Sportradar experiences rollercoaster first day of public trading

Sportradar has endured a mixed debut on Nasdaq following the launch of its IPO.

Nineteen million shares were initially priced at $27 based on a range of between $25-$28, but later closed at just $25.05, fluctuating between a low of $24.20 and a high of $27.03.

The Switzerland-based data provider has raised more than $513m from the IPO.

However, wider trading in public gaming stocks dipped amid a $14bn drop in the value of Macau-based casino operator stocks following the launch of a wide-ranging government review of casino regulations.

The declining stocks included Wynn Macau, which saw its value slump by 34%, with Sands China dropping 28%.

Fellow operators MGM Resorts China, Galaxy Entertainment, SJM and Melco Entertainment also saw significant declines during yesterday’s trading.

Sportradar CEO Carsten Koerl rang the opening bell at Nasdaq in New York alongside NBA legend Michael Jordan, who is one of the firm’s largest shareholders.

Koerl said: “It is a testament to the ambition, originality and resourcefulness of our employees, the strength and commitment of our partners, the confidence and support of our investors and the vision of our customers.

“Moving forward, we’ll continue to propel digital transformation across the sports ecosystem as a result of our dedication to developing the most innovative products and solutions that drive fan engagement,” he added.

Sportradar had previously been expected to pursue a reverse merger with US-based SPAC Horizon Acquisition Corp. II.

Sportradar initially signed a letter of intent to pursue that strategy in March but it pivoted to a traditional IPO strategy in August.

Sportradar CCO Ed Blonk explained to EGR that the firm had always been open to both methods of going public.

“A dual approach was always under consideration,” Blonk said.

“However, at a certain point, the board expressed its belief that the more traditional IPO route was more beneficial for Sportradar in the long term.

“Although we withdrew the SPAC deal, Horizon was part of our IPO today and we continue to have a strong relationship with the firm going forward,” Blonk added.

He revealed the data giant would look to augment its existing technology base with the proceeds of the IPO but that investment would not be confined to the US market.

“We are still looking forward to large market opportunities, those that are growing in the sports betting space but also in the media space, with the teams and leagues we currently serve,” Blonk explained.

“We want to accelerate our growth by investing in both technology and investing in people. That’s the same strategy we have used in several recent acquisitions geared towards acceleration and that’s something we’re keen to continue with the IPO,” he added.

Blonk hailed the firm’s star-studded line up of shareholders including American billionaire entrepreneur Mark Cuban and Los Angeles Lakers and DraftKings part-owner Todd Boehly as continued positive influences for the firm.

“They were parts of early investments in the US market and were instrumental in helping and utilising not only their networks but also their knowledge about sport, the knowledge about the importance of data but also the knowledge about how to engage fans,” Blonk explained.

“They all have a tremendous track record when it comes to investments, when it comes to technology and being leaders in each of their respective fields.

“They’ve been instrumental up to today but will remain instrumental because of the networks, advice and the overall relationship is a strong one,” he added.