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  "documentTitle": "Genius Sports Limited (GENI)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2021-08-05 00:00:00",
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  "notes": "The slide uses two side-by-side callouts to present external evidence from Moody's and Sportico, supporting the thesis of poor monetization and high licensing costs.",
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      "kind": "callout",
      "text": "Moody's: Sportradar is dependent on acquiring sports rights... the investment can underperform leading to impairment (for example the recent €38 million impairment of sports rights licenses for the NBA and NFL due to slower than expected development of US sports betting)",
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      "text": "Sportico: The two ratings opinions also provide a partial glimpse into Sportradar's financials... The write-down “highlights the initial execution risks associated with investing in the U.S. market,” Fitch stated. The lower EBITDA stems from the high licensing fees Sportradar has to pay to professional leagues.",
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      "text": "The lower EBITDA stems from the high licensing fees Sportradar has to pay to professional leagues.",
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      "text": "Based on multiple sources, it appears Sportradar had unexpected troubles with recent data rights deals as it has been “unable to monetize basketball data as expected”. Based on financials disclosed by rating agencies, Sportradar had a €38 million impairment. We agree with Sportico’s interpterion of the ratings notes, attributing Sportradar’s low EBITDA margins to its high licensing fees and “middleman” business model.",
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      "text": "\"Sportradar is dependent on acquiring sports rights, which represents a high fixed cost of the business. Although the upfront commitment does not guarantee cash flow, and the investment can underperform leading to impairment (for example the recent €38 million impairment of sports rights licenses for the NBA and NFL due to slower than expected development of US sports betting)\" — Moody's (October 30, 2020). \"The two ratings opinions also provide a partial glimpse into Sportradar's financials. Among them, the company has experienced a $42 million \"impairment\" of its NBA contract, according to Fitch. That likely means Sportradar has had to write down a portion of its NBA deal to account for being unable to monetize basketball data as expected.\" — Sportico (October 14, 2020).",
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      "text": "Reconciliation of Moodys-adjusted leverage table showing EBITDA adjustments including €38.4M impairment.",
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      "text": "Sportradar's Financial Struggle With Data Rights",
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