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Read Full BioThe UK Competition and Markets Authority (CMA) is investigating the acquisition of IMG Arena by Sportradar for the potential lessening of competition in sports data and betting technology markets.
In an official statement, the CMA stated it aims to discover if the deal “may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
The government agency has issued an ‘invitation to comment’, designed to allow interested parties to “submit to the CMA any initial views on the impact that the transaction could have on competition in the UK.”
Addition of IMG Arena Portfolio Could Result In Monopoly
IMG Arena controls media and data rights for over 70 significant sports properties, including Wimbledon, the PGA Tour, three Grand Slam tennis tournaments, MLS, and UFC.
With Sportradar already holding the data rights to the NBA, MLB, and UEFA soccer competitions, the CMA is concerned that this could result in a monopoly of sports data.
A monopoly on data could lead Sportradar to drive up prices and squeeze out smaller data providers and startups.
If the CMA deems the threat to competition too severe, it may require Sportradar to license certain rights separately, or even block the merger completely.
Sportradar and IMG Arena Agree $225 Million Deal
In March this year, Sportradar and Endeavour, the owner of IMG Arena, announced they had reached an agreement for Sportradar to acquire IMG and its global sports betting portfolio.
The deal is worth $225 million, and under the terms of the agreement, Endeavour pays $125 million to Sportradar, with a further $100 million going toward cash prepayments for various rights holders.
Pending the outcome of the CMA investigation and approval of the transaction, it is set to be completed in the fourth quarter of this year.
Company Aims To Be ‘Engine of the Sports World’
Sportradar CEO Casrten Koerl commented on the deal, stating: “Our acquisition of IMG ARENA is a strategic move to accelerate revenue growth while integrating seamlessly into our platform, enhancing our relationships with key leagues and sportsbooks.”
The aim of the company is to become “the engine of the sports world” and Koerl noted that “Sportradar’s success is driven by the breadth of its sports coverage, a broad product portfolio, the leading technology, and a global distribution network.”
He is confident that the acquisition of IMG Arena will be a success, commenting, “Given our proven track record of maximizing ROI through our global betting rights deals and our strengthened position across tennis, basketball and soccer, we are confident in our ability to realize the full economic potential of this portfolio.”
US Market Driving Increases In Revenue
Sportradar reported substantial growth in revenue in Q1 this year, up 17% year-on-year to €311 million ($363 million).
Revenue in the US jumped 31%, primarily due to leading sportsbooks FanDuel and DraftKings using more of the data provider’s services.
The company invested heavily in new technology, staff, and the expansion of services last year, leading to a €1 million ($1.1 million) loss in the first quarter of 2024.
This was reversed in Q1 this year and turned into a €24 million ($28 million) profit.
Sportradar is expected to release Q2 2025 results on or before August 12. The invitation to comment on the merger at the CMA is open until July 25.
