GET SPA BUSINESS
magazine
Yes! Send me the FREE digital editions of Spa Business and Spa Business insider magazines and the FREE weekly Spa Business and Spa Business insider ezines and breaking news alerts!
Not right now, thanksclose this window
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Features   Products   Company profilesProfiles   Magazine   Handbook   Advertise    Subscribe  
IHRSA update
Derek Gallup

Last June, executive VP of fitness for private-equity firm New Evolution Ventures (NeV) Derek Gallup became chair of IHRSA. Here, Gallup, who has worked in the industry for more than 20 years, provides an insight into NeV’s operations and shares his intentions for his time at IHRSA


You joined IHRSA six months ago. What has the experience been like?
It has truly been great, especially as I’ve been able to meet so many hard-working and inspirational industry leaders, who are also extremely innovative. For example, I recently had the privilege of giving a presentation on leadership during the 18th Annual IHRSA/Fitness Brasil Latin American Conference and Trade Show in São Paulo, and at the IHRSA European Congress in London. These events gave me the opportunity to interact with so many great people. The board has also formed a new international committee that’s made up of four members whose businesses are primarily located outside of the US. The goal is to better address the biggest issues and opportunities that the global industry faces today.

Tell us more about how the private-equity firm you work with operates
On the fitness side of things, NeV’s portfolio consist of the likes of UFC Gym, Crunch Fitness and A-Rod Energy Fitness. Mark Mastrov – NeV’s chair – has been an amazing presence in the team. He seems to operate years ahead of everyone else, quickly generating ideas that may precipitate a new brand. For example, the Ultimate Fighting Championship (UFC) concept was born when he and Jim Rowley, the CEO of NeV, had one meeting with the former owners of UFC: Dana White, Frank Fertitta and Lorenzo Fertitta.

Then there’s the influence of Mike Feeney, our executive vice president. He lays out every location and decides on the equipment that will go into each club. This creates the symbiosis of our various brands. We bring some brands together because they work synergistically or because we have successful operators who we know can manage several platforms.

Celebrity partners or franchisees are commonly affiliated with NeV’s brands. Why?
It’s true that nearly every NeV Brand has a celebrity involved with its corporate or franchised clubs. Crunch, for example, has partnered with football star Cristiano Ronaldo to create CR7Crunch, which has opened its first location in Madrid, Spain. Joakim Noah, of the New York Knicks, is working on plans to open five Crunch facilities in Chicago.

UFC Gym has joint venture partner sites with UFC stars B.J Penn, Frankie Edgar, Urijah Faber, Michael Bisping and Cub Swanson. A-Rod Energy Fitness involves a partnership with baseball legend Alex Rodriguez, who also partners with us on UFC Gyms in Miami.

Finally, there’s Hard Candy, which was created in partnership with Madonna. Involving celebrities, who are also known as personal fitness enthusiasts, is important in building these brands because they are well placed to help get the active and healthy lifestyle message out to the masses.

You’re the executive VP of fitness and retail at NeV. Tell us about that role
My role involves both fitness and retail because I’ve had professional experience in both fields. I started my career at Macy’s and then went to Liberty House – a specialty store chain in Hawaii. When I was at 24 Hour Fitness, I led the growth of its retail business to US$70 million a year. Today, NeV’s nutrition, accessories and apparel arms constitute 6 to 15 per cent of total revenue, per location, depending on the brand.

How much of a contribution do those three categories make?
Nutritional products make up the largest part of our retail business and that’s because our brands are focused on delivering successful training programmes that produce results for members. A nutrition component that includes menu-planning and nutritional supplementation is needed to produce such results. Our partner, dotFIT, led by Neal Spruce, has created a programme that delivers the right nutrition at the right time; we use it with all of our North American brands.

Accessories make up our second largest retail segment. This includes workout accessories, such as foam rollers and home exercise equipment, recommended by our trainers. At UFC Gym, we also offer mixed martial art accessories (MMA), in keeping with the brand’s USP. We also produce some branded apparel, but that’s not a huge part of our revenue. The retail business – nutrition, accessories, and apparel – is our third-largest revenue stream behind membership fees and personal training.

And what contribution do fitness offerings make to NeV’s overall revenue?
Personal and group training is the key differentiator for the NeV brands. It’s where we create the deepest relationships with our members and also produce the best results for them. Training is responsible for 25 to 35 per cent of total revenue, per location. In fact, training revenue is actually larger than membership fees in some locations.

With respect to fitness, we always strive to be at the tip of the spear especially in terms of who we choose to join our team, how we train them, and the technology we use to enhance the club and team member experience both in and out of the gym.

Finally, what do you hope to have accomplished by the end of your tenure with IHRSA?
There are two key things I would really like to achieve. Firstly I’d like to have had a hand in providing IHRSA members with the information and services that makes it possible for them to offer improved programming options to their members, and to significantly increase their membership bases in order to have a greater impact on their local communities.

I’d also like to see the IHRSA board recognised for having created a highly visible footprint, so it can grow, promote, and protect the industry – reversing the physical inactivity epidemic in the process. It may sound grandiose, but basically, I’d like to save the world through fitness!



IHRSA is the global trade association which represents 10,000 health and fitness facilities and suppliers. Learn how IHRSA can help your business at www.ihrsa.org
Footballer Christiano Ronaldo affiliated with NeV's brands Credit: Marvin Ibo Güngör/DPA/PA
Basketball player Joakim Noah is affiliated with NeV's brands Credit: Chicago Tribune/ABACA/PA Images
Gallup began his fitness career at Gold's Gym Hawaii, overseeing retail
FEATURED SUPPLIERS

How technology can help drive growth for your spa business
It's safe to say that technology is transforming every sector, and the spa, wellness and beauty industries are no exception. [more...]

Embrace the future of luxury science-backed skincare with Amra's Micro-Cellular Actives
Amra Skincare has positioned itself at the forefront of dermatological science and introduced its Micro-Cellular Actives line – a range of innovative molecular agents formulated to redefine the brand’s clinically-driven skincare applications for unparalleled results. [more...]
+ More featured suppliers  
COMPANY PROFILES
ESPA

Founded in 1992 by Susan Harmsworth, ESPA combines the conceptualisation, development and management [more...]
Yon-Ka

Yon-Ka offers a comprehensive range of expert face and body treatments to meet all your clients’ ne [more...]
+ More profiles  
CATALOGUE GALLERY
 

+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

22-24 Apr 2024

UK Aufguss Championships

Galgorm Resort, York,
23-25 Apr 2024

ISPA Conference 2024

Phoenix Convention Center, Phoenix, United States
+ More diary  
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
SPA BUSINESS
SPA OPPORTUNITIES
SPA BUSINESS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Products   Magazine   Subscribe
IHRSA update
Derek Gallup

Last June, executive VP of fitness for private-equity firm New Evolution Ventures (NeV) Derek Gallup became chair of IHRSA. Here, Gallup, who has worked in the industry for more than 20 years, provides an insight into NeV’s operations and shares his intentions for his time at IHRSA


You joined IHRSA six months ago. What has the experience been like?
It has truly been great, especially as I’ve been able to meet so many hard-working and inspirational industry leaders, who are also extremely innovative. For example, I recently had the privilege of giving a presentation on leadership during the 18th Annual IHRSA/Fitness Brasil Latin American Conference and Trade Show in São Paulo, and at the IHRSA European Congress in London. These events gave me the opportunity to interact with so many great people. The board has also formed a new international committee that’s made up of four members whose businesses are primarily located outside of the US. The goal is to better address the biggest issues and opportunities that the global industry faces today.

Tell us more about how the private-equity firm you work with operates
On the fitness side of things, NeV’s portfolio consist of the likes of UFC Gym, Crunch Fitness and A-Rod Energy Fitness. Mark Mastrov – NeV’s chair – has been an amazing presence in the team. He seems to operate years ahead of everyone else, quickly generating ideas that may precipitate a new brand. For example, the Ultimate Fighting Championship (UFC) concept was born when he and Jim Rowley, the CEO of NeV, had one meeting with the former owners of UFC: Dana White, Frank Fertitta and Lorenzo Fertitta.

Then there’s the influence of Mike Feeney, our executive vice president. He lays out every location and decides on the equipment that will go into each club. This creates the symbiosis of our various brands. We bring some brands together because they work synergistically or because we have successful operators who we know can manage several platforms.

Celebrity partners or franchisees are commonly affiliated with NeV’s brands. Why?
It’s true that nearly every NeV Brand has a celebrity involved with its corporate or franchised clubs. Crunch, for example, has partnered with football star Cristiano Ronaldo to create CR7Crunch, which has opened its first location in Madrid, Spain. Joakim Noah, of the New York Knicks, is working on plans to open five Crunch facilities in Chicago.

UFC Gym has joint venture partner sites with UFC stars B.J Penn, Frankie Edgar, Urijah Faber, Michael Bisping and Cub Swanson. A-Rod Energy Fitness involves a partnership with baseball legend Alex Rodriguez, who also partners with us on UFC Gyms in Miami.

Finally, there’s Hard Candy, which was created in partnership with Madonna. Involving celebrities, who are also known as personal fitness enthusiasts, is important in building these brands because they are well placed to help get the active and healthy lifestyle message out to the masses.

You’re the executive VP of fitness and retail at NeV. Tell us about that role
My role involves both fitness and retail because I’ve had professional experience in both fields. I started my career at Macy’s and then went to Liberty House – a specialty store chain in Hawaii. When I was at 24 Hour Fitness, I led the growth of its retail business to US$70 million a year. Today, NeV’s nutrition, accessories and apparel arms constitute 6 to 15 per cent of total revenue, per location, depending on the brand.

How much of a contribution do those three categories make?
Nutritional products make up the largest part of our retail business and that’s because our brands are focused on delivering successful training programmes that produce results for members. A nutrition component that includes menu-planning and nutritional supplementation is needed to produce such results. Our partner, dotFIT, led by Neal Spruce, has created a programme that delivers the right nutrition at the right time; we use it with all of our North American brands.

Accessories make up our second largest retail segment. This includes workout accessories, such as foam rollers and home exercise equipment, recommended by our trainers. At UFC Gym, we also offer mixed martial art accessories (MMA), in keeping with the brand’s USP. We also produce some branded apparel, but that’s not a huge part of our revenue. The retail business – nutrition, accessories, and apparel – is our third-largest revenue stream behind membership fees and personal training.

And what contribution do fitness offerings make to NeV’s overall revenue?
Personal and group training is the key differentiator for the NeV brands. It’s where we create the deepest relationships with our members and also produce the best results for them. Training is responsible for 25 to 35 per cent of total revenue, per location. In fact, training revenue is actually larger than membership fees in some locations.

With respect to fitness, we always strive to be at the tip of the spear especially in terms of who we choose to join our team, how we train them, and the technology we use to enhance the club and team member experience both in and out of the gym.

Finally, what do you hope to have accomplished by the end of your tenure with IHRSA?
There are two key things I would really like to achieve. Firstly I’d like to have had a hand in providing IHRSA members with the information and services that makes it possible for them to offer improved programming options to their members, and to significantly increase their membership bases in order to have a greater impact on their local communities.

I’d also like to see the IHRSA board recognised for having created a highly visible footprint, so it can grow, promote, and protect the industry – reversing the physical inactivity epidemic in the process. It may sound grandiose, but basically, I’d like to save the world through fitness!



IHRSA is the global trade association which represents 10,000 health and fitness facilities and suppliers. Learn how IHRSA can help your business at www.ihrsa.org
Footballer Christiano Ronaldo affiliated with NeV's brands Credit: Marvin Ibo Güngör/DPA/PA
Basketball player Joakim Noah is affiliated with NeV's brands Credit: Chicago Tribune/ABACA/PA Images
Gallup began his fitness career at Gold's Gym Hawaii, overseeing retail
LATEST NEWS
Circadian Trust invests in wellness to support its NHS partnerships
Operator Circadian Trust has launched a five-year growth drive designed to support health and wellbeing across South Gloucestershire, UK. The initiative will see a £2.4m investment in its five Active Lifestyle Centres.
US named world’s largest wellness economy, reaching US$1.8 trillion valuation
The Global Wellness Institute (GWI) has released new data on the US’ wellness economy, valuing it at US$1.8 trillion.
Galgorm Resort gears up to host UK Aufguss Championships next week
UK sauna enthusiasts will converge at Galgorm Resort in Northern Ireland next week for the highly anticipated second annual UK Aufguss Championships.
Remedy Place to launch two new social wellness clubs annually as part of rollout strategy
Remedy Place, a US-based social wellness club brand, is poised for steady expansion in the coming years, with plans to open two new clubs annually moving forward.
Clinique La Prairie to operate health resort at Tri Vananda in Phuket
Swiss longevity brand Clinique La Prairie (CLP) has inked a deal with Montara Hospitality Group to operate a resort at Tri Vananda – a purpose-built wellness community in Phuket, Thailand.
Six Senses La Sagesse launches with lagoon-fronted spa inspired by Caribbean fishing villages
Six Senses has announced the grand opening of its first-ever property and spa in the Caribbean, called Six Senses La Sagesse.
Basic-Fit trials corporate wellness drive across its Spanish clubs
Basic-Fit has signed up to trial the Wellhub network across its recently expanded Spanish network, giving access to subscribers and enabling them to use all 152 of its Spanish clubs.
Go Fit CEO, Mário Barbosa, unveils expansion plans in this month’s HCM
Having redefined the model of public-private collaboration in Spain, Go Fit is now expanding into Italy and has ambitious plans to grow its estate, memberships and profits.
US$60m Zion Canyon Hot Springs project breaks ground in Southern Utah
A brand new desert hot springs oasis, called Zion Canyon Hot Springs, is set to open in Southern Utah in Q3 of 2025.
Dedicated recovery clubs tipped to become a trend
Recovery, social wellness and longevity were talking points at the recent PerformX Live, tipped by many speakers as upcoming trends, while the exhibition halls featured infrared saunas, compression therapy and ice baths.
Research: Kundalini yoga provides cognitive benefits to postmenopausal women at risk of Alzheimer's
A new study by UCLA Health found Kundalini yoga provided several benefits to cognition and memory for older women at risk of developing Alzheimer’s disease.
New lakeside spa oasis set to open at The Ritz-Carlton-Reynolds, Lake Oconee
Luxury lakeside retreat The Ritz-Carlton-Reynolds, Lake Oconee in Georgia, US, is gearing up to unveil its new-look destination spa this May following a comprehensive makeover.
+ More news   
 
FEATURED SUPPLIERS

How technology can help drive growth for your spa business
It's safe to say that technology is transforming every sector, and the spa, wellness and beauty industries are no exception. [more...]

Embrace the future of luxury science-backed skincare with Amra's Micro-Cellular Actives
Amra Skincare has positioned itself at the forefront of dermatological science and introduced its Micro-Cellular Actives line – a range of innovative molecular agents formulated to redefine the brand’s clinically-driven skincare applications for unparalleled results. [more...]
+ More featured suppliers  
COMPANY PROFILES
ESPA

Founded in 1992 by Susan Harmsworth, ESPA combines the conceptualisation, development and management [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

22-24 Apr 2024

UK Aufguss Championships

Galgorm Resort, York,
23-25 Apr 2024

ISPA Conference 2024

Phoenix Convention Center, Phoenix, United States
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS