Altenar Seeks to Halt Swiss Arbitration in U.S. Legal Dispute with Sportradar

Altenar has requested the United States District Court for New Jersey not to permit Sportradar to transfer its legal dispute regarding sports data in the U.S. to a private arbitration process in Switzerland. The request, filed on August 25 via an Opposition Memorandum, responds to Sportradar's motion on August 14 to suspend the court proceedings and move the case to arbitration. The core of the controversy centers on Altenar's allegation of monopolistic practices in the U.S. market, allegedly in violation of Section Two of the Sherman Act, which prohibits monopolization and anticompetitive conduct in the country.

Details of the Conflict Between Altenar and Sportradar

In the first quarter of the year, Altenar accused Sportradar of preventing its access to the U.S. sports betting market due to exclusive data agreements with leagues such as Major League Baseball (MLB) and the National Basketball Association (NBA). This situation, Altenar asserts, has effectively blocked its entry into the U.S. market. According to the submitted Memorandum, Altenar invested approximately $2 million in attempts to enter the U.S. market, participating in 19 expos, 41 business meetings, and 20 product demonstrations. However, it claims it has been unable to obtain a license in New Jersey because it requires finalizing a commercial agreement with a sportsbook, which proved unfeasible due to the lack of access to the data monopolized by Sportradar.

The Master Agreement and the International Arbitration Clause

The formal root of the litigation dates back to the Master Partner Agreement (MPA) signed in 2021 between both parties. This contract allowed Altenar to access data from Sportradar outside of the U.S. and included an arbitration clause to resolve disputes arising from its content. The MPA was subsequently rescinded, and according to Altenar, Sportradar promised that data supply for the U.S. market would be covered in an additional agreement, which was never finalized. Altenar contends that the agreed arbitration only applies to the conditions covered by the MPA and does not extend to the dispute centered on the U.S. market.

Altenar has indeed activated arbitration in Switzerland regarding issues directly linked to the MPA, but emphasizes that the conflict concerning access and entry conditions to the U.S. lies within the jurisdiction of U.S. courts. In the words of the opposition document submitted:

"Sportradar should not be able to invoke an arbitration clause to shield itself from lawsuits based in the U.S. when it has explicitly stated that the relevant agreement has no relation to that country."

Public Arguments from the Involved Parties

Spokespeople for Altenar openly expressed the company’s concern about the transparency and implications of confidential arbitration in Switzerland:

"Sportradar’s headquarters are in Switzerland; there it feels secure. Its attempt to move the case to confidential arbitration is a maneuver to evade U.S. justice and public oversight." — Altenar Spokesperson

On Sportradar's side, the official response has been the typical abstention in response to ongoing judicial processes:

"Sportradar does not comment on pending litigation." — Sportradar Spokesperson

Regulatory and Commercial Implications

The case highlights the difficulties for international providers to operate in regulated markets like New Jersey. The alleged impossibility of closing commercial agreements without access to Sportradar’s data, and the requirement for a state license dependent on those prior relationships, raises questions about competition, licensing, and equal access to the market.

Moreover, the litigation brings to light the difference between the application of arbitration clauses contained in international contracts and the jurisdiction of U.S. courts for matters affecting regulation and competition in the country. The outcome of this process could influence future contractual relationships between international providers and operators present in the U.S.

Context in the Provision of Sports Data and the U.S. Market

Sportradar maintains exclusive agreements for supplying sports data in the U.S. with leagues such as the MLB and the NBA. These relationships have been central to its positioning as an essential intermediary for operators and providers seeking to enter the U.S. market. Altenar has argued that this structure of agreements effectively limits competitive access to the regulated sports betting market and closes the door to new entrants who require those data sources to operate legally.

The judicial process continues without a definitive resolution. The court must decide whether the relevant dispute is heard before the judicial authority of New Jersey or whether it accepts the arbitration mechanism based on the 2021 agreement, but limited by its own conditions regarding territorial and subject matter scope.