The American sports magazine Sports Illustrated will lay off a large part of its staff, according to the union. The licence agreement for the famous periodical will end due to unpaid payments.
Failure to pay
The magazine’s publisher, Arena Group, announced earlier this month that it had failed to pay USD 3.75 million to Authentic Brands Group. That’s the owner of the paper from which it has a license.
The move prompted Authentic Brands Group to terminate a contract the companies signed in June 2019. Under that agreement, Arena Group had the exclusive right and license to operate Sports Illustrated magazine, including its digital and print editions, in the United States, Canada and Mexico, among other countries.
Unclear future
Employees have been warned that they can expect mass layoffs and that the future of the famous title is unclear. The paper’s owner has said that the brand, including its editorial arm, will live on. The publisher, Arena Group, said that negotiations for the licence were continuing.
The magazine began publication in 1954. It became the first American magazine to sell more than a million copies a week, a number that climbed to 3.5 million by the early 1990s. Outside the world of sports, it is known for its famous annual Swimsuit Issue, which features models and professional athletes in swimsuits.
Source Czech Press Office
