Sports Illustrated Faces Uncertain Future After Widespread Layoffs
Sports Illustrated is facing significant layoffs with reports indicating that possibly all of its unionized staff may be let go. The turmoil follows financial struggles and a dispute between the brand's owner, Authentic Brands Group (ABG), and The Arena Group, which holds the rights to publish the magazine. The Arena Group recently missed a payment, prompting ABG to revoke Sports Illustrated's license to use the SI name.
The issues at Sports Illustrated coincide with an ownership change in recent years and a challenging shift toward serving a digital audience. ABG, which purchased Sports Illustrated in 2019 for $110 million, also controls the rights to various celebrity brands. Despite the current predicament, both ABG and The Arena Group have expressed intentions to continue operating the Sports Illustrated website and magazine. Authentic is reportedly in discussions with Bridge Media for a potential partnership following the revocation of the license with The Arena Group, which owes ABG $45 million according to a recent SEC filing.
Simultaneously, the Los Angeles Times has also announced planned layoffs, with its union seeking detailed information about the number of staff affected and the cost savings sought by management. This development marks the first union work stoppage in the paper's 143-year history. The unfolding situation at Sports Illustrated could lead to the loss of around 20% of its staff, or about 100 reporters, as the industry grapples with evolving business models and changing consumption patterns of news media.
