Authentic, the licensing group that purchased Sports Illustrated for $110 million from Meredith five years ago, has terminated the agreement it holds with The Arena Group to publish SI in print and digital, according to an email obtained by Front Office Sports. That move comes three weeks after Arena missed a $2.8 million payment that breached the company’s SI licensing deal, which began in 2019.

The fallout: On Friday Arena told all SI employees in an email “… We were notified by Authentic Brands Group (ABG) that the license under which the Arena Group operates the Sports Illustrated (SI) brand and SI related properties has been officially revoked by ABG. As a result of this license revocation, we will be laying off staff that work on the SI brand.”

“Some employees will be terminated immediately, and paid in lieu of the applicable notice period under the [the union contract]. Employees with a last working day of today will be contacted by the People team soon. Other employees will be expected to work through the end of the notice period, and will receive additional information shortly.” (An Arena spokesperson did not immediately respond to FOS when contacted about the layoff plans.)

[This doesn’t mean SI is dead. Arena likely wants to renegotiate the deal with Authentic, which announced its intention to keep SI going with someone, whether or not Arena is their partner. It’ll be tough to do that without any employees, though, so Authentic had better come up with a solution fast. — Ed]