Authentic Brands Group Exec VP & Business Unit Manager Marc Rosen said that Sports Illustrated is "profitable" and its EBITDA earnings have "more than doubled since the May 2019 acquisition, which is on pace with the company’s forecasts," according to Kayleigh Barber of DIGIDAY. When SI was purchased by ABG from Meredith for $110M, the publication had been "losing millions of dollars in ad revenue in the previous couple of years." Rosen said that the current growth is "thanks in large part" to the 15 active licensing deals for Sports Illustrated that ABG "signed in just over a year." He added that SI is "expected to close three to five additional deals" in Q4. Barber notes part of the strategy for licensing is "finding partners who can do the job better than can be done in-house." ABG in August was ranked as the third largest licensor of '20, selling $12.3B in branded products. Licensing deals coming at the end of the year "include a new ticket sales business for secondary sporting events" (like meet and greets). Online betting is the "new frontier where Rosen said he sees 'a lot of upside.'" Arguably the "most important deal" is with Maven, which "paid ABG $45 million upfront in June 2019 for the right to SI’s editorial operations." A source familiar with Maven said that "approximately 60% the revenue earned from SI’s editorial operations comes from subscriptions," with 40% from advertising (DIGIDAY.com, 10/1).
