By SCOTT MCKIE B.P.
One Feather Asst. Editor
The Arena Group, operator and publisher of Sports Illustrated magazine, announced layoffs of over 100 employees on Thursday, Jan. 18, 2024. Officials of the Eastern Band of Cherokee Indians (EBCI) assure that this news will not negatively affect the Tribe as Kituwah, LLC, a tribal entity, is a lead investor in the Sports Illustrated Resorts.
Kituwah, LLC, an entity of the Eastern Band of Cherokee Indians (EBCI) is involved in the development of a Sports Illustrated Resort in Tuscaloosa, Ala. – home of the University of Alabama. The Arena Group, operator and publisher of Sports Illustrated magazine, announced layoffs of over 100 employees on Thursday, Jan. 18, 2024, and EBCI officials state it will not affect the Kituwah, LLC’s investment in Sports Illustrated Resorts. (Renderings courtesy of Travel + Leisure)
The Arena Group said in its statement, “The Company, which has substantial debt and recently missed payments, is completing these cost-cutting measures to initiate a transformative shift towards a streamlined business model.”
Kituwah, LLC issued the following statement on Friday, Jan. 19, 2024, “As many of you have seen, Authentic Brands Group announced today they are revoking the Sports Illustrated Publishing License from the Arena Group. Kituwah LLC and the EBCI are part of the ownership team that owns and manages the Sports Illustrated Resorts Hospitality License, a separate company and license from the long-time published Sports Illustrated magazines that were being managed by The Arena Group.”
It continued, “Kituwah LLC and the Eastern Band of Cherokee Indians do not have any exposure or investment in the Publishing License and are not at risk financially as the matter is handled. Authentic Brands Group ‘fully stands behind the Sports Illustrated brand and Sports Illustrated Resorts vertical and can assure you that the future of both and all their associated channels are stronger than ever’.”
Principal Chief Michell Hicks said in a statement on Saturday, Jan. 20, 2024, “We have received numerous questions from concerned community members about the recent news regarding Sports Illustrated magazine. The Tribal Council, Vice Chief, and I have met with the Kituwah, LLC and want to offer reassurance that this recent development will have no impact on our Tribe. The Kituwah, LLC and the EBCI are part of the ownership that owns and manages the Sports Illustrated Resorts Hospitality License, a separate company and license from the long-time published Sports Illustrated magazine.”
He went on to state, “We are confident of the new opportunities that the Sports Illustrated Resorts will offer for our Tribe and look forward to continued success in the future.”
Authentic Brands Group said in a statement on Jan. 19, 2024, “Yesterday, the Arena Group’s license to serve as the publisher of Sports Illustrated was terminated as a result of the company’s failure to pay its quarterly license fee despite being given a Notice of Breach and an opportunity to cure the breach. Authentic is here to ensure that the brand of Sports Illustrated, which includes its editorial arm, continues to thrive as it has for the past nearly 70 years. We are confident that going forward the brand will continue to evolve and grow in a way that serves sports news readers, sports fans, and consumers.”
It continued, “We are committed to ensuring that the traditional ad-supported Sports Illustrated media pillar has best in class stewardship to preserve the complete integrity of the brand’s legacy.”
The Sports Illustrated Union and the NewsGuild of New York issued a statement on Jan. 19, 2024, “This is another difficult day in what has been a difficult four years for Sports Illustrated under Arena Group (previously the Maven) stewardship. We are calling on Authentic Brands Group to ensure the continued publication of SI and allow it to serve our audience in the way it has for nearly 70 years.”
The One Feather reported in February 2023 that Kituwah, LLC will be investing $316 million and become part owners and operators of Sports Illustrated Resorts, a business venture separate from the magazine.
Kituwah, LLC will invest $75 million per year for the next four years, with each of those installments going toward an individual new resort that will be built from the ground up. They also invested $7 million in initial equity, giving them 37.4 percent in effective equity partnership and making Kituwah, LLC the largest equity holder in SI Resorts.
In September 2023, Kituwah, LLC announced it is involved in the development of a Sports Illustrated Resort in Tuscaloosa, Ala. – home of the University of Alabama. With an opening in late 2025, the Resort will be the first of several planned for college towns and is being developed by Travel + Leisure Co. and Sports Hospitality Ventures, LLC.
At the time, Chris McCoy, president of Kituwah Global Marketing and Brand Management, told the One Feather, “This will be the biggest thing for the next decade in hospitality.”
He added, “Our partnerships are exploring the possibility of hospitality development at a number of college campuses nationwide. We have a lot of interest from universities. We have a lot of interest from outside parties, and continued growth of various industry partnerships.”
