Sports Illustrated has initiated a significant round of layoffs following Arena Group Holdings’ failure to fulfill a licensing payment to Authentic Brands Group, as detailed in a securities filing. The NewGuild of New York, representing approximately 80 editorial workers at the magazine, and the Sports Illustrated Union issued a statement early on Friday, expressing concerns that “possibly all” of its guild-represented staffers could be impacted by the layoffs.
The decision to lay off a substantial number of Guild-represented workers at Sports Illustrated was attributed to Authentic Brands Group revoking Arena’s license to publish the magazine. This development comes after a challenging period for Sports Illustrated during Arena Group’s stewardship, which was previously known as The Maven.
Arena Group Holdings’ failure to make a $3.75 million quarterly licensing payment to Authentic Brands Group led to the termination of the licensing agreement, as per the terms of the deal. This termination triggered a $45 million payment and prompted the company to announce a reduction of a third of its staff, including those at Sports Illustrated, with anticipated severance charges ranging from $5 million to $7 million.
The future of the magazine remains uncertain if Authentic Brands Group regains control of the publication. While ABG had previously licensed the Sports Illustrated brand for various commercial ventures, it had indicated disinterest in operating a news publication when it licensed the publication rights to Arena, then known as Maven, in 2019.
In response to these developments, Authentic Brands Group stated that the publication will persist. The company emphasized its commitment to ensuring the continued success and growth of the Sports Illustrated brand, including its editorial arm, while preserving its nearly 70-year legacy. ABG expressed confidence in the brand’s future evolution and growth to serve sports news readers, fans, and consumers, affirming its dedication to upholding the brand’s integrity.
