New chapter for Sports Illustrated as staff redundancies are announced

Iconic sports publication Sports Illustrated, known for its compelling content and high standard of journalism, is undergoing significant staff reductions following the collapse of a crucial licensing agreement. The Arena Group, responsible for operating the Sports Illustrated brand, announced last week that the marketing license granted by Authentic Brands Group (ABG) has been rescinded.

Magazine and website will continue

Contrary to initial reports of a complete staff layoff, senior writer Pat Forde clarified that while there were numerous layoffs, the magazine and its website will continue to operate. The publication’s union indicated that the layoffs may potentially affect all NewsGuild-represented workers.

The revocation of the licence has led to necessary staff layoffs within the SI brand. Some employees will face immediate termination, while others will be required to work until the end of the notice period. The magazine’s union expressed commitment to advocating for the magazine’s publication, emphasizing that the future of Sports Illustrated now rests with its owner, Authentic Brands Group.

Seven decades of service

The union urged ABG to ensure the ongoing publication of Sports Illustrated, which was established nearly seven decades ago, to carry on providing its service to its audience. The challenging situation follows a difficult four-year period for Sports Illustrated under the stewardship of the Arena Group (formerly The Maven). In 2019, Meredith Corporation sold Sports Illustrated to Authentic Brands Group for $110 million, and an agreement with The Arena Group was terminated after a recent payment failure, effectively breaching the licensing agreement.

Authentic Brands Group (ABG) has expressed unwavering dedication to upholding the legacy of Sports Illustrated, assuring readers and fans of a continued premium experience. ABG aims to foster the growth of the Sports Illustrated brand, including its editorial arm, with confidence that it will evolve to cater to sports news readers, enthusiasts, and consumers.

Commitment to legacy

In light of the termination of the licensing agreement, ABG notified the Arena Group of its decision through a filing with the U.S. Securities and Exchange Commission. As a result, a $45 million fee became immediately due and payable to ABG, as stipulated in the agreement. Additionally, any outstanding and unvested warrants issued to ABG in connection with the agreement became immediately vested and exercisable.

ABG expressed its commitment to preserving the integrity of the traditional ad-supported Sports Illustrated media pillar. The company, known for owning the intellectual property of notable entities, including Muhammad Ali and Reebok, is confident in steering the brand toward continued success.

Sports Illustrated has encountered challenges in the past, including a significant staff layoff in 2019 and recent controversies, such as the publication of AI-generated articles with fabricated names.

Despite these hurdles, ABG remains committed to the publication’s legacy, tracing back to its inaugural issue in 1954. Since Meredith Corporation’s acquisition in 2018, followed by its sale to ABG in 2019, and subsequent changes, Sports Illustrated has undergone evolution, transitioning from a weekly to a monthly publication in 2020.

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