Genuine Manufacturers Group is getting a serious payout for severing ties to a licensing settlement for Sports activities Illustrated, simply not the one you suppose.
888 Holdings, the United Kingdom-based operator of SI Sportsbook, has ended its license with Genuine Manufacturers Group for using the Sports activities Illustrated title. According to Sportico’s Jacob Feldman, the breakup was described as “mutual” and has resulted in a $50 million termination payout for Genuine between now and 2029.
“In the U.S., the intensity of competition and requirement for scale means huge investment is required to reach profitability,” Widerström stated in a press release. “A series of record-breaking months for SI Casino has underscored the strength of the SI brand. However, despite these successes, we have concluded that achieving sufficient scale in the U.S. market to generate positive returns within an accelerated time frame is unlikely.”
At the time of the agreement in 2021, Sportico reported the connection included “an upfront licensing fee paid to SI owner Authentic Brands Group, additional payments based on performance metrics, and an equity offering,” in addition to “a 4.9% stake in 888’s consumer-facing U.S. business with options to buy up to nearly 20% at future dates.” The unique deal was set to run for as much as 20 years.
SI Sportsbook had filings in three states – Colorado, Virginia, and Michigan – and every of these is anticipated to shut within the subsequent six to 18 months.
According to Sportico, Genuine is anticipated to embrace a “Gambling 2.0” technique, distributing Sports activities Illustrated content material non-exclusively to sportsbook operators.
