The publisher of Sports Illustrated, the Arena Group, has informed its employees about plans for significant layoffs, potentially affecting the entire staff.
This decision comes after the revocation of the license to use the iconic brand’s name in both print and digital formats by Authentic Brands Group.
In an email sent to employees on Friday morning, the Arena Group, responsible for operating Sports Illustrated and related properties, stated that Authentic Brands Group had revoked its marketing license. The email outlined the inevitable layoffs that would follow this license revocation, impacting the staff working on the Sports Illustrated brand.
The employee union of Sports Illustrated released a statement expressing concerns about the extent of the layoffs, suggesting that it could potentially affect a substantial number or even all of the NewsGuild workers represented. Mitch Goldich, NFL editor and unit chair, emphasized the union’s commitment to fighting for the publication’s standards and fair treatment of workers.
The guild’s statement also called on Authentic Brands Group to ensure the continued publication of Sports Illustrated, which has been serving its audience for nearly 70 years.
In response, the Arena Group issued a statement on Friday, revealing ongoing negotiations with Authentic regarding the license. The group expressed its commitment to delivering quality content despite the challenges.
The Arena Group acknowledged its failure to make a quarterly payment of $3.75 million, leading Authentic Brands Group to signal its intention to terminate the licensing agreement. Consequently, the Arena Group announced a significant reduction in its workforce of over 100 people. Authentic Brands Group did not immediately respond to requests for comment.
The Arena Group had acquired publishing rights from Authentic Brands Group in 2019 for a period of at least 10 years. However, the stewardship of Sports Illustrated has faced numerous challenges, including the firing of CEO Ross Levinsohn in December over public backlash related to the magazine’s alleged use of AI-generated stories.
Sports Illustrated, an iconic sports brand, has experienced a tumultuous six years. Meredith Publishing acquired it in 2018 as part of the Time Inc. purchase, and less than a year later, Meredith sold the magazine’s intellectual property to Authentic Brands Group for $110 million. ABG, known for owning the intellectual property of various brands and celebrities, subsequently made changes to the publication’s frequency, transitioning from a weekly to a biweekly format in 2018 and eventually becoming a monthly in 2020.
