Friday, March 29, 2024

Sports Illustrated publisher Authentic Brand Sports lays off most of staff

Sports Illustrated, once considered a pinnacle of sports journalism, faces an uncertain future as its owner, Authentic Brands Group (ABG), officially revoked the license under which the Arena Group operates the magazine. This move has led to significant layoffs, with the possibility of further cuts. The union representing Sports Illustrated expressed its commitment to fight for the magazine’s publication, but the future now rests in the hands of ABG.

The recent developments stem from the termination of the licensing deal between Meredith and The Arena Group, which allowed Arena to publish Sports Illustrated in print and digital formats. The deal was valued at $110 million when ABG acquired Sports Illustrated from Meredith in 2019. However, Arena’s failure to make a nearly $4 million payment resulted in the termination of the licensing agreement.

This marks another challenging chapter for Sports Illustrated, which faced layoffs and financial difficulties in 2019. The union has called on ABG to ensure the continued publication of Sports Illustrated and to honor its legacy of serving audiences for nearly 70 years.

In addition to financial struggles, Sports Illustrated faced scrutiny in November when reports emerged that the website published AI-generated articles with fake names and biographies. The magazine’s storied history and impact on sports journalism make its uncertain future a matter of concern and reflection on the changing landscape of media.

While the company denied the use of AI in content creation, it acknowledged that a third party, AdVon Commerce, produced content under pseudonyms. The relationship with AdVon Commerce was promptly terminated.

Sports Illustrated, with a rich history dating back to 1936, was once synonymous with high-quality sports journalism, capturing iconic moments through its covers and prestigious awards. However, changes in ownership and licensing agreements, including the sale to Authentic Brands Group in 2019, marked a period of struggle for the magazine’s digital presence under The Arena Group’s stewardship.

As the situation unfolds, the uncertainty surrounding Sports Illustrated’s future raises questions about the challenges faced by traditional media outlets in adapting to the evolving digital landscape and maintaining editorial integrity.

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