The digital media company The Arena Group (TAG) settled its lawsuit against the licensing firm Authentic Brands Group (ABG) in late April, quietly ending what had previously been a highly visible and contentious $249 million legal contest concerning the fate of Sports Illustrated.
The confidential agreement was settled out of court, and its financial terms were not disclosed. It is unclear which party—if either—paid a fee.
In a public filing, TAG said the size of the payment was “not material.” According to Gary Kibel, a partner at the law firm Davis+Gilbert LLP, that means it is small enough that it is unlikely to affect the stock price of a company.
As a result of the settlement, TAG was able to remove around $94 million in potential liabilities from its balance sheet, a figure that reflects the projected amount of cumulative financial damages TAG anticipated would stem from the lawsuit.
A game of ‘billionaire chicken’
The discretion of the settlement marks a departure from the dramatic gamesmanship that defined the public legal battle.
The key decision makers at both companies—TAG’s Manoj Bhargava and ABG’s Jamie Salter—are both aggressive dealmakers whose agressive tactics have often led to litigation. One Arena Group employee called the face-off a game of “billionaire chicken.”
ABG did not respond to a request for comment. TAG declined to comment.
The fight over Sports Illustrated
The legal dustup began in late 2023 when Bhargava, the billionaire founder of 5-Hour Energy, acquired a majority ownership stake in TAG, a digital media company whose portfolio included Sports Illustrated, along with other titles like Parade, TheStreet, and Men’s Journal.
In January 2024, TAG failed to pay the $3.75 million quarterly licensing fee owed to ABG, which owned the licensing rights to Sports Illustrated. In March 2024, ABG transferred the license to Minute Media, a publishing firm whose portfolio includes the Players’ Tribune.
