Major League Baseball (MLB) has taken a stake in sports technology and data company Sportradar as part of a multi-year renewal of its deal with the company.
Sportradar will continue to function as MLB’s data and technology partner until 2032, with the deal dating back to 2019. The duo are particularly focused on leveraging AI to support the league’s AV content strategy.
In addition, Sportradar will continue distributing MLB statcast data and AV content across its client network of sportsbooks and media companies. MLB is keen to step up its presence in Latin America and Asia while taking advantage of the commercial potential of sports betting in the US and elsewhere.
“Sportradar has been a great partner to MLB, particularly helping us navigate the legalization and continued evolution of the global sports betting landscape,” said Kenny Gersh, MLB Executive Vice President, Media & Business Development.
“Over the course of our partnership, Sportradar has consistently developed great products utilizing MLB’s best-in-class data. MLB is delighted to continue innovating with Sportradar to create engaging products and services for MLB fans globally.”
The strengthening of ties between MLB and Sportradar shows the growing value betting revenue has for sports leagues both large and small. Sports betting has grown at a rapid rate in the US since the Supreme Court repealed the PASPA legislation preventing states from setting up licensed betting markets.
Since that moment in 2018, 38 states have approved licensed betting and there are around 30 licensed sportsbooks nationally. Betting on MLB is also popular internationally in other regulated markets. This has made the delivery of MLB data to sportsbooks a lucrative revenue stream for the league.
Licenced compliance requirements have made it important for leagues and bookmakers to ensure sports integrity is protected too, however. Sportradar has found an opportunity in this, with its Universal Fraud Detection System (UFDS) being utilised by several of its partner leagues including the MLB.
As stated above, a term of the deal will see MLB purchase an equity stake in Sportradar. This may further complement the league’s revenues as Sportradar maintains prominent partnerships with a number of other prominent sports organisations such as UEFA.
Carsten Koerl, Sportradar CEO, said: “We are thrilled to continue our long-standing partnership with MLB, and this agreement represents a new, exciting chapter in our journey together.
“Our collaboration is not only about leveraging cutting edge technology and content but also working together to create innovative products that enhance fan engagement and bring fans closer to the game.
“By combining our strengths, we can unlock new opportunities and reach more sports fans around the globe to shape the future of sports entertainment. This deal, which is immediately accretive to our business, will drive value for our shareholders as we continue to expand margins and generate strong cash flow.”
