transition from the Endeavor Group to Sportradar. In a notable shift within the sports data landscape, Genius Sports recently secured exclusive betting data rights for 18 football competitions managed by the European Leagues Association, ending IMG Arena’s hold on these leagues, which included prominent entities like the Dutch Eredivisie and the Belgian Pro League since the start of the 2022–2023 season.
Rethinking Data-Only Deals
During a recent earnings call discussing Sportradar’s second-quarter financial results, CEO Carsten Koerl expressed concerns over the sustainability of “data rights-only” agreements. He emphasized that IMG Arena’s collaboration with European leagues was not yielding profits, prompting the request to dissolve the relationship prior to the acquisition’s completion.
Koerl noted, “This deal was losing money for IMG Arena, so we decided to ask them to terminate it and settle. Consequently, it won’t impact our projected earnings from IMG Arena.” He elaborated on the limitations of data-only agreements, highlighting that the absence of audiovisual rights diminishes their value.
Integration of IMG Arena Underway
Sportradar has started comprehensive planning for integrating IMG Arena into its operations. Koerl assured stakeholders that efforts are focused on ensuring a smooth transition post-acquisition with cross-functional teams devising plans aimed at delivering long-term benefits for clients and partners.
As the acquisition moves forward, the UK’s Competitions and Markets Authority is set to investigate the deal, raising questions about its potential effects on market dynamics.
Record Financial Performance
In its quarterly report, Sportradar projected an increase in its annual revenue forecast to €1.28 billion, reflecting a year-over-year growth trajectory of at least 16%. The adjusted EBITDA for 2025 is predicted to reach a minimum of €284 million, demonstrating growth of at least 28% compared to 2024.
However, CFO Craig Felenstein clarified that these forecasts do not yet account for any repercussions from the pending IMG Arena acquisition, as the deal’s closure remains uncertain.
Felenstein added, “Once the acquisition is finalized, we will incorporate the expected advantages of IMG’s sports rights portfolio into our projections, especially anticipating it will enhance our overall revenue and cash flow generation.”
Notable Revenue Growth
For Q2, Sportradar reported a record revenue of €318 million from April to June 2025, marking a 14% increase from the previous year. This growth was largely driven by advances within its Betting Technology & Solutions and Sports Content divisions.
Revenues from Betting Technology & Solutions rose 12% to €259 million, fueled by increasing demand for high-quality content, particularly in the US market. Managed Betting Services revenue reached €59 million, up 21%, attributed to a heightened volume of transaction activities and improved trading margins.
US revenues surged by 30%, contributing to 28% of total group revenue, up from 24% a year prior, showcasing strong market dynamics and demand for premium solutions.
Profitability Boosted by Currency Gains
The company achieved a net profit of €49 million, a substantial recovery from a €2 million loss in Q2 of 2024. This impressive turnaround was fueled by robust operational performance alongside a €54 million gain from foreign currency fluctuations, especially linked to US dollar-denominated sports rights.
Despite increased tax expenses—rising from €1 million to €12 million—these gains have positively contributed to Sportradar’s bottom line. Adjusted EBITDA surged 31% year-on-year to €64 million, attributable to revenue growth while reflecting higher costs associated with sports rights and staffing.
Sportradar continues to invest in its product offerings, including enhancing partnerships with organizations like the ATP and renegotiating terms with MLB—key factors driving its expenditures.
Reflecting on the positive results, Koerl stated, "Our focus on executing our long-term strategy positions us favorably for sustainable revenue growth and expanding profit margins. We are confident in our capacity to provide lasting value for our clients, partners, and shareholders in the future."
This version maintains the essence of the original article while presenting the information with a fresh perspective.