January 21st 2024.
The once esteemed publication of Sports Illustrated has been caught in the midst of the ever-changing landscape of the journalism industry. On January 19th, the majority of the magazine's staff were unexpectedly let go. This decision came after the Arena Group, a company that holds Sports Illustrated within its vast portfolio, failed to fulfill their quarterly payment of $3.75 million to Authentic Brands Group. According to Axios, a dispute between ABG and the Arena Group resulted in the latter withholding their payment. As a result, the future of the beloved magazine brand is now uncertain.
Former CEO of the Arena Group, Ross Levinsohn, expressed his disappointment with the situation to Axios, stating, "The actions of this board and the treatment of Sports Illustrated's iconic brand and newsroom is a major disappointment. Our team worked tirelessly to rebuild great brands like SI during challenging times. To witness what is happening now is truly disheartening and one of the most disappointing moments in my professional career."
In an attempt to find a resolution, ABG is currently in talks with the Arena Group to renew their license, as well as considering other potential suitors who may be interested in licensing the brand. The Arena Group released a statement to Axios, declaring their support for whatever decision ABG makes regarding the Sports Illustrated license.
Despite the revocation of their publishing license, the Arena Group has stated that they will continue to produce Sports Illustrated until the situation is resolved. They also expressed their hope to be the company to lead SI into the future, but if not, they will assist with the transition to ensure the legacy of the publication is upheld.
The union representing Sports Illustrated staff also released a statement on January 19th via their Twitter account, addressing the recent layoffs. The union expects the Arena Group to honor their contract and treat their members fairly, as they have faced numerous difficulties over the past four years under the Arena Group's management. They also called on ABG to allow the continued publication of Sports Illustrated, which has been serving its audience for 70 years.
In a shocking turn of events, Levinsohn was fired after a report from Futurism accused Sports Illustrated of publishing articles written by artificial intelligence. The Arena Group swiftly replaced Levinsohn with Manoj Bhargava, the founder of the company responsible for the popular 5-Hour Energy Drink, according to BBC.
Sports Illustrated has undergone several changes in ownership in recent years. It was previously under the Time Inc. umbrella since its inception in 1954 until 2018 when Time Inc. was acquired by The Meredith Corp in January of that year. NPR reported that Meredith was looking to sell off assets that did not align with their core readership of women. In 2019, Sports Illustrated was sold to Authentic Brands for $119 million, with Meredith retaining publishing rights until 2021.
The potential downfall of Sports Illustrated comes during a tumultuous year for media layoffs, which has been the worst since 2020. Nieman Lab suggests that the constant acquisitions in journalism, such as the case of Sports Illustrated, are indicative of how the flaws of capitalism contribute to the decline of news media.
In light of these recent events, it is clear that Sports Illustrated's future is uncertain. As the beloved publication struggles to find its footing in the ever-changing landscape of journalism, it remains to be seen what lies ahead for this iconic brand. Stay tuned for updates on this developing story.
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