Sportradar Group rejects Muddy Waters Research claims
Sportradar Group AG has rejected allegations it facilitated illegal gambling activity, after a short seller report triggered a sharp sell-off in its shares and prompted a legal investigation in the United States.
The company’s stock fell more than 22% following the publication of a report by Muddy Waters Research, which alleged Sportradar had provided data services to operators in black and grey markets. The report claimed it had identified dozens of clients allegedly operating illegally across multiple jurisdictions.
In response, chief executive Carsten Koerl described the claims as “false, misleading and defamatory”, stating they were designed to manipulate the company’s share price for the benefit of short sellers.
MORE: Gambling in the USA
“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,” he sad.
“I take this as a personal attack considering my position and responsibility I have for investors, clients, partners and employees.
“I have been in this industry for nearly 30 years. I founded bwin (originally betandwin) in 1997, and Sportradar in 2001. Over those three decades, I have watched this industry evolve from the shadows into a highly regulated, technology-driven global powerhouse.
“Along the way, I have guided two highly successful IPOs that created multi-billions in wealth for our investors, shareholders, and employees. I built Sportradar to give bookmakers and fans the tools they need to wager safely on their favourite matches. I know this business down to its microprocessors.
“So when short sellers with no operational history in sports technology question my reputation and the organization I founded, I again take it personally.
“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.
“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.
“While the organization will address the allegations in due course with the appropriate facts, I want to be absolutely clear about how we operate.”
Separately, Kessler Topaz Meltzer & Check said it is investigating potential securities law violations on behalf of investors, who they are urging to come forward.
Sportradar, which provides data and technology to major global sports leagues and betting sites, said it would continue to engage with stakeholders as the situation develops.
