Is This the End of Sports Illustrated?

Is this the end of Sports Illustrated?…🏈

Never far from the headlines, Sports Illustrated’s start to 2024 has been far from smooth sailing with its publisher, The Arena Group, failing to pay the magazine’s owner (Authentic Brands Group) a $3.75 million (USD) quarterly licensing fee payable under the parties licensing agreement.

The commerical fallout for Sports Illustrated is significant. Firstly, following the issue (and lapse) of a breach notice, Authentic Brands Group exercised its termination rights over the licensing agreement, and has subsequently started recovery efforts against The Arena Group for $45 million (USD) payable upon termination.

Secondly, and the byproduct of the licensing agreement termination, was the significant downsizing of Sports Illustrated’s workforce. Without a publisher and without employees, it remains to be seen what the remainder of 2024 (and beyond) holds for Sports Illustrated.

Events such as these provide timely reminders not only on the need to take immediate steps when in receipt of a breach notice, but also as to the need to consider the broader commerical impacts transaction documents may have on subsidiaries operations.

My personal favourite cover below - extracted from my beloved Arizona Cardinals Football Club feat. Larry Fitzgerald Jr.