• by Ray Schultz , April 1, 2024

The ongoing Sports Illustrated struggle entered a new phase on Monday when owner Authentic Brands Group filed a roughly $50 million lawsuit against former licensee The Arena Group.

Among other things, it alleges that Manoj Bhargava, majority owner of The Arena Group, acted “more like a gangster” than a trusted business partner. 

Bhargava, the founder of 5-hour Energy “opted for lawlessness” in his effort to hang on to the title, the suit charges. 

The suit seeks a $45 million termination fee.

The Arena Group laid off almost the entire staff of SI after its license to produce the magazine was suspended when it missed a $3.75 million payment.

The complaint accuses The Arena Group of breach of contract and trademark infringement.  

Authentic Brands awarded the SI license to Minute Media last month.  

Bhargava has not commented on the suit, according to media reports.  

The case is on file with the U.S. District Court for the Southern District of New York.