HomeAmericasCommunity$48 Million: 5-Hour Energy Drink’s Manoj Bhargava Sued By Sports Illustrated Owners

$48 Million: 5-Hour Energy Drink’s Manoj Bhargava Sued By Sports Illustrated Owners


$48 Million: 5-Hour Energy Drink’s Manoj Bhargava Sued By Sports Illustrated Owners

India-West News Desk

NEW YORK, NY – In a recent turn of events, the owner of Sports Illustrated has taken legal action against the magazine’s former publisher, alleging a breach of contract worth a staggering $48 million. According to the New York Post, the lawsuit filed by Authentic Brands Group accuses the former publisher of halting payments as a ploy to renegotiate licensing terms.

At the heart of the dispute is Manoj Bhargava, the founder of 5-Hour Energy drink and Arena’s largest shareholder. The lawsuit portrays Bhargava as having adopted a confrontational approach, with Authentic Brands Group alleging that he acted more like a “gangster” than a reliable business partner.

The lawsuit claims that Bhargava reneged on a significant quarterly license fee payment to Authentic Brands, prompting threats to sabotage Sports Illustrated and hold it hostage. This allegedly led Authentic Brands to demand a $45 million termination fee from Bhargava’s company, NY Post reported.

Despite the turmoil, Authentic Brands managed to sell the licensing rights to Minute Media, known for its ownership of the Derek Jeter-founded Players’ Tribune. However, Bhargava’s alleged obstinance continued, with Authentic Brands accusing him of attempting to force unreasonable demands.

Jamie Salter, CEO of Authentic Brands, reportedly rebuffed Bhargava’s attempts to negotiate a lower licensing fee, as per reports in the Washington Post.

In response to the lawsuit, Bhargava’s Arena Group is accused of unlawfully retaining Sports Illustrated-related assets and trademarks, despite no longer holding the license.

Minute Media has expressed its commitment to maintaining Sports Illustrated’s print edition and expanding its global reach.

The tumultuous journey of Sports Illustrated, once a weekly publication, has seen numerous challenges under various ownerships. From AI-generated stories controversies to changes in publishing frequency, the magazine’s legacy continues to evolve amidst legal disputes and industry transformations.

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  • It is always the dispute some the Indian businessman.

    April 2, 2024
  • Will be interesting to see what happens.

    April 2, 2024

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