Sports Illustrated, the renowned sports journalism magazine, is facing layoffs after a licensing deal with Authentic Brands Group (ABG) fell through. The magazine’s publisher announced the unfortunate news on Friday, leaving the publication’s union concerned about the future of the magazine and its staff.
The layoff could potentially affect all the NewsGuild workers represented by the union. However, senior writer Pat Forde clarified on social media that the entire staff had not been laid off, stating, “There still is a website and a magazine. That said: Ugly, brutal day with many layoffs.”
The Arena Group, which operates the Sports Illustrated brand, revealed in an email to staff that ABG had revoked its marketing license. Consequently, staff members working on the SI brand will be laid off. Some employees will be terminated immediately, while others will be expected to work through the notice period.
The magazine’s union expressed its determination to fight for the continued publication of Sports Illustrated. However, they acknowledged that the future of the magazine now rests in the hands of Authentic Brands Group. The union issued a statement saying, “We are calling on ABG to ensure the continued publication of SI and allow it to serve our audience in the way it has for nearly 70 years.”
In 2019, Meredith sold Sports Illustrated to Authentic Brands Group for $110 million. As part of the deal, The Arena Group was responsible for publishing SI in both print and digital formats. However, the licensing agreement was terminated after Arena failed to make a payment of nearly $4 million. This termination effectively broke the licensing deal.
Authentic Brands Group expressed its commitment to delivering a premium experience to Sports Illustrated readers and fans across various platforms. They assured that the brand would continue to evolve and grow while preserving its legacy and integrity.
In a filing to the U.S. Securities and Exchange Commission, Authentic Brands Group notified The Arena Group that it intended to terminate the licensing agreement. As a result, a fee of $45 million became immediately due and payable by The Arena Group to ABG. Additionally, any outstanding and unvested warrants to purchase shares of the company’s common stock issued to ABG would become immediately vested and exercisable upon termination of the agreement.
Sports Illustrated has faced challenges in the past, including a significant layoff of 30 percent of its staff in 2019 when Meredith sold the property. The magazine also made headlines in November when it was revealed that it had published AI-generated articles, some with fake names and biographies attached to them. In December, CEO Ross Levinsohn was fired.
Sports Illustrated, which was first published on August 16, 1954, as a weekly publication, transitioned to a monthly format in 2020 after Meredith acquired the magazine along with other properties of Time Inc.
The future of Sports Illustrated remains uncertain as it navigates through this challenging period. The magazine’s loyal readers and fans hope that it will continue to provide quality sports journalism despite the setbacks it has faced.
