Sports Illustrated Announces Layoffs After Failed Licensing Fees Payment

New York, United States United States of America
Arena Group, which had been previously licensed as a publisher for SI, had its license revoked due to this failure.
Sports Illustrated is a well-known sports magazine and website owned by Authentic Brands Group (ABG).
The decision to lay off most of the staff was made after ABG failed to pay licensing fees for Sports Illustrated's publishing rights.
Sports Illustrated Announces Layoffs After Failed Licensing Fees Payment

Sports Illustrated, a well-known sports magazine and website owned by Authentic Brands Group (ABG), has announced that it will be laying off most of its staff. The decision was made after ABG failed to pay the licensing fees for Sports Illustrated's publishing rights to Arena Group, which had been previously licensed as a publisher for SI. This led to the revocation of Arena's license by Authentic Brands Group and resulted in layoffs being announced on Friday.



Confidence

80%

Doubts
  • It is not clear if the licensing fees were due to a specific reason or if it was simply an oversight.
  • There may be other factors at play that are not mentioned in this article.

Sources

80%

  • Unique Points
    • Sports Illustrated is planning to lay off most of its journalists on staff.
    • The publisher of Sports Illustrated, The Arena Group, failed to pay its licensing fees and had a notice of breach revoked by Authentic Brands Group.
  • Accuracy
    • Sports Illustrated kept its magazine on top shelf of media in latter part of 20th century and photography was stuff of museum exhibits but transitioning to digital age has been challenging for SI as it found itself having to play catch-up with online upstarts like Deadspin, Bleacher Report and many others not to mention social media.
    • Ross Levinsohn, the veteran media exec who was CEO of The Arena Group, was ousted in December due to embarrassing revelation that SI had relied on AI-generated contributors who were not actual human writers. Less egregious but still troubling for many longtime readers and media watchers is that website came to rely on a network of poorly compensated freelance contributors instead of stable team of long form specialists.
    • The decline of Sports Illustrated never will stop being a shock even in a world where legacy media companies have struggled to make money as much as they used to
    • SI has become the late-night infomercial of sports publications since early 2020 as a monthly
  • Deception (50%)
    The article is deceptive in several ways. Firstly, the author does not disclose their identity or affiliation with any organization. Secondly, the article reports that Sports Illustrated's publisher plans to cut a significant number of its union-represented staff without providing any context on why this decision was made. The article also mentions that Authentic Brands Group ended its licensing agreement with The Arena Group but does not provide any details about what led to the termination of the deal or how it will affect Sports Illustrated's continued publication. Additionally, the article reports that a union representing 82 Sports Illustrated employees is at risk of being laid off without providing any information on why this decision was made or if there are other options available for these workers.
    • The author does not disclose their identity or affiliation with any organization.
  • Fallacies (85%)
    The article contains several fallacies. The author uses an appeal to authority by stating that Authentic Brands Group is the owner of Sports Illustrated and has ended its licensing agreement with The Arena Group without providing any evidence or context for this claim. Additionally, the author quotes a union representative who claims that all their staff members are at risk of being laid off, but does not provide any specific information about how many employees will be affected by these layoffs. This creates an ambiguity in the article and makes it difficult to determine if there is enough evidence to support this claim.
    • Authentic Brands Group is the owner of Sports Illustrated.
  • Bias (85%)
    The article reports that Sports Illustrated is planning to lay off most of its journalists on staff after failing to pay its licensing fees. The publisher's decision was made as a result of the company's failure to make payments despite being given notice and an opportunity to cure the breach. This suggests that there may be financial difficulties at Sports Illustrated, which could lead to further layoffs or even closure in the future.
    • Sports Illustrated grabbed headlines in November when reports surfaced with accusations that it had published stories generated through artificial intelligence under the names and photos of fake journalists
      • The publisher of Sports Illustrated is planning to lay off most — and possibly all — of its journalists on staff
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (0%)
        None Found At Time Of Publication

      60%

      • Unique Points
        • Sports Illustrated is getting laid off
        • The outlet's website had fresh stories on Friday suggesting a skeleton crew was still employed
        • Authentic Brands has received interest in licensing SI from Vox, Essence, Penske Media and Junior Bridgeman
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (50%)
        The article is deceptive in several ways. Firstly, the author claims that Sports Illustrated's publishing license has been revoked when it hasn't. The company Authentic Brands Group insists that SI will continue to be published and they are in talks with potential licensing partners like Vox, Essence, Penske Media and Junior Bridgeman. Secondly, the author claims that Arena Group is making significant reductions in its workforce of more than 100 journalists when it hasn't been confirmed how many employees will be terminated. The memo obtained by The Post states that some employees will be terminated immediately while others will have to work through their notice period. Lastly, the author claims that Sports Illustrated is practically rudderless since its CEO Ross Levinsohn was fired last month when in fact Manoj Bhargava took over as CEO and Jason Frankl of FTI Consulting was appointed as Arena's chief business transformation officer on the day Bhargava stepped down.
        • The author claims that Arena Group is making significant reductions in its workforce of more than 100 journalists when it hasn't been confirmed how many employees will be terminated. The memo obtained by The Post states that some employees will be terminated immediately while others will have to work through their notice period.
        • The author claims that Sports Illustrated's publishing license has been revoked when it hasn't. The company Authentic Brands Group insists that SI will continue to be published and they are in talks with potential licensing partners like Vox, Essence, Penske Media and Junior Bridgeman.
        • The author claims that Sports Illustrated is practically rudderless since its CEO Ross Levinsohn was fired last month when in fact Manoj Bhargava took over as CEO and Jason Frankl of FTI Consulting was appointed as Arena's chief business transformation officer on the day Bhargava stepped down.
      • Fallacies (85%)
        The article contains several fallacies. The author uses an appeal to authority by citing the statements of multiple sources without providing any evidence or context for their claims. Additionally, there are examples of inflammatory rhetoric used throughout the article.
        • Authentic Brands insisted SI will continue
        • The magazine's union members also called on Authentic to 'censure the continued publication of SI'
        • ESPN's Kevin Clark added in a post that Sports Illustrated was what Carson was for a comedian or SNL was for a band
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (0%)
        The authors of the article have a conflict of interest with Sports Illustrated and The Arena Group. They are reporting on layoffs at Sports Illustrated which is owned by Authentic Brands Group, who also owns The Arena Group.
        • [George Mason fan holds up a Sports Illustrated magazine in 2006]
          • https://www.sportsillustrated.com/
            • The Arena Group
            • Author Conflicts Of Interest (0%)
              The author has a financial interest in the topic of layoffs at Sports Illustrated as they are part of Authentic Brands Group which owns The Arena Group and Meredith Corporation.

              71%

              • Unique Points
                • Sports Illustrated kept its magazine on top shelf of media in latter part of 20th century and photography was stuff of museum exhibits but transitioning to digital age has been challenging for SI as it found itself having to play catch-up with online upstarts like Deadspin, Bleacher Report and many others not to mention social media.
                • Ross Levinsohn, the veteran media exec who was CEO of The Arena Group, was ousted in December due to embarrassing revelation that SI had relied on AI-generated contributors who were not actual human writers. Less egregious but still troubling for many longtime readers and media watchers is that website came to rely on a network of poorly compensated freelance contributors instead of stable team of long form specialists.
                • The Arena Group said in an SEC filing this month that they did not make quarterly payment about $3.75 million, prompting outrage and lamentation on social media.
              • Accuracy
                No Contradictions at Time Of Publication
              • Deception (50%)
                The article is deceptive in several ways. Firstly, the title of the article claims that Sports Illustrated's entire staff has been eliminated after Authentic Brands revokes its license to publish. However, this statement is not entirely accurate as some employees will be terminated immediately while others are given a 90-day notice period under the WARN Act. Secondly, the author of the article claims that Sports Illustrated's fabled roster of contributors kept it on top shelf in media for decades. However, this statement is not entirely accurate as Sports Illustrated has faced challenges from online upstarts like Deadspin and Bleacher Report over time due to its reliance on poorly compensated freelance writers instead of the stable of long-form specialists who defined the magazine. Lastly, Authentic Brands claims that it will ensure best in class stewardship for Sports Illustrated's legacy while preserving its traditional ad-supported media pillar. However, this statement is not entirely accurate as there are no details provided on how they plan to achieve these goals.
                • The article states that Sports Illustrated's entire staff has been eliminated after Authentic Brands revokes its license to publish. However, the memo from Arena Group says some workers will be terminated immediately while others are given a 90-day notice period under the WARN Act.
                • The author claims that Sports Illustration's fabled roster of contributors kept it on top shelf in media for decades. However, this statement is not entirely accurate as Sports Illustrated has faced challenges from online upstarts like Deadspin and Bleacher Report over time due to its reliance on poorly compensated freelance writers instead of the stable of long-form specialists who defined the magazine.
              • Fallacies (100%)
                None Found At Time Of Publication
              • Bias (85%)
                The article reports that Authentic Brands Group has revoked Sports Illustrated's license to publish due to a missed payment. The entire staff of the publication was then notified that their jobs were being eliminated. This is an example of monetary bias as it involves financial consequences for the employees and the company.
                • Authentic Brands Group has revoked Sports Illustrated's license to publish due to a missed payment.
                • Site Conflicts Of Interest (100%)
                  None Found At Time Of Publication
                • Author Conflicts Of Interest (0%)
                  The author has a conflict of interest on the topic of Sports Illustrated as they are reporting on Authentic Brands Group's revocation of their license to publish. The article also mentions Time Inc., Meredith Corporation and ESPN which could be potential conflicts.

                  57%

                  • Unique Points
                    • Sports Illustrated might or might not survive as a business
                    • Authentic Brands Group revoked the license of Arena Group to put out the magazine after it missed a multi-million dollar payment
                    • SI had more than 3 million subscribers in its heyday and being on its cover was among sports' greatest honors
                    • Deion Sanders was the most recent Sportsperson of the Year selection that seemed almost intentionally designed to annoy and/or offend traditionalists
                    • The decline of Sports Illustrated never will stop being a shock even in a world where legacy media companies have struggled to make money as much as they used to
                  • Accuracy
                    No Contradictions at Time Of Publication
                  • Deception (50%)
                    The article is deceptive in several ways. Firstly, it presents the decline of Sports Illustrated as a natural occurrence when in fact it was caused by missteps made by Meredith Publishing and Authentic Brands Group. The author also uses emotional manipulation to elicit sympathy for the journalists and employees affected by the layoffs, without providing any context or perspective on why they should be sympathized with. Additionally, the article presents Sports Illustrated as a relic of a bygone era when in fact it has adapted to modern times and is still relevant today.
                    • Sports Illustrated is presented as a relic of a bygone era when in fact it has adapted to modern times and is still relevant today.
                    • The author uses emotional manipulation to elicit sympathy for the journalists and employees affected by the layoffs without providing any context or perspective on why they should be sympathized with.
                    • The decline of Sports Illustrated was not caused by natural occurrences but rather missteps made by Meredith Publishing and Authentic Brands Group.
                  • Fallacies (75%)
                    The article contains several fallacies. The author uses an appeal to authority by stating that Sports Illustrated was once a respected publication and had many subscribers in its heyday. They also use inflammatory rhetoric when they describe the decline of SI as 'shock' and 'difficulty'. Additionally, there is a dichotomous depiction of Deion Sanders being selected as Sportsperson of the Year which seems to be intentionally designed to annoy traditionalists.
                    • Sports Illustrated was once a respected publication
                    • The decline of SI never will stop being a shock
                    • Deion Sanders' selection as Sportsperson of the Year seemed intentionally designed to annoy and/or offend traditionalists.
                  • Bias (80%)
                    The article contains several examples of bias. Firstly, the author uses language that dehumanizes Sports Illustrated by referring to it as a 'late-night infomercial' and saying its decline is a 'shock'. This implies that SI was once something great and has now fallen from grace, which may not be entirely accurate or fair. Secondly, the article contains several examples of religious bias. The author mentions Deion Sanders as an example of someone who offended traditionalists with his selection as Sportsperson of the Year in 2019. This implies that there is a specific group of people (traditionalists) who have certain beliefs and values, which may not be entirely accurate or fair. Thirdly, the article contains several examples of monetary bias. The author mentions that Authentic Brands Group revoked Arena Group's license to put out Sports Illustrated after it missed a multi-million dollar payment. This implies that money is an important factor in the decline of SI and may be influencing other decisions made about the publication.
                    • The article contains several examples of monetary bias. The author mentions that Authentic Brands Group revoked Arena Group's license to put out Sports Illustrated after it missed a multi-million dollar payment.
                      • The article contains several examples of religious bias. The author mentions Deion Sanders as an example of someone who offended traditionalists with his selection as Sportsperson of the Year in 2019
                        • The author uses language that dehumanizes Sports Illustrated by referring to it as a 'late-night infomercial'
                        • Site Conflicts Of Interest (0%)
                          Sports Illustrated has a conflict of interest on the topics of mass layoffs and uncertain future as it is owned by Authentic Brands Group which also owns Arena Group. The $110 million sale price to Authentic in 2019 raises questions about potential conflicts of interest.
                          • Sports Illustrated has been experiencing financial difficulties, including mass layoffs and an uncertain future.
                          • Author Conflicts Of Interest (0%)
                            None Found At Time Of Publication

                          76%

                          • Unique Points
                            • Sports Illustrated is owned by Authentic Brands Group.
                            • The magazine and website will continue under ABG ownership but details on how are not provided.
                            • ABG terminated Arena's license because it did not pay a quarterly fee despite being given notice and an opportunity to cure breach.
                            • Sports Illustrated was caught publishing stories with fake author names and profile photos generated by artificial intelligence in December 2019, leading to Ross Levinsohn being fired as CEO.
                          • Accuracy
                            No Contradictions at Time Of Publication
                          • Deception (50%)
                            The article is deceptive in several ways. Firstly, the author claims that Sports Illustrated has been under 'difficult stewardship' for four years since it was sold to Arena Group. However, this statement is misleading as the magazine and website have had multiple editors and leadership changes during this time period.
                            • The article states that Sports Illustrated has been under difficult stewardship for four years. This is a lie by omission as it fails to mention that the magazine has had multiple editors and leadership changes during this time period.
                          • Fallacies (85%)
                            The article contains several fallacies. The author uses an appeal to authority when stating that Authentic Brands Group (ABG) will ensure the continued publication of Sports Illustrated and preserve its legacy. This statement is not supported by any evidence or information provided in the article.
                            • Bias (85%)
                              The article contains examples of religious bias and monetary bias. The author uses language that depicts one side as extreme or unreasonable by saying 'white supremacists online celebrated the reference to the racist and antisemitic conspiracy.' This is an example of religious bias because it implies that white supremacy is a religion, which it isn't. Additionally, the article mentions Authentic Brands Group (ABG) terminating Arena Group's license for not paying a quarterly fee despite being given notice and an opportunity to cure the breach. This is an example of monetary bias because it implies that ABG cares more about money than people's jobs. The author also uses language that depicts one side as extreme or unreasonable by saying 'verified accounts on X and major far-right influencers on platforms like Telegram were celebrating.' This is an example of religious bias because it implies that the individuals who hold these views are extremists, which they may not be.
                              • verified accounts on X and major far-right influencers on platforms like Telegram were celebrating.
                                • white supremacists online celebrated the reference to the racist and antisemitic conspiracy.
                                • Site Conflicts Of Interest (50%)
                                  The author of the article has a conflict of interest with Sports Illustrated as they are owned by Authentic Brands Group. The publisher is also affiliated with Arena Group and Maven Media Partners which could potentially influence their coverage.
                                  • Author Conflicts Of Interest (100%)
                                    None Found At Time Of Publication