The media corporation responsible for publishing Sports Illustrated, an American sports magazine, has lost its license to do so, causing further difficulties for the publication. Employees stated that the future of the illustrious title was uncertain and that they had been informed to expect widespread layoffs. Owner of Sports Illustrated, Authentic Brands Group, declared that “its editorial arm” and the brand would continue. The license was still being discussed, according to publisher Arena Group. A firm spokesperson stated, “We are in active discussions with Authentic Brands Group… but we understand we aren’t the only ones.”
After its debut in 1954, Sports Illustrated stood as the top sports journalism publication in the United States for many years. Renowned for employing athletics as a springboard to explore more general topics, its swimsuit issues frequently provoked debate and its covers were much sought after by athletes. However, it has suffered as more people read magazines and newspapers online and as advertising moves there. The title was acquired by Authentic Brands Group in 2019 for $110 million (£85.5 million). The company is renowned for snatching up distressed brands, particularly retail names, and licensing them to operators.
According to documents filed with banking regulators, it had informed Arena earlier this month that it intended to terminate their agreement after Arena failed to make a $3.75 million payment. “Authentic Brands stated in a statement on Friday that “we are committed to ensuring that the Sports Illustrated media pillar, which is funded by traditional advertisements, has best in class stewardship to preserve the total integrity of the brand’s past.” According to an Arena representative, Sports Illustrated will be produced up until the licensing problem is fixed. In addition, regulatory documents show that it currently owes Authentic a $45 million fee as a result of the cancelation.
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