Sports Illustrated is about to go under, or is it? After the Red Wedding-like announcement on Friday, there’s been something of a clarification concerning the massive layoffs staffers should expect at the publication. This development came after things went afoul with management over the licensing rights (via WaPo):
Much of the staff of Sports Illustrated, and possibly all remaining writers and editors, received layoff notices Friday, which could spell the end of a publication that for decades was the gold standard of sports journalism.
[…]
The layoffs come amid an ongoing dispute between Authentic Brands Group and the Arena Group, the two companies atop an unusual ownership structure for Sports Illustrated. ABG, which owns the brand, is a licensing company that owns the brands of celebrities such as Marilyn Monroe and Elvis Presley. Arena Group pays ABG $15 million a year for the rights to publish Sports Illustrated in print and online.
Earlier this month, the Arena Group missed a $3.75 million payment to ABG, which ABG said violated the terms of its licensing deal. An SEC filing Thursday said Arena’s publishing license was terminated.
To correct some erroneous reporting, Matt Lombardi of the Arena Group: "We are going to continue to operate Sports Illustrated. ... Either Arena or someone else is going to have the license to operate Sports Illustrated."
— Pat Forde (@ByPatForde) January 19, 2024
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The entire staff was not laid off. There still is a website and a magazine. That said: Ugly, brutal day with many layoffs. Nothing quite like hearing colleagues and friends saying they just got termination emails in real time while on a Union zoom call.
— Pat Forde (@ByPatForde) January 19, 2024
So, what’s the new update with the magazine? They will reportedly continue publishing issues, and the website will remain operational, but most of its staff should expect to be fired. It’s the ‘Weekend at Bernie’s’ phase of Sports Illustrated, huh? There’s a body, but it’s dead. The lights are on, but no one’s home. The magazine will remain, but virtually everyone working for it will be terminated now. Sports Illustrated is now the journalistic equivalent of being brain-dead.
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