NBA Announces Expanded $1 Billion Partnership with Spotradar
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On Wednesday, the National Basketball Association (NBA) announced an extensive, multi-year partnership with Sportradar AG, an international corporation that collects and provides sports data to several entities. Sportradar will be the exclusive provider of worldwide sports betting data for the NBA, WNBA, and NBA G League. This partnership will allow the NBA to create new products and maximize fan engagement through data-driven initiatives to capitalize on the growing sports betting interest.
Scope of the Partnership
The NBA previously had a partnership with Sportradar, making the company an official provider of real-time NBA statistics, which began in 2016. According to Sportico, the new eight-year contract starts in the 2023-24 NBA season and is worth $1 billion. Sportradar will continue as the official data provider for the NBA and its affiliates with plans for new data-driven offerings such as player tracking data. In addition, Sportradar plans to develop a dedicated team focused on innovation and enrichment of the fan experience through data-driven initiatives.
With player prop bets growing in popularity, player tracking data is integral to the accuracy of these wagers and could lead to more specific bets in the future. Sportsbooks could allow bettors to place a wager on whether the next Steph Curry three-point shot will be made from the corner or the top of the key, for example. In Europe, which has a more developed sports betting market, these in-game wagers are commonplace and quite popular.
Carsten Koerl, Sportradar chief executive, spoke about the company’s belief that the partnership will generate “significant revenue” and provide the opportunity to develop “exciting solutions across our teams, betting, and sports entertainment verticals.” Scott Kauffman-Ross, NBA senior vice president, spoke about Sportradar’s ongoing status as a “terrific partner” and the ability moving forward to “utilize data and insights to create new fan experiences and innovate around the NBA globally.”
Sportradar Q3 Success
Sportradar reported excellent numbers for Q3 in 2021 with $158.7 million in revenue, a 30% increase year-over-year. United States businesses generated $22 million in revenue during Q3, a 119% increase year-over-year. Sportradar expects full-year total revenue to fall somewhere between $641 million and $644 million. According to Sportradar, $125 billion will be bet on the NBA worldwide in 2021, and that global market will help further increase Sportradar’s revenue as part of this newly expanded partnership.
It’s been a very eventful year for Sportradar as they went public in September after raising $513 million through an IPO, giving the company a valuation of just under $8 billion. The NBA will receive a 3% stake in the public company as part of the expanded partnership. Sportradar AG (SRAD) stock was up as much as 7% on Wednesday following the announcement of the partnership. The NBA’s stake will be held throughout their partnership with Sportradar and held in Class A ordinary shares on a fully diluted basis.
Sportradar has also had an eventful year from a partnerships and acquisitions standpoint. Earlier this year, Sportradar acquired Synergy Sports and InteractSport, two sports data providers. Synergy Sports is focused on college sports, while Interact Sport has expertise in cricket. In August, Sportradar announced an extended partnership with FanDuel, an official sports betting partner of the NBA, that will run through 2028. In addition to the NBA, Sportradar has official data deals with rights holders such as the NHL, UEFA, the International Tennis Federation (ITF), and the International Cricket Council (ICC).
