The Sports Illustrated publisher whose license was revoked last month has made a pitch to revive the long-lasting brand whilst he continues to gut its magazine — and his plan includes the creation of an SI-branded TV channel, The Post has learned.
Arena Group, led by Five-Hour Energy founder Manoj Bhargava, would cough up a bit greater than the $15 million a yr in licensing fees it had balked at paying Authentic Brand Group’s Jamie Salter to drag off the bizarre pivot, two sources near the situation told The Post.
Arena sparked an uproar after announcing it’ll fire most of SI’s unionized staff — including the few remaining high-profile writers — after failing to make a $3.5 million quarterly payment to ABG. It gave the staff a compulsory 90-day notice of the mass layoffs and continues to update the SI website.
Manoj Bhargava bought Arena partly so he could turn SI right into a TV channel, sources said. Str/EPA/Shutterstock
But Arena also owns Bridge Media Networks, which incorporates a 24/7 network called Sports News Highlights, a low-budget, mostly digital channel that plays a 30-minute loop in midsize and a number of major markets like Detroit and Los Angeles.
SNH currently plays on SI’s website, but Bhargava desires to rebrand the channel as SITV and hire on-air talent to enhance the broadcasts, sources said. The goal could be to seek out a house for SITV with cable operators as major sports networks like ESPN move toward a standalone app model, the insider added.
Salter has also been in talks about licensing the rights to Minute Media, owner of the Derek Jeter-founded blog Player’s Tribune — which is offering less money but would more likely maintain the 70-year-old magazine’s traditional model and plenty of of its writers, a source conversant in the negotiations said.
Salter is predicted to make a call inside the subsequent few weeks, the source added.
Arena Group declined comment, as did Authentic Brands and Minute Media.
There may be plenty off bad blood between Barghava and Salter after Arena reneged on the licensing fee. Authentic is owed $45 million on the present contract.
When Bhargava demanded a lower licensing fee, “I told him to f–k off,” Salter had told the Washington Post.
Salter is deciding whether to trust Bhargava to run an SI sports channel. David McGlynn
The feuding moguls have been going round for round since. Bhargava even admitted an illustration by The Post of the 2 in a boxing ring hit near the mark during an interview with Arena-owned TheStreet this month.
“We went at one another for just a little bit,” he said. “I’d say a few of that boxing stuff may need been just a little accurate.”
Bhargava called Salter a “tough old guy,” but predicted he would accept Arena’s offer.
“The contract shall be for various things,” Bhargava said within the Feb. 16 interview. “Jamie goes to return out higher than he was but nonetheless so will we.”
Bhargava hinted that he would retain a few of the 82 unionized employees which can be about to lose their jobs but that there isn’t enough money to maintain marquee writers like Tom Verducci, Jon Wertheim, Chris Mannix, Greg Bishop and Pat Forde.
The Sports Illustrated swimsuit issue gets lots of attention but is just not a significant SI revenue generator, sources said. Getty Images for Sports Illustrated Swimsuit
“We checked out a special path and we checked out the fee structure. We just couldn’t afford these great journalists,” Bhargava told TheStreet.
“Those days when individuals are paying for those [great articles] should not here anymore.”
SI union reps, nevertheless, fear for the long run of the publication if Salter accepts Arena’s plans.
“It’s time for ABG to prove that it’s occupied with greater than simply milking Sports Illustrated’s name for profit,” the union said.
Bhargava will likely fire baseball author Tom Verducci if he becomes SI’s publisher. Getty Images
“It must ensure a future for SI that respects not only the history of the institution but the employees who make the brand’s success possible.”
In in its heyday, SI had a circulation of three million per week, but has been reduced to 12 issues a yr — for an annual fee of $20. There are also about seven annual special issues.
Illustration by The Post showed Manoj Barghava (left) and Jamie Salter (right) fighting over a recent licensing agreement.
Arena doesn’t break out what number of print subscribers remain.
Arena made a small take advantage of SI’s print and digital versions and the brand generates greater than $100 million in annual revenue, sources said.
On Feb. 14, Bhargava invested an extra $12 million in Arena to provide his firm a 54.5% stake.
