The UK’s Competitions and Markets Authority (CMA) will investigate the proposed acquisition of IMG Arena by Sportradar amid fears it could negatively impact the wider market.
Sportradar struck a deal to acquire IMG Arena from Endeavor Group in March this year. The transaction is valued at approximately $225 million (€193 million).
However, several months after this agreement, the CMA has raised concerns over potential impact on competition in the sports betting data segment. This is focused on how a combined Sportradar-IMG Arena business would lessen competition within the market.
As such, the CMA last Friday launched a preliminary “invitation to comment”. This will allow interested parties to submit views on the impact the transaction could have on competition in the UK. Comments can be submitted any time between 11 July and 25 July.
After this period, the CMA will consider the comments and decide on the next step. The next step in phase one of the process is to launch a merger inquiry, with an initial decision following.
“The CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services,” the CMA said.
“This invitation to comment is the first part of the CMA’s information-gathering process. To assist it with this assessment, the CMA invites comments on the transaction from any interested party.”
What could a Sportradar-run IMG Arena look like?
Sportradar confirmed the IMG Arena acquisition during its 2024 earnings call. Should the deal go ahead, Sportradar would add approximately 70 global betting rights to its wider portfolio.
IMG Arena’s rights cover 39,000 “official data events” and 30,000 streaming events. Among its properties are leading tennis events Wimbledon and the US Open, as well as golf’s PGA Tour.
While the entire deal is valued at $225 million, this total will be split. Former owner Endeavor will pay $125 million to Sportradar, while $100 million in cash repayments will be made by Endeavor to IMG Arena’s sports rightsholders. Meanwhile, Sportradar will take the costs of operating the business unit off of Endeavor’s books.
Sportradar CEO Carsten Koerl said the acquisition would allow the group to “realise the full economic potential” of the IMG Arena portfolio.
The deal is separate to the proposed management buyout of OpenBet. Proposed in November 2024, the $450 million buyout completed in March this year, with OpenBet CEO Jordan Levin and other senior executives taking charge.
Endeavor had put IMG Arena and OpenBet up for sale following its $13 billion private equity buyout by Silver Lake in August 2024.
Neither Sportradar nor Endeavor have commented on the CMA inquiry. The deal had been due to close before the end of the year.
The CMA will accept comments on the Sportradar-IMG Arena deal until 25 July.