Mass layoffs at Sports Illustrated prompted questions by Eastern Band of Cherokee tribal members about how these financial issues might impact a $316 million investment that the Eastern Band of Cherokee tribe made in Sports Illustrated Resorts in 2023.
Late last week, the prominent sports magazine announced that it would be laying off more than 100 employees, following the termination of an agreement between the licensing group and group that publishes the digital and print versions of Sports Illustrated.
Principal Chief Michell Hicks posted on Facebook on Saturday to address questions about how the tribe’s investments would be impacted by the potential closure.
“The Tribal Council, Vice Chief, and I have met with the Kituwah LLC and want to offer our reassurance that this recent development will have no impact on our Tribe,” Hicks said on Facebook.
Hicks explained that Kituwah LLC and the tribe are part of the ownership of the Sports Illustrated Resorts Hospitality License. He clarified that the hospitality license is a separate company and license from Sports Illustrated magazine.
“We are confident of the new opportunities that the Sports Illustrated Resorts will offer for our Tribe and look forward to continued success in the future,” Hicks said on Facebook.
Kituwah LLC is an economic development organization for the Eastern Band of Cherokee on the Qualla Boundary. The company launched in 2019, with the goal of diversifying the tribe’s revenue beyond “reservation-based gaming.” (The Kituwah board was formed in 2018.)
In 2023, Kituwah LLC announced that it would invest more than $300 million dollars over four years to become part-owners of Sports Illustrated Resorts, the Cherokee One Feather reported.
The company has organized a diverse slate of projects ranging from the purchase of a modular home company to the world’s largest Buc-ee’s gas station and a theme park developed by a French company.
Kituwah CEO Mark Hubble explained last year that the deal was modeled after the Seminole Tribe’s acquisition of Hard Rock International.
“I think our brand is at least as strong a brand as the other major brands that are out there, including Hard Rock. It is the most trusted name in sports…so, the brand name is Sports Illustrated Resorts,” Hubble told the One Feather.
It’s unclear how the Sports Illustrated brand will look in the future, but Kituwah LLC maintains that the layoffs will not impact the tribe’s investments.
“Kituwah LLC and the Eastern Band of Cherokee Indians do not have any exposure or investment in the publishing license and are not at risk financially as the matter is handled,” the company posted on Facebook.
In September 2023, Sports Illustrated Resorts announced a plan to college town resorts starting at the University of Alabama in Tuscaloosa. The project is in partnership with Travel + Leisure Co.
Kituwah LLC joined Travel & Leisure at the New York Stock Exchangein October 2023 to ring the opening bell in celebration of the deal.
In December, Kituwah LLC posted a job opening for the Chief Executive Officer position on its website. The post says the position closed on December 21, 2023.
