“Layoffs imperil Sports Illustrated as owner, publisher battle over money” 📰 (Updated)
Sports Illustrated made waves again when news broke that the licensing deal between Authentic Brands Group (owner of the Sports Illustrated I.P.) and The Arena Group (publisher of Sports Illustrated) weren’t on the same page.
Those directly impacted today were the staff - whose union put out a statement about “mass layoffs” on X (Twitter).
Ben Strauss at the Washington Post reported:
“Much of the staff of Sports Illustrated, and possibly all remaining writers and editors, received layoff notices Friday, which essentially could spell the end of a publication that for decades was the gold standard of sports journalism.”
The issue started earlier this month when The Arena Group missed a monthly payment in what’s being characterized as negotiation tactic:
“If a company doesn’t pay me, I breach,” Jamie Salter, the CEO of ABG, said in an interview with The Washington Post on Friday, adding that Bhargava has sought to lower the licensing fee. “He’s trying to negotiate with me and I told him to f--- off. He tried to change the agreement. When you sign a deal with us, you live by the deal."
However, later statements left less wiggle room:
“After this story was published, Dan Dienst, executive vice chairman of tactical opportunities for ABG, corrected Salter, saying the period to pay had passed and the license had been terminated. A spokesman for Arena Group did not immediately reply to a request for comment.
It remains a possibility that the two sides could renegotiate a new license.”
Where does that leave the staff?
“The back and forth between ABG and the Arena Group has left Sports Illustrated and its staffers in limbo — and the magazine in peril.
ABG has sought to monetize the SI brand with planned resorts and casinos.”
-Read More from Strauss at the Washington Post or listen to his recent interview on NPR:
The union of the staff press release:
A.J. Perez from Front Office Sports also adds: “Future Unclear”
“Authentic’s move to terminate Arena’s license and Arena’s eliminating SI’s staff signals a shift in the company that operates SI, weeks after Manoj Bhargava, the founder of 5-Hour Energy, introduced himself to employees of Arena, including SI, as their new leader.”
-Read More about the Bhargava’s introductory meeting / town-hall
“Since then, Authentic has had exploratory conversations with and reached out to multiple parties about the possibility of taking over Arena’s role with SI, industry sources with knowledge of the situation tell FOS.”
“It’s unclear whether Authentic will indeed pursue the path of establishing a new operator or will now allow Arena to renegotiate its current deal. Sources tell FOS, though, that Authentic’s goal is to move the process along as quickly as possible. One way or another, says one insider, “Authentic will see Sports Illustrated through a necessary evolution.”
-Read More from Perez at Front Office Sports on the shake up
More Reports:
NY Times - Sports Illustrated Thrown Into Chaos With Mass Layoffs
CNN - Sports Illustrated’s publisher lays off most of its staff, union says
ABC News - Sports Illustrated's publisher terminates most of staff in mass layoff, union says
CBS News - Sports Illustrated lays off most or all of its workers, union says
Awful Announcing - Sports Illustrated owner Authentic Brands Group says publication ‘will not go dark’ despite Arena license revocation