The Catapult Group International Ltd (ASX: CAT) share price was out of form on Tuesday and dropped notably lower.
The sports analytics and wearables company's shares fell as much as 5.5% to $1.69 at the close.
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Why did the Catapult share price drop lower?
Although Catapult released an update on its customer-led innovation, I suspect that something else could be weighing on investor sentiment today.
On the other side of the world in the United Kingdom, over 400 current and former professional soccer players are understood to have signed up to something called "Project Red Card."
According to the Athletic, these players are raising questions regarding who owns and profits from the data generated when they play.
Project Red Card is looking to take legal action against betting, gaming, and data-processing companies for six years' worth of lost earnings. The players believe their statistics are being used without their permission and without any sort of compensation.
Given how Catapult has a long history of providing broadcasters with in-game data, investors may be concerned that Project Red Card could have an impact on this revenue stream.
Though, it is worth noting that legally you can't trademark or copyright a fact that is already in the public domain. So the aforementioned project, could quite easily fall flat on its face before it even gathers pace.
Nevertheless, it will be interesting to follow developments and see what impact this has on future sports data collection and usage.
Should you buy the dip?
Today's decline means that Catapult's shares are now down 23% from their 52-week high.
While this leaves them trading at a potentially attractive level for a long term investment, I would suggest investors wait for its full year results release and FY 2021 guidance before picking up shares.
