Sports Illustrated Faces Mass Layoffs as License Revoked
The future of Sports Illustrated is uncertain as the publisher, The Arena Group, announced mass layoffs due to the revocation of its license to use the iconic brand’s name in print and digital. The troubled magazine has been grappling with reports of publishing AI-generated content, which has further contributed to its downfall. The Arena Group failed to make a $3.75 million quarterly licensing payment to Authentic Brands Group, leading to the significant reduction in its workforce of over 100 journalists.
The unionized workers at Sports Illustrated received a memo stating that some employees would be terminated immediately and paid in lieu of the 60-day notice period. Others would be expected to work through the notice period. Despite the license revocation, The Arena Group plans to continue producing Sports Illustrated until the issue is resolved. They expressed hope that either their company or another business would take SI forward, ensuring that the legacy of Sports Illustrated remains intact.
While layoffs loom over the magazine, the annual Swimsuit edition, known for launching the careers of supermodels like Cheryl Tiegs and Tyra Banks, has already been completed and will be released in the spring. Authentic Brands, owned by Canadian billionaire Jamie Salter, has stated that Sports Illustrated will continue, although it remains unclear who will be at the helm.
Several companies, including Vox, Essence, Penske Media, and former NBA star Junior Bridgeman, have expressed interest in licensing deals for Sports Illustrated. Authentic Brands is determined to ensure that the brand thrives and evolves while preserving its integrity and legacy.
The union members of Sports Illustrated have called on Authentic Brands to ensure the continued publication of SI. They have fought together to maintain the standard of this storied publication and ensure fair treatment for workers. The fight will continue to preserve the value they bring to the company.
Sports Illustrated, first published in 1954, was owned by Time Inc. until 2018 when it was acquired by Meredith. Shortly after, it was sold to Authentic Brands for $110 million. The magazine has been a staple in sports journalism, employing legendary sports writers and featuring iconic covers that captured the most significant moments in sports history.
The recent developments at Sports Illustrated have left many in the industry saddened. Rachel Nichols expressed her sadness for her Sports Illustrated friends, while ESPN’s Kevin Clark lamented the loss of the magazine’s starmaking vehicle. The impact of Sports Illustrated on the sports world cannot be understated, and its decline is a blow to the industry.
Sports Illustrated has been without a clear direction since the firing of CEO Ross Levinsohn, who faced criticism after reports of AI-generated content surfaced. The Arena Group’s majority stakeholder, Manoj Bhargava, took over as CEO but abruptly stepped down citing a conflict of interest. Jason Frankl of FTI Consulting has been appointed as Arena’s chief business transformation officer.
As Sports Illustrated faces mass layoffs and an uncertain future, the sports world mourns the potential loss of an iconic publication. The hope remains that the brand will find new stewardship and continue to evolve, ensuring that the legacy of Sports Illustrated lives on.
