FAIRFAX, Va. – Sports Illustrated magazine is facing significant staff layoffs after its publisher, The Arena Group, failed to pay its licensing fees to the magazine’s parent company. The magazine’s owner, Authentic Brands Group, announced that it had terminated its licensing agreement with The Arena Group but remained committed to continuing the publication of the 70-year-old magazine.
Authentic Brands Group stated that it ended the deal due to The Arena Group’s failure to pay its quarterly license fee and despite being given a notice of breach and an opportunity to resolve the issue. The Arena Group responded by saying that it is in talks with Authentic Brands Group and plans to continue producing Sports Illustrated until the matter is resolved.
The union representing 82 Sports Illustrated employees, which amounts to about 80% of the magazine’s staff, raised concerns about the potential layoffs. The union stated that all of its union-represented staff members were at risk of losing their jobs. The Arena Group’s stewardship of Sports Illustrated has been criticized, with the union describing the past four years as difficult.
This announcement from Sports Illustrated comes at a time when several major journalism publications are also facing staff cuts. The Los Angeles Times employees are currently staging a walkout to protest planned layoffs, and Condé Nast recently announced staff cuts at Pitchfork as part of a restructuring that will integrate the music website into GQ magazine.
Sports Illustrated made headlines in November when reports surfaced accusing the magazine of publishing AI-generated stories under the names and photos of fake journalists. Despite these challenges, Authentic Brands Group expressed confidence that the Sports Illustrated brand would continue to evolve and grow to serve sports news readers, sports fans, and consumers.
The future of Sports Illustrated and its remaining staff members remains uncertain as negotiations between Authentic Brands Group and The Arena Group continue. Alongside the broader struggles of the journalism industry, the fate of Sports Illustrated serves as a reminder of the challenges facing traditional media outlets in the digital age.