Sports Illustrated to cut jobs in major layoff
OAN’s Abril Elfi
9:09 AM – Saturday, January 20, 2024
Sports Illustrated’s publisher intends to fire the majority of its staff journalists after struggling to pay the magazine’s parent company’s licensing fees.
The owner of the magazine, Authentic Brands Group, announced in a statement on Friday that it had terminated its license with the publisher, The Arena Group, to publish Sports Illustrated but that it was still committed to the publication of the seventy-year-old magazine.
“We are confident that going forward, the brand will continue to evolve and grow in a way that serves sports news readers, sports fans, and consumers,” it added in the statement.
Authentic said it terminated the deal “as a result of the company’s failure to pay its quarterly license fee despite being given a notice of breach and an opportunity to cure the breach.”
In a statement, the Arena Group said that, even though its publishing license was revoked, it is still in communication with Authentic and will keep up Sports Illustrated production “until this is resolved.”
All 82 Sports Illustrated employees, or roughly 80% of the magazine’s workforce, are represented by a union, which stated in a statement on Friday that all of its union-represented employees faced the possibility of being let go.
“This is another difficult day in what has been a difficult four years for Sports Illustrated under Arena Group (previously The Maven) stewardship,” the union said in a statement.
The announcement comes as the magazine has been facing backlash for having transgender Singer Kim Petras on its cover.
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Why did Authentic Brands Group terminate its license with The Arena Group over failure to pay licensing fees?
Sports Illustrated’s publisher, The Arena Group, is set to lay off the majority of its staff journalists due to financial difficulties. The decision comes after the parent company of the magazine, Authentic Brands Group, terminated its license with The Arena Group over failure to pay licensing fees. Despite this, Authentic Brands Group has expressed its commitment to continuing the publication of Sports Illustrated.
In a statement released on Friday, Authentic Brands Group stated, “We are confident that going forward, the brand will continue to evolve and grow in a way that serves sports news readers, sports fans, and consumers.” The company terminated the licensing deal due to The Arena Group’s failure to pay the quarterly license fee, despite being given notice and an opportunity to rectify the breach.
The Arena Group, in its response, confirmed that although its publishing license had been revoked, it was still in communication with Authentic Brands Group and would continue producing Sports Illustrated until the issue is resolved. However, all 82 employees of Sports Illustrated, which accounts for approximately 80% of the workforce, face the possibility of being laid off. These employees are represented by a union, which expressed its concern over the situation.
“This is another difficult day in what has been a difficult four years for Sports Illustrated under Arena Group (previously The Maven) stewardship,” the union stated. The union’s statement indicates that this is not the first challenge the magazine has faced under The Arena Group’s ownership.
The recent controversy surrounding the magazine’s cover featuring transgender singer Kim Petras has also contributed to the backlash received by Sports Illustrated. The announcement of the layoffs comes shortly after this cover was released. Oli London, a prominent figure on Twitter, tweeted, “Sports Illustrated lays off almost all of its staff just months after featuring Transgender singer Kim Petras on the cover.”
It remains to be seen how Sports Illustrated will navigate these challenges and maintain its position as a leading sports magazine. The magazine has a rich history spanning seventy years and has been a staple in the sports news industry. As Authentic Brands Group takes control of the publication, sports news readers and fans will eagerly await the magazine’s future direction and growth.
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