Sports Illustrated considered to be the "bible" of sports journalism has been in steady decline for years, but this past Friday the magazine received its toughest blow yet. The magazine laid off many employees, which was a effect of the publisher Arena Group had their license to operate the publication revoked.
Sports Illustrated has been a titan for a while, but has been on a steady downward spiral for years. In 2017 Meredith purchased Time inc, which included Sports Illustrated, for $3 billion. Two years later, Sports Illustrated alone was sold to Authentic Brands Group for $110 million, the reasoning of the buy was because of the name and image, not so much the magazine. Almost right after the purchase, Arena group struck a 10 year deal with Authentic Brands to run the magazine, paying at least $45 million for the right.
The first round of layoffs came in 2015, when many of the staff members contributing to the illustrated part of Sports Illustrated were let go. The reasoning behind it was the magazine trying to have a stronger digital presence, and trying to attract new users online.
The magazine finally hit rock bottom in August when Manoh Bhargava, the creator behind 5 hour energy, took a massive stake in the group in hopes of rising. Unfortunately this did not happen and the final push came earlier this month when Arena Group failed to make a payment of $3.75 million to Authentic brands, breaching their contract. This led to Authentic Brands sending a terminating letter to Arena Group terminating the license of Sports Illustrated, killing a titan of sports magazines. Arena group were able to immediately pay $45 million to Authentic group, with a third of the workforce being laid off.
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This steady downward spiral is also indicated by their stock price. Arena Group Holdings, Inc (AREN),saw their price decline by 89% over the last 5 years. Its safe to say that (AREN) receiving the termination letter from Authentic Brands was for a contract breach was bound to happen. (AREN) was once valued at $886 a share in the late 90s had reduced to nothing in 2024.
This is a bummer as I always read Sports Illustrated as a kid, but it seems to be a common trend. With artificial intelligence, journalism is becoming a lost art. Especially non partisan journalism. I wonder if this trend will continue with other magazines and publishers as it gets harder everyday to tell if a human or robot wrote it.
It's really sad to witness this massive sports journalism title fall. The mass layoffs, coupled with the history of ownership changes and strategic shifts, really highlight the challenges traditional print media companies faces in the digital age. The story of Sports Illustrated should serve as a warning for the rest of the industry that they may need to change their structure to adapt to new consumer preferences.
I feel as though there are many angles this issue can be looked at from. As mentioned above, as a society we are moving toward more digital platforms. In general, print media is dying and thus are the jobs and income that come with it. Many magazines and publications are ceasing to exist. Additionally, there has been a social change in attitudes toward objectification of women. Being featured on the cover of SI was once the height of a model's career, but today it is viewed as a cash grab by models and others. Additionally, women found they were only being represented when wearing a bikini.
I agree with Rachel that this story represents a societal shift in media preferences. Print magazines are starting to fade away with the dominance of digital media especially in sports journalism. I remember when being on the cover of Sports Illustrated used to be one of the greatest accomplishments as an athlete. It signified that an athlete was truly a global star.
The decline of Sports Illustrated is not just a result of financial losses, but also reflects broader changes in media. A combination of challenges facing traditional print media in adapting to the digital age, in addition to ownership changes and strategic shifts, helped lead to this outcome. This shows that even big titles need to change in order to stay relevant and avoid becoming casualties of an ever-changing media landscape.
This is very disappointing. I grew up reading Sports Illustrated and to see it fall is upsetting. As the internet and social media has grown so rapidly, magazines and newspapers are becoming irrelevant as time goes on. Hopefully other magazines and companies adapt to current media.
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