Having announced an all-star ‘US Advisory Board’, with business and sports heavyweights such as Mark Cuban and Michael Jordan guiding its initiatives.
SBC caught up with Ulrich Harmuth Managing Director of Sportradar AG to discuss the company’s ambitious market plans.
Harmuth details why Sportradar set-up its ‘US Advisory Board’, the company’s entry into the market and the core differences between US sports practices/trends at both commercial and consumer levels.
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SBC: Hi Ulrich and congratulations on setting up the Sportradar ‘US Advisory Board’, why was this collective needed for Sportradar’s operations and long-term market goals?
Ulrich Harmuth: Sportradar’s goal is to become the preeminent source for sports data services and products across the globe for leaders in technology and digital media, broadcasters, fantasy sports, social media and gaming. The Advisory Board will accelerate our ability to meet these objectives in the US. With their insights and guidance, we now seek to build a new suite of value-enhancing products and applications with a focus on one-of-a-kind fan experiences – such as the NFL’s Next Gen Stats – and end-user customization capabilities.
SBC: As a leading European sports data provider, why did you seek new investment for the US sports market?
UH: Our objective was to build stronger relationships in the US market. As a “European” company, we believe that we needed US expertise and relations, a US advisory board and also a US way of thinking within the company. The addition of Ted, Evan, Michael and Mark does just that. Sportradar was not seeking a financial investment so to speak, as the company is quite cash generative and debt free.
SBC: In a short space of time your team has gained significant traction in gaining data partnership with major US sporting organisations? Can you detail how this was achieved?
UH: In the past year, we have secured partnerships with NASCAR, the NFL and NHL. To win these partnerships, it was crucial to offer a true development partnership rather than a pure distribution deal. With new content like tracking data now available in real time and fans’ increasing hunger to consume entertaining data visualisations on multiple devices, the demand on data partners has increased significantly. With our focus on technology and development, Sportradar is well placed to offering the leagues a different type of partnership. As an example, we are building a state of the art research and analysis tool for the NFL that will be used by every team but also the League’s media and digital partners – allowing them to access historical data, in-season data and player tracking data – and deriving real-time implications from these data.
SBC: At a consumer level, how does US sports user consumption and engagement differ to European activities? How is Sportradar developing an effective insight product for US user habits and trends?
UH: The differences between the US sports fan and the European sports fan are not very drastic. Both are extremely passionate about their favourite players and teams. Both demand top content and resources to follow their favourite sports. However, every sport is different and also the media landscape differs between the US and Europe. From the beginning, we therefore put great emphasis on having a strong US team in place that is now supported by an experienced advisory board. Our close relationships to the NFL, NASCAR and NHL also help us to have immediate access to any development in the US market. Overall, we understand the US sports fan quite well.
SBC: Another unique aspect of US sports is its ownership, which is governed by a franchise model. How does this model differ to developing business with European sporting organisations and how does it impact commercial strategies of your US facing products?
UH: In particular, is the fact that most teams are owned by individuals who are fully committed to finding an edge and making their teams more successful … that is the great differentiator. By coming from a technology or media background, many team owners have pushed new initiatives that in the end become implemented league-wide. As a result, a lot of sports innovations have been developed in the US market first. Therefore we believe that by having a strong footprint in the US market, our company as a whole can take advantage from any new developments in the US market.
SBC: Finally we have seen new technologies, in media and entertainment target the US sports consumer in 2015. What impact are they having on the consumer, and how do you see the overall US sports market evolving?
UH: Two things stand out in the US market. First, fans are becoming more and more sophisticated with data and it has become incumbent of media companies to satisfy that thirst for information. Sportradar is the partner that allows companies from every sector of the sports industry to satisfy fans with rich data and content.
Another shift that is taking place, and will take time to sort itself out, is regulation around Daily Fantasy Sports. These games are driving fantasy sports, which is a significant part of the experience for US sports fans. The consumer clearly wants to play these daily games and Sportradar believes they are here to stay.
And of course, we see states like New Jersey pushing for the broad legalization of gambling. This will take even longer to sort itself out. If the US market decides that gambling has a bigger place in their society, Sportradar will be ready to shoot. In the meantime, we see tremendous opportunities with media companies.
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Ulrich Harmuth – Sportradar AG – Managing Director