Sports Illustrated’s publisher, The Arena Group, is facing a significant crisis as it plans to lay off a substantial number, possibly all, of its union-represented workers. This drastic measure comes after the magazine’s brand owner, Authentic Brands Group, revoked The Arena Group’s publishing rights due to a missed quarterly payment of approximately $3.75 million.
The Sports Illustrated Union released a statement on Friday, highlighting the challenges faced by the magazine under The Arena Group’s management, previously known as The Maven. The union called upon Authentic Brands Group to ensure the continuity of Sports Illustrated, which has been a staple in sports journalism for nearly seven decades.
According to The Arena Group, some workers will be terminated immediately, while others will continue through their legally required notice period. The company has assured that all employees affected by the layoffs will receive severance pay.
The turmoil at Sports Illustrated began following its acquisition by Authentic Brands Group in 2018. In 2019, Authentic Brands Group licensed the publishing rights of the magazine to The Arena Group under a 10-year agreement. The current financial difficulties and resulting layoffs mark a significant turn in the magazine’s long-standing history.
