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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

features

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

Published in Health Club Management 2018 issue 1
Derek Gallup
Derek Gallup
Personal and group training is the key differentiator for the NeV brands. It’s where we create the deepest relationships and produce the best results for our members

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

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Footballer Christiano Ronaldo affiliated with NeV's brands / Marvin Ibo Güngör/DPA/PA
Footballer Christiano Ronaldo affiliated with NeV's brands / Marvin Ibo Güngör/DPA/PA
Basketball player Joakim Noah is affiliated with NeV's brands / Chicago Tribune/ABACA/PA Images
Basketball player Joakim Noah is affiliated with NeV's brands / Chicago Tribune/ABACA/PA Images
Gallup began his fitness career at Gold's Gym Hawaii, overseeing retail
Gallup began his fitness career at Gold's Gym Hawaii, overseeing retail
https://www.leisureopportunities.co.uk/images/515809_772172.jpg
The new chair of IHRSA, Derek Gallup, has big plans for his time with the organisation. He shares them with us...
Derek Gallup, chair of IHRSA,Derek Gallup, IHRSA
HCM magazine
Our competition need to fasten their seatbelts
HCM magazine
As the UK government’s social prescribing initiative gains momentum, Kenny Butler calls on the sector to step up and get involved
HCM magazine
Research confirms the role health clubs can play in supporting people in nurturing their mental health, as Victor Brick explains
HCM Magazine
Research
We’re not necessarily against weight loss, we just think that it shouldn’t be the primary criterion for judging the success of a lifestyle intervention programme
HCM Magazine
HCM People
Screens display power generated from each piece of equipment, allowing people to compete against each other for kilowatt hours produced
HCM Magazine
HCM People
Our vision is a future with ethnic diversity in aquatics
HCM Magazine
Editor's letter
In this issue, we’re focusing on sharing insights and thought leadership to highlight opportunities for the development of the sector in terms of both markets and offerings, says Liz Terry, HCM editor
HCM Magazine
Active ageing
David Minton says the healthy movement industry is ten times bigger than the health club sector, and the care industry four times bigger and ask why we’re not rushing to collaborate?
HCM Magazine
Sponsored
Andy Janes and Jamie Whisken explain the vision behind R1SE Bournemouth, and why Technogym was their choice of partner in delivering their unique fusion boutique
HCM Magazine
Tokyo Olympics
GLL is best known for running leisure facilities on behalf of local authorities across the UK, but a lesser-known part of its remit is its GLL Sport Foundation which supports Olympic hopefuls. Liz Terry finds out more
HCM Magazine
Latest News
Boutique operator 1Rebel has launched its first 1Rebel Labs Studio at its club in Holborn. ...
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The Local Government Association (LGA) has called on the UK government to invest £875m in ...
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Anthony Hamilton, the father of F1 racing driver Lewis Hamilton, is launching a fitness equipment ...
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The pandemic has had an "unprecedented" impact on physical activity levels in England, with 1 ...
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The first énergie Fitness club has opened in Spain as part of a push for ...
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A global innovation competition has been launched to find ways to encourage and support more ...
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Xponential Fitness has acquired Body Fit Training in a deal worth US$44m. The deal takes ...
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Exercise has been highlighted as a crucial weapon in cancer patients’ battle against the disease. ...
Featured supplier news
Featured supplier news: Are traditional gyms going to war with smart gyms?
CEO of Orbit4, Daniel Jones, says: “There’s no reason traditional gyms and smart gyms can’t live in harmony. With a little reorganisation and education, there’s a really bright future for all gyms.”
Featured supplier news
Featured supplier news: Uptivo: Individual and group heart rate tracking
Uptivo is an all-in-one digital solution for fitness clubs, fitness boutique studios and personal trainers that provides powerful tools to schedule activities, manage member payments, and monitor heart rate both for remote and on-site classes.
Featured operator news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
Everyone Active has signed a number of new deals which will see the operator strengthen its digital product offering, Everyone on Demand.
Featured operator news
Featured operator news: Everyone Active generates £342m in social value
Award-winning leisure operator Everyone Active generated £342million in social value at its sites across the country in 2019/20.
Company profiles
Company profile: RISE Fitness Franchise
RISE is a brand-new franchise created to fill an emerging gap. Outdoor workouts have become ...
Company profiles
Company profile: Hussle
Hussle exists for two reasons: To increase opportunities for people to engage in physical activity ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Uniforms
Service Sport: Uniforms
Spa software
SpaBooker: Spa software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Red Light Therapy
 Red Light Rising: Red Light Therapy
Wearable technology solutions
MyZone: Wearable technology solutions
Fitness equipment
Precor: Fitness equipment
trade associations
International SPA Association - iSPA: trade associations
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Salt therapy products
Saltability: Salt therapy products
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

features

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

Published in Health Club Management 2018 issue 1
Derek Gallup
Derek Gallup
Personal and group training is the key differentiator for the NeV brands. It’s where we create the deepest relationships and produce the best results for our members

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

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Footballer Christiano Ronaldo affiliated with NeV's brands / Marvin Ibo Güngör/DPA/PA
Footballer Christiano Ronaldo affiliated with NeV's brands / Marvin Ibo Güngör/DPA/PA
Basketball player Joakim Noah is affiliated with NeV's brands / Chicago Tribune/ABACA/PA Images
Basketball player Joakim Noah is affiliated with NeV's brands / Chicago Tribune/ABACA/PA Images
Gallup began his fitness career at Gold's Gym Hawaii, overseeing retail
Gallup began his fitness career at Gold's Gym Hawaii, overseeing retail
https://www.leisureopportunities.co.uk/images/515809_772172.jpg
The new chair of IHRSA, Derek Gallup, has big plans for his time with the organisation. He shares them with us...
Derek Gallup, chair of IHRSA,Derek Gallup, IHRSA
Latest News
Boutique operator 1Rebel has launched its first 1Rebel Labs Studio at its club in Holborn. ...
Latest News
The Local Government Association (LGA) has called on the UK government to invest £875m in ...
Latest News
Anthony Hamilton, the father of F1 racing driver Lewis Hamilton, is launching a fitness equipment ...
Latest News
The pandemic has had an "unprecedented" impact on physical activity levels in England, with 1 ...
Latest News
The first énergie Fitness club has opened in Spain as part of a push for ...
Latest News
A global innovation competition has been launched to find ways to encourage and support more ...
Latest News
Xponential Fitness has acquired Body Fit Training in a deal worth US$44m. The deal takes ...
Latest News
Exercise has been highlighted as a crucial weapon in cancer patients’ battle against the disease. ...
Latest News
The global health and fitness industry is returning to a busy programme of live trade ...
Latest News
Matrix and Intelivideo have signed a strategic partnership, which will see Intelivideo's fitness content integrated ...
Latest News
Nadine Dorries, the recently appointed secretary of state for digital, culture, media and sport at ...
Featured supplier news
Featured supplier news: Are traditional gyms going to war with smart gyms?
CEO of Orbit4, Daniel Jones, says: “There’s no reason traditional gyms and smart gyms can’t live in harmony. With a little reorganisation and education, there’s a really bright future for all gyms.”
Featured supplier news
Featured supplier news: Uptivo: Individual and group heart rate tracking
Uptivo is an all-in-one digital solution for fitness clubs, fitness boutique studios and personal trainers that provides powerful tools to schedule activities, manage member payments, and monitor heart rate both for remote and on-site classes.
Featured operator news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
Everyone Active has signed a number of new deals which will see the operator strengthen its digital product offering, Everyone on Demand.
Featured operator news
Featured operator news: Everyone Active generates £342m in social value
Award-winning leisure operator Everyone Active generated £342million in social value at its sites across the country in 2019/20.
Company profiles
Company profile: RISE Fitness Franchise
RISE is a brand-new franchise created to fill an emerging gap. Outdoor workouts have become ...
Company profiles
Company profile: Hussle
Hussle exists for two reasons: To increase opportunities for people to engage in physical activity ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Uniforms
Service Sport: Uniforms
Spa software
SpaBooker: Spa software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Red Light Therapy
 Red Light Rising: Red Light Therapy
Wearable technology solutions
MyZone: Wearable technology solutions
Fitness equipment
Precor: Fitness equipment
trade associations
International SPA Association - iSPA: trade associations
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Salt therapy products
Saltability: Salt therapy products
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
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