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Some risks as ‘Sports Illustrated’ expands its focus
NEW YORK, May 29, 2019 (BSS/AFP) – For decades, “Sports Illustrated” has
played a unique role in chronicling major competitions like the Olympics and
the highs and lows of athletic icons from Muhammad Ali to Serena Williams.
But the fortunes of the 65-year-old magazine — known also for its annual
swimsuit issue — will now be tied to a sale of the Sports Illustrated name
that envisions re-fashioning the enterprise into a “leader in lifestyle and
entertainment,” as its new owner put it.
Under a transaction unveiled Monday, SI owner Meredith Corporation sold
the brand’s intellectual property to Authentic Brands Group for $110 million.
The deal grants ABG access to more than two million images owned by the
magazine and website, as well as the “Sports Illustrated” brand for purposes
such as events and conferences, video production and sports gambling, the
companies said in news releases.
Editorial control for the magazine and website will rest with Meredith for
“at least two years,” with Merdith paying ABG an undisclosed licensing fee,
according to a Meredith news release.
“As one of the most iconic brands in sports media, SI is a cultural
centerpiece with massive opportunities for growth across its burgeoning
digital, TV and social platforms and industry-leading print magazine,” said
Jamie Salter, founder and chief executive of ABG.
“SI’s trusted name and fiercely devoted following set the stage for the
brand to become a leader in lifestyle and entertainment.”
– Tough business –
The deal comes as magazines, as with newspapers, contend with diminishing
readerships and advertising funds as more marketers commit dollars to online
platforms.
Such challenges have buffeted weekly publications such as Time, Fortune
and Sports Illustrated, which were all sold to Meredith by Time in 2018.
Sports Illustrated has long enjoyed unique cache in providing thoroughly
reported and sharply-written accounts of just-completed games, as well as
legacy-defining profiles of Michael Jordan, Tiger Woods and other stars. SI
is also known for its sweeping narratives surrounding infamous figures such
as Pete Rose, Mike Tyson and Tonya Harding.
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With the ABG deal, Sports Illustrated sees a parallel to the strategy
taken by publications such as the New York Times and Wall Street Journal,
which have turned to conferences, travel seminars and podcasts as a means to
raise funds for journalism.
“We are now perfectly positioned, with the support and resources of ABG,
to thrive in many other spaces: events and conferences, licensing, gambling
and gaming, IP development, especially in video and TV, to name a few, all
while continuing to benefit from Meredith’s industry-leading track record in
operating media companies,” said SI Editor-in-Chief Chris Stone.
Stone said the development of “independent, award-winning journalism and
storytelling” remains the “heart of SI.”
– Gambling on gambling? –
However, some in sports journalism expressed concern about the future of
the publication.
“Really hope my colleagues get to keep doing the in-depth, high-end work
that they do so well. So much talent and tradition at SI,” said New York
Times tennis writer Christopher Clarey on Twitter.
The announcement’s mention of gambling also raised concerns for Kelly
O’Keefe, a professor of brand management at Virginia Commonwealth University.
O’Keefe said monetizing the SI brand through quality sports programming
was a logical extension for the company and could find a market with a
company like Netflix that might want sports programming but has little direct
expertise.
But O’Keefe said SI’s interest in sports gambling was “worrisome” and
potentially detrimental to the brand’s long-time value.
Seven US states have legalized sports gaming since a monumental US Supreme
Court decision a year ago, but the venture remains controversial in many
circles. Companies such as Disney have kept their distance.
“The brand is reasonably untarnished,” O’Keefe said. “There are many ways
to put meat onto this brand without stepping into something so problematic.”
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