• Loading stock data...
Tuesday, October 28, 2025
Want a chance to win $250 and free FOS gear? Take our quick reader survey. Take the survey here

Lawsuit Alleges ‘Fraudulent Coup’ at Former ‘Sports Illustrated’ Publisher

  • The former CEO of The Arena Group was accused of having ‘intentionally mismanaged Arena’ in a lawsuit filed in Delaware.
  • The suit adds to the legal chaos surrounding the former publisher of ‘SI.’
Akron Beacon Journal-USA TODAY NETWORK

Another chapter in the tumultuous history of the media company that, until last month, published Sports Illustrated was detailed in a lawsuit filed in Delaware last week. 

The plaintiffs are James Heckman and William Sornsin, cofounders of The Arena Group, which until January published SI under a license from Authentic Brands Group. They allege that Ross Levinsohn, who was ousted as Arena CEO late last year, “enacted a fraudulent coup” to seize control of Arena in the summer of 2020, a year after Arena (then known as Maven) entered into a 10-year, $150 million deal licensing deal with Authentic. 

“Once Levinsohn took control of Arena, he intentionally mismanaged Arena and destroyed its value to set up a change-of-control transaction to enrich himself,” the complaint states. “In so doing, Levinsohn violated his fiduciary duties and acted in bad faith by prioritizing his self-interest above the Company’s.”

The complaint, filed in Delaware’s Court of Chancery on April 3, lists Levinsohn and Arena as defendants and seeks more than $10 million in damages. Beyond Heckman and Sornsin, the plaintiffs include investors Mark Strome and David Bailey. Law360 was the first outlet to report the lawsuit. 

Levinsohn declined to comment on the suit.

The lawsuit was filed days after Levinsohn sued Arena in a California court over his ouster as CEO in December, which followed 5-Hour Energy founder Manoj Bhargava taking effective control of the media company. Levinsohn, who later resigned from Arena’s board, argued he was forced out as Arena’s top executive illegally by Bhargava after Levinsohn “attempted to thwart Bhargava’s illegal misconduct, overt self-dealing, and systematic destruction of shareholder value.”

Authentic—which purchased SI for $110 million in May 2019—terminated Arena’s license to publish SI earlier this year and tapped Minute Media as SI’s new publisher last month. 

Many of the allegations in the present case deal with Heckman’s removal as CEO in August 2020, which would be beyond Delaware’s typical three-year statute of limitation period for such claims. 

“We believe the continuing course of conduct extends the statute of limitation until the conclusion of the scheme,” Ryan Downton, one of the lawyers representing the plaintiffs, said in an email to Front Office Sports. “There are also various settlements the company entered into [and subsequently breached] along the way that extended limitations.”

Arena declined comment. 

The lawsuit doesn’t mention that upheaval at SI over the first year of its publishing deal led Authentic to threaten Arena with potentially voiding the contract weeks before Heckman was dismissed, according to two sources with knowledge of that notice. 

Soon after Arena became SI’s publisher, the company instituted layoffs and cut back SI’s print schedule from bimonthly to monthly. That included very public fallout after Grant Wahl, one of SI’s marquee writers, wrote on the site now known as X that he was fired with “no severance” in April 2020 as the impacts of the COVID-19 pandemic led to a lengthy shutdown of most sports leagues.

“This person made more than $350,000 last year to infrequently write stories that generated little meaningful viewership or revenue,” Heckman wrote in an email to Arena employees the same day Wahl went public with his departure. 

Beyond the Delaware lawsuit and the one filed by Levinsohn, Authentic and former Arena exec Andrew Kraft have each sued Arena and Bhargava this month.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Brian Kelly

CFB Firings Tracker: LSU Owes Brian Kelly $53 Million

The sum owed Kelly slightly tops James Franklin’s at Penn State. 
May 20, 2023; Los Angeles, California, USA; Los Angeles Dodgers and LA Sparks co-owner Todd Boehly watches during game three of the Western Conference Finals for the 2023 NBA playoffs between the Los Angeles Lakers and the Denver Nuggets at Crypto.com Arena.
exclusive

Mark Walter’s Lakers Buy Includes Dodgers Co-Owner Todd Boehly

Jeanie Buss will retain a roughly 15% stake and remain team governor.

$100M Browns Stadium Settlement Still Faces Cleveland City Hurdles

Cleveland’s city council must still approve the pact with the Browns.

Lamar Jackson’s Practice Status Flip Sparks NFL Investigation

Baltimore could be disciplined for not properly disclosing Lamar Jackson’s status.

Featured Today

September 21, 2025; Santa Clara, California, USA; NFL commissioner Roger Goodell before the game between the San Francisco 49ers and the Arizona Cardinals at Levi's Stadium

NFL Fall Meeting: 7 Big Topics Among Team Owners 

Media, facilities, and labor highlight some of the key areas of concern.
Ohio State Buckeyes running back Isaiah West (32) runs the ball in the second half at Camp Randall Stadium on Saturday, Oct. 18, 2025 in Madison, Wisconsin
October 25, 2025

NIL Has Birthed a Third-Party Cottage Industry—and It’s a Mess

There’s no limit to how much players can make from NIL deals.
Christie's
October 21, 2025

Lou Gehrig’s $4M Jersey and the Exploding Sports Memorabilia Market

An ultra-rare sports collection is about to hit the auction block.
@chef__tezz/Instagram
October 19, 2025

Inside the NFL’s Private Chef Network

Private chefs are the unsung architects of player performance.
YouTube/ Multiple streaming services appear on a Roku TV.

YouTube in Another Carriage Dispute, This Time With Disney

ESPN and ABC could be dropped from the No. 4 U.S. pay-TV distributor.
May 17, 2025; Bronx, New York, USA; New York Yankees left fielder Jasson Dominguez (24) shakes hands with New York Mets right fielder Juan Soto (22) after the top of the fifth inning at Yankee Stadium.
October 23, 2025

Mets, Yankees, and the Nielsen Debate That Won’t Go Away

Weeks after the end of the MLB regular season, viewership issues remain.
Oct 21, 2025; Oklahoma City, Oklahoma, USA; Oklahoma City Thunder guard Shai Gilgeous-Alexander (2) keeps the ball away from Houston Rockets forward Kevin Durant (7) during the second half at Paycom Center
October 23, 2025

NBA’s NBC Return Draws 5.9M Viewers, Best Opener Since 2010

Thunder vs. Rockets peaked at 7.1 million viewers.
Sponsored

How HOKA is Reimagining the NIL Relationship

Fans can now follow their favorite golfers and experience every marquee moment at the Ryder Cup — thanks to innovation from T-Mobile.
Brian Windhorst
October 23, 2025

Brian Windhorst Details Emergency Landing on Omaha–L.A. Flight

The pilots and flight attendants had a communication issue.
October 22, 2025

YouTube Stars Help Bring Back Golf Channel’s ‘Big Break’

The show will return in 2026 after an 11-year hiatus.
Candace Parker
October 22, 2025

Candace Parker Wants NFL-Style Coverage From NBA Media

Amazon will stream its first NBA doubleheader Friday.
Netflix
October 21, 2025

Netflix Staying on the Sidelines As TNT Sports Parent Seeks Buyer

The streaming giant shows little interest in acquisition possibilities.