Lawrence Jackson/Associated Press
Publisher of sports illustrated plans to lay off most, and possibly all, of its staff for failing to pay licensing fees to the magazine's parent company.
The magazine's owner, Authentic Brands Group, announced in a statement that it has terminated its publishing license agreement with Arena Group, the magazine's publisher. sports illustration, However, he remained committed to continuing publication of the magazine, which has a history of 70 years.
“We are confident that the brand will continue to evolve and grow in ways that benefit sports news readers, sports fans, and consumers,” the statement added.
Authentic announced Thursday that it had terminated the contract. ”This was the result of the company's failure to pay quarterly license fees despite being given notice of the violation and an opportunity to cure the violation. ”
Arena Group said in a statement that it is in negotiations with Authentic and will continue to produce the book despite having its publishing license revoked. sports illustrated “Until this is resolved.”
Labor unions representing 82 sports illustrated The magazine's employees, who represent about 80% of its workforce, said in a statement Friday that all union-represented employees are at risk of being fired.
“Today is another difficult day in a difficult four years for Sports Illustrated under the management of Arena Group (formerly The Maven),” the union said. stated in a statement.
News of the job cuts comes a day after publisher Arena Group announced “significant reductions” in its staff of 100 employees, citing “significant debt” and unpaid bills.
Front Office Sports, which first reported the news of the mass layoffs, reported that the company recently defaulted on a $2.8 million payment to Authentic.
sports illustrated The company made headlines in November when a report surfaced accusing it of publishing AI-generated articles using the names and photos of fake journalists.
This is the latest major journalism publication to face layoffs on the same day as employee cuts. Los Angeles Times They are on strike to protest planned layoffs. Earlier this week, Condé Nast announced layoffs at Pitchfork as part of a reorganization of its music website. GQ magazine.