Sports Illustrated brand gets sold for US$100m

Meredith Corporation has sold Sports Illustrated to Authentic Brands Group (ABG), a global brand development, marketing and entertainment company, for US$110 million. Following the acquisition, ABG will assume the marketing, business development and licensing functions for the Sports Illustrated intellectual property and brands, which include Sports Illustrated, Sports Illustrated Kids, Sportsperson of the Year, Sports Illustrated Swimsuit, SI and SI TV.The print magazine and SI.com will maintain editorial independence and continue to operate under the leadership of Meredith and editor-in-chief Chris Stone and publisher Danny Lee. ABG also acquires the rights to over two million iconic images as part of Sports Illustrated‘s archive of owned photography. The transaction does not include the FanSided digital platform, which Meredith is currently in the process of selling. FanSided was acquired in 2015 by TIME to boost Sports Illustrated‘s digital footprint.Meanwhile, Meredith will pay ABG a licensing fee to operate the Sports Illustrated print magazine and SI.com for a minimum of two years.As part of the acquisition, both companies have formed a strategic partnership to build a global media platform that encompasses print, digital, mobile, video, social and broadcast television. ABG and Meredith will combine their respective strengths to create other strategic, media-driven opportunities for complimentary ABG-owned brands. ABG will develop broad-based licensing programs under the Sports Illustrated brand spanning product, original content and live events.In the meantime, ABG also sees a “significant opportunity” to leverage Sports Illustrated‘s trusted name and digital infrastructure to position the brand as a leader in eSports and sports gambling. Sports Illustrated joins a list of iconic brands under ABG including Juicy Couture, Nine West, CeCe, Volcom and Jones New York.Meredith acquired Sports Illustrated as part of its purchase of Time Inc. on 31 January 2018, and shortly after announced it was selling certain  news and sports brands under Time Inc. For its 2019 financial year, Meredith generated approximately US$450 million of proceeds  from the sale of the TIME, FORTUNE and Sports Illustrated brands.Shortly thereafter, Meredith announced it was selling certain Time Inc. news and sports brands. In its Fiscal 2019, Meredith has generated approximately $450 million of proceeds from the sale of the TIME, FORTUNE and Sports Illustrated brands. This figure is in addition to the nearly $300 million Meredith generated from the sale of Time Inc. assets in its Fiscal 2018.Meredith said in a press statement that it is using the transaction proceeds to pay down debt. With the sale of Sports Illustrated, Meredith will have paid approximately $900 million of debt by 30 June 2019. Meredith intends to pay another US$100 million in debt in the first quarter of its fiscal 2020 ending 30 September 2019, after completing the sale of FanSided and Viant to reach its stated goal of US$1 billion of debt pay down.Jamie Salter, founder, chairman and CEO of ABG said: “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. SI‘s trusted name and fiercely devoted following set the stage for the brand to become a leader in lifestyle and entertainment.”Meanwhile, Jon Werther, president, Meredith National Media Group said it is “delighted” to find a great home for Sports Illustrated with ABG.” Meredith is also excited about the opportunity to fully integrate Sports Illustrated‘s print and digital products into Meredith’s operations.“We believe our proven expertise in content creation and sales and marketing will greatly enhance the vitality and profitability of these channels,” Werther said.