Sportradar CEO Carsten Koerl has released an open letter to shareholders, partners and the “global sports community,” regarding the accusations made within short seller reports of maintaining relationships with hundreds of illegal gambling operators.
“I am, first and foremost, a competitor. I am a lifelong sports fan, a die-hard supporter of my beloved Bayern Munich, and I play all sports with the exact same fierce spirit that I bring to business,” Koerl said.
“Yesterday, short seller reports launched an unfounded attack on Sportradar designed to create panic, place downward pressure on our stock price and profit from the disruption. I take this as a personal attack considering my position and responsibility I have for investors, clients, partners and employees.
“Having established the very processes for accurate data collection and provision, it is alarming to see so many false, misleading and defamatory statements about myself and the business designed to manipulate our stock price for the benefit of short sellers.”
The short seller study had allegedly found 270 unlicensed betting operators offering a variety of services similar to those provided by Sportradar, with the organization’s branding and tools also visible on many of the sites.
Sportradar rejected the claims as part of a statement released earlier on April 23, confirming it works exclusively with licensed operators and follows strict compliance and due diligence standards across its global operations.
Koerl continued: “There are numerous allegations in these reports that are either entirely false, poorly researched, deliberately taken out of context or, at best, repackaging the same tired stories we have heard for years.
“Then there are the specific claims regarding my supposed ties with Russian oligarchs. I believe these were thrown in to promote controversy and take advantage of the current news cycle.
“I bought shares in Liga Stavok, a licensed, regulated entity, several years ago, and when it no longer felt appropriate to invest in something perceived to be connected to a geopolitical conflict, I sold it. I made no profit from my original stake. To frame this as anything other than a principled exit is unfounded.”
A former Sportradar employee was quoted in the short seller reports, alleging that approximately one-third of the organization’s revenue is generated from deals with unlicensed operators.
Koerl believes Sportradar was targeted by short sellers because “we are the gold standard of the industry,” and also brought attention to the efforts made by Sportradar to counteract potential compliance issues.
“We have one of the most rigorous compliance processes in a complex, highly regulated industry. We are committed to full compliance with the applicable laws and regulations in each jurisdiction where we operate,” Koerl said.
“If there is an issue with a client in our portfolio, we have a robust compliance infrastructure in place to act immediately. We take this so seriously that we created a division dedicated solely to finding bookmakers who attempt to use our data illegally.”
At the time of writing, Sportradar has yet to confirm whether it would take legal action against the short seller entities, or if additional disclosures will follow.
Sportradar formed a new partnership with Brazil’s Liga Nacional de Basquete on 7 April, securing rights designed to support the league’s commercial growth and technological development
