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How Private Equity Bought Every Gym in America

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If your revenues are at least in the seven figures, get our free business guide, Aligning for the Agentic Era: How AI Is Changing Everyday Work, at https://netsuite.com/modernmba πŸ“Š Short on time? 20 charts, 13 animations, key takeaways, and the full write-up: https://modern-mba.com/case/gyms Almost every gym chain in America is owned by private equity, or used to be. Planet Fitness, 24 Hour Fitness, Gold’s, Equinox, Life Time, Orangetheory, SoulCycle, CorePower, Club Pilates, solidcore: for 30 years, the same small circle of firms has been buying these chains, passing them back and forth, and getting paid every time your membership renews. The reason is your monthly payment. It goes out like rent whether you show up or not, and a bank will lend against it. So a private equity fund borrows against the members to buy the chain, puts the loan in the gym’s name instead of its own, borrows again to expand, borrows a third time to pay itself, and sells the whole thing to the next fund before the bill comes due. That’s how 24 Hour Fitness got bought three times and ended up in bankruptcy, how Planet Fitness’s owner made seven times its money in under five years without making the gym any better, and how Life Time ended up renting buildings it used to own. In this Modern MBA episode, we follow the money through 40 years of the fitness industry: Bally’s three-year loans disguised as memberships in the 80s, the big box and the first wave of private equity in the 90s, the $10 small box in the 2000s, the boutique studio boom and bust in the 2010s, and the pilates wave that Wall Street is funding right now. Who really owns your gym, who gets paid when you don’t show up, and why it’s so hard to cancel. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━ SUPPORT MODERN MBA - we're 100% independent, self-funded, and committed to making business education free for everyone. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 🌐 Website: https://modern-mba.com Search our entire catalog, browse videos by industry, read summaries + key takeaways, swipe through charts β€” no ads, no emails, no pop-ups! πŸ“Έ Instagram: https://www.instagram.com/modern.mba/ 🎡 TikTok: https://www.tiktok.com/@modernmba πŸ’¬ Reddit: https://www.reddit.com/r/modernmba/ β˜• Support Modern MBA: https://buymeacoffee.com/modernmba

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