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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
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Boxing-inspired fitness operator Rumble has signed a master franchise agreement in Australia, which could see ...
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People should concentrate on exercise and staying fit – rather than dieting and weight loss ...
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Sibec Europe, scheduled to take place in Cologne, Germany, from 2 to 5 November 2021, ...
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Swim England has warned that 2,000 swimming pools could be lost forever unless the government ...
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Sports Minister, Nigel Huddleston, has joined gym-goers this morning to kick-off the annual National Fitness ...
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Featured supplier news: Will your business last without digital transformation?
During the pandemic, a digital transformation took off faster than anyone could have predicted with meetings in person cancelled and millions working from home.
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Suffice to say that the pandemic has completely changed the way fitness professionals work and the way consumers work out – and therein lies opportunity.
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.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Company profiles
Company profile: Mindbody
Mindbody is the leading technology platform for the wellness industry, featuring an app that allows ...
Company profiles
Company profile: Octane Fitness UK
A global innovator of innovation and variety in fitness equipment, Octane Fitness, a True Fitness ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Architects/designers
Zynk Design Consultants: Architects/designers
Salt therapy products
Himalayan Source: Salt therapy products
Exercise equipment
Pendex Fisio S.L.: Exercise equipment
Management software
Premier Software Solutions: Management software
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Spa software
SpaBooker: Spa software
Skincare
Comfort Zone - Davines S.p.A: Skincare
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Fitness equipment
Precor: Fitness equipment
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
13-14 Oct 2021
Online,
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
Boxing-inspired fitness operator Rumble has signed a master franchise agreement in Australia, which could see ...
Latest News
Hotel giant Accor has launched a new bespoke, premium fitness service for its upmarket Pullman ...
Latest News
People should concentrate on exercise and staying fit – rather than dieting and weight loss ...
Latest News
Sibec Europe, scheduled to take place in Cologne, Germany, from 2 to 5 November 2021, ...
Latest News
Swim England has warned that 2,000 swimming pools could be lost forever unless the government ...
Latest News
Sports Minister, Nigel Huddleston, has joined gym-goers this morning to kick-off the annual National Fitness ...
Latest News
A new high-end workspace, designed for the use of personal trainers, coaches and other health ...
Latest News
VAT reform, adjustments in business rates and a fitness-led high street regeneration push could see ...
Latest News
Peloton has completed the merging of its commercial operations with Precor, the equipment brand it ...
Latest News
Half of UK adults aren't happy with their physical fitness levels, according to a study ...
Latest News
Temporary measures brought in to support businesses in the UK from insolvency during the pandemic ...
Featured supplier news
Featured supplier news: Will your business last without digital transformation?
During the pandemic, a digital transformation took off faster than anyone could have predicted with meetings in person cancelled and millions working from home.
Featured supplier news
Featured supplier news: Active IQ Skills Hub helps fitness professionals boost skills in post-Covid market
Suffice to say that the pandemic has completely changed the way fitness professionals work and the way consumers work out – and therein lies opportunity.
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.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Company profiles
Company profile: Mindbody
Mindbody is the leading technology platform for the wellness industry, featuring an app that allows ...
Company profiles
Company profile: Octane Fitness UK
A global innovator of innovation and variety in fitness equipment, Octane Fitness, a True Fitness ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Architects/designers
Zynk Design Consultants: Architects/designers
Salt therapy products
Himalayan Source: Salt therapy products
Exercise equipment
Pendex Fisio S.L.: Exercise equipment
Management software
Premier Software Solutions: Management software
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Spa software
SpaBooker: Spa software
Skincare
Comfort Zone - Davines S.p.A: Skincare
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Fitness equipment
Precor: Fitness equipment
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
13-14 Oct 2021
Online,
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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