The Arena Group Faces Legal Action for Alleged Union-Busting and Unlawful Layoffs at Sports Illustrated

Introduction

The Arena Group, the operator of the venerable sports publication Sports Illustrated and its allied assets, announced substantial layoffs affecting over 100 employees on January 19, 2024. This choice emanates from the company’s dire fiscal circumstances, including notable debts and delinquent payments. Consequently, The Arena Group has commenced a restructuring process to transition to a “streamlined business model.” However, this action has ignited legal challenges from two prominent union organizations, The NewsGuild of New York and the Sports Illustrated Union, who assert that the company employed unfair labor practices during the dismissals.

Specific Allegations and Legal Actions

The union organizations have lodged a lawsuit against The Arena Group, accusing the company of ending employment contracts “because of their union activity.” According to the unions, every Sports Illustrated Union member learned of their imminent termination, while supervisors and managers remained employed. Additionally, the unions argue that while most employees received the mandatory 90-day notice of termination under New York State law, some were summarily laid off without any notice. In response to these allegations, The NewsGuild of New York has filed an unfair labor practice charge against The Arena Group with the National Labor Relations Board (NLRB).

Statement from The NewsGuild of New York

Susan DeCarava, president of The NewsGuild of New York, articulated her concerns regarding the situation in a statement. She maintained that The Arena Group’s ownership was exploiting a manufactured dispute concerning the Sports Illustrated license as a pretext to dismantle the union and unlawfully target its members. She emphasized that filing the unfair labor practice charge with the NLRB was merely the initial step, and the union would pursue all available avenues to protect its membership.

Departure of Former CEO Ross Levinsohn

Ross Levinsohn, the former CEO of The Arena Group, resigned from the board of directors on the day of the mass layoffs. He cited the “union-busting tactics” and the obliteration of the publication as the primary reasons for his departure. Levinsohn’s resignation underlines the depth of the internal turmoil within The Arena Group and amplifies the unions’ claims of unfair labor practices.

The Arena Group’s Response

When contacted by USA TODAY Sports for comment, The Arena Group declined to furnish any statements. This absence of response raises further questions about the company’s motives and its commitment to fair labor practices.

Continued Efforts to Publish Sports Illustrated

Despite the layoffs and legal challenges, the Sports Illustrated Union has vowed to continue fighting for the continued publication of the magazine. Stories continue to grace its website, demonstrating the union’s unwavering dedication to preserving the storied legacy of Sports Illustrated.

Historical Context and Recent Struggles

In recent years, Sports Illustrated has confronted numerous challenges, including a 30% staff reduction in 2019. Additionally, in November 2023, it was discovered that the website had published AI-generated articles, some containing fictitious names and biographies. These incidents further underscore the publication’s struggles in upholding its traditional journalistic standards and adapting to the ever-evolving digital landscape.

Background Information on Sports Illustrated

Sports Illustrated, initially published on August 16, 1954, was a weekly publication until 2018 when Meredith Corporation acquired the magazine alongside other Time Inc. assets. Since 2020, it has adopted a monthly publishing schedule. Over the years, Sports Illustrated has established itself as a leading sports publication, renowned for its in-depth coverage, iconic photography, and thought-provoking commentary.

Conclusion

The legal action initiated by The NewsGuild of New York and the Sports Illustrated Union against The Arena Group underscores the imperative to safeguard workers’ rights and adhere to fair labor practices. The unions’ allegations of union-busting and unlawful layoffs raise serious doubts about the company’s conduct and its commitment to ethical business practices. As the legal proceedings unfold, the outcome of this case will have far-reaching implications for the future of Sports Illustrated and the broader media landscape.