1 00:00:00,280 --> 00:00:03,560 Speaker 1: This is the business of sports where in the situation 2 00:00:03,640 --> 00:00:06,400 Speaker 1: that we haven't dealt with in modern times, pandemic here 3 00:00:06,440 --> 00:00:10,479 Speaker 1: has really accelerated the investments that we've been advocating for 4 00:00:10,480 --> 00:00:12,880 Speaker 1: for years. From a macro standpoint, I think our sport 5 00:00:12,920 --> 00:00:16,360 Speaker 1: industry is really forced to look at the business a 6 00:00:16,440 --> 00:00:19,639 Speaker 1: little bit differently. In depth conversations with the leaders in 7 00:00:19,720 --> 00:00:22,759 Speaker 1: the sports industry. Who wants to be the sacrificial lambs 8 00:00:22,800 --> 00:00:25,680 Speaker 1: that shows up at the first big major sporting events 9 00:00:25,680 --> 00:00:27,640 Speaker 1: for part of something much bigger than the sports right 10 00:00:27,640 --> 00:00:30,080 Speaker 1: now and the health and safety of our stakeholders the 11 00:00:30,120 --> 00:00:32,839 Speaker 1: books much important every moment. I think we're all from 12 00:00:32,840 --> 00:00:35,560 Speaker 1: the business respective thinking about the impact that the virus 13 00:00:35,600 --> 00:00:38,960 Speaker 1: is having across the country. And Bloomberg Business of Sports 14 00:00:39,000 --> 00:00:42,640 Speaker 1: from Bloomberg Radio. Hello, I'm Jason Kelly, Mike Lynch, and 15 00:00:42,640 --> 00:00:45,560 Speaker 1: I'm Michael bar Every week at this time plus Mondays 16 00:00:45,600 --> 00:00:48,120 Speaker 1: and Wednesdays, we explore the big money issues in the 17 00:00:48,159 --> 00:00:51,519 Speaker 1: world of sports. Today, you sit down with retro Fitness 18 00:00:51,520 --> 00:00:55,720 Speaker 1: CEO Andrew Olfano as gyms in New York finally have 19 00:00:55,840 --> 00:00:59,640 Speaker 1: a timeline for reopening with extensive coronavirus guidelines. Of course, 20 00:01:00,080 --> 00:01:03,200 Speaker 1: will discuss the land for health clubs and the impact 21 00:01:03,440 --> 00:01:06,440 Speaker 1: the pandemic has had on the industry. That straight ahead 22 00:01:06,560 --> 00:01:09,360 Speaker 1: on the Bloomberg Business of Sports Show. But first let's 23 00:01:09,480 --> 00:01:11,240 Speaker 1: look at some of the top stories of the week. 24 00:01:11,959 --> 00:01:15,800 Speaker 1: And Jason, let's begin with football. We're gonna start with 25 00:01:15,880 --> 00:01:19,240 Speaker 1: the NFL and the n c double A take it away, Well, 26 00:01:19,280 --> 00:01:22,040 Speaker 1: this is what we've all sort of been looking ahead 27 00:01:22,080 --> 00:01:25,640 Speaker 1: to in many ways. We've spent so many hours, the 28 00:01:25,720 --> 00:01:28,000 Speaker 1: three of us, over the past few months, you know, 29 00:01:28,120 --> 00:01:30,880 Speaker 1: talking about the NBA getting back to business, talking about 30 00:01:30,920 --> 00:01:33,760 Speaker 1: the NHL getting back to business, Major League Baseball, what 31 00:01:33,880 --> 00:01:36,680 Speaker 1: a mess that's been. Even premier lacrosse they were able 32 00:01:36,720 --> 00:01:40,959 Speaker 1: to get it all going, Major League soccer. But we 33 00:01:41,240 --> 00:01:46,280 Speaker 1: know that football, pro and college that is when we 34 00:01:46,360 --> 00:01:48,760 Speaker 1: talk about the business of sports, that is the biggest 35 00:01:48,800 --> 00:01:53,080 Speaker 1: business in the business of sports. The NFL, they are 36 00:01:53,760 --> 00:01:56,559 Speaker 1: hell bent, it feels like, on getting back to some 37 00:01:56,720 --> 00:02:02,000 Speaker 1: semblance of normal, even with some fan ends. Lynchy, are 38 00:02:02,040 --> 00:02:04,720 Speaker 1: we dreaming here? I thought we were dreaming. I thought 39 00:02:04,720 --> 00:02:06,880 Speaker 1: this was the one sport that would have no shot 40 00:02:07,320 --> 00:02:10,640 Speaker 1: of going out and being able to finish a season. 41 00:02:11,360 --> 00:02:15,959 Speaker 1: Now this week, midweek, we're taping this on Thursday morning. 42 00:02:16,040 --> 00:02:19,000 Speaker 1: Teams just came out for first contact practices. They have 43 00:02:19,080 --> 00:02:21,480 Speaker 1: been out in helmets and just jerseys before, so there 44 00:02:21,520 --> 00:02:24,200 Speaker 1: hadn't been any contact. They're not living in a bubble. 45 00:02:24,720 --> 00:02:27,720 Speaker 1: And I don't see any difference between this and Major 46 00:02:27,800 --> 00:02:31,760 Speaker 1: League Baseball, where some players went. How the players are 47 00:02:31,800 --> 00:02:34,000 Speaker 1: free to go wherever they want. There's no more training camps. 48 00:02:34,000 --> 00:02:36,520 Speaker 1: They don't live in dormitories like they used to. Um, 49 00:02:36,560 --> 00:02:38,680 Speaker 1: I mean some some school teams still do. I think 50 00:02:38,680 --> 00:02:41,079 Speaker 1: the Buffalo Bills are still up in the St. John's 51 00:02:41,120 --> 00:02:44,560 Speaker 1: in New York, upstate. But it's only gonna take one 52 00:02:44,560 --> 00:02:46,440 Speaker 1: player to come through and just have it ripped through 53 00:02:46,480 --> 00:02:49,120 Speaker 1: an entire locker room. So we might be having pipe 54 00:02:49,160 --> 00:02:52,400 Speaker 1: dreams about this bar. What do you think? Well, something 55 00:02:52,520 --> 00:02:57,239 Speaker 1: I didn't realize, And to give you a comparison, the CFL, 56 00:02:57,360 --> 00:03:01,480 Speaker 1: the Canadian Football League. They've canceled the season. And what 57 00:03:01,600 --> 00:03:05,280 Speaker 1: I didn't know is, unlike the NFL, where they generated 58 00:03:05,320 --> 00:03:09,840 Speaker 1: a lot of their revenue from the national TV rights 59 00:03:10,040 --> 00:03:15,560 Speaker 1: and the ads, the CFL they generate their revenue basically 60 00:03:15,639 --> 00:03:18,880 Speaker 1: from ticket sales. And if you don't have fans in 61 00:03:18,919 --> 00:03:22,000 Speaker 1: the stands, obviously you're not going to generate much and 62 00:03:22,040 --> 00:03:25,240 Speaker 1: they were trying to come up with a shortened season 63 00:03:25,360 --> 00:03:29,440 Speaker 1: in Winnipeg, UH for next month, but that plan all 64 00:03:29,520 --> 00:03:33,560 Speaker 1: fell through. So you guys are right there, hell met 65 00:03:33,680 --> 00:03:37,000 Speaker 1: the NFL on doing this and and I just don't 66 00:03:37,040 --> 00:03:39,960 Speaker 1: see it. And for that matter, I don't see how 67 00:03:40,000 --> 00:03:41,720 Speaker 1: college football is going to do it. I mean, no, 68 00:03:41,840 --> 00:03:44,600 Speaker 1: Tre Dame is is having problems. Yeah, I mean, so 69 00:03:44,680 --> 00:03:46,800 Speaker 1: let's talk about that. I mean that, as you guys 70 00:03:46,840 --> 00:03:49,120 Speaker 1: both know, very close to my heart, being a Southerner 71 00:03:49,480 --> 00:03:52,040 Speaker 1: SEC football, it is all the rage. I just listen 72 00:03:52,080 --> 00:03:54,640 Speaker 1: to a podcast when I was on vacation, a deep 73 00:03:54,680 --> 00:03:58,120 Speaker 1: dive into the world of Alabama football. Highly recommend that. 74 00:03:58,200 --> 00:04:01,320 Speaker 1: It's The Origins podcast by Jim Ller, who wrote the 75 00:04:01,360 --> 00:04:04,640 Speaker 1: definitive book about ESPN and s n L and ci A, 76 00:04:05,360 --> 00:04:09,880 Speaker 1: and he did this incredible dive into the whole sabing 77 00:04:10,000 --> 00:04:13,000 Speaker 1: system in the University of Alabama. We've talked about this 78 00:04:13,040 --> 00:04:15,080 Speaker 1: a lot in this show. It's a huge business in 79 00:04:15,120 --> 00:04:17,240 Speaker 1: that part of the country, in the Midwest as well, 80 00:04:18,000 --> 00:04:21,960 Speaker 1: and yet the Big Ten they're not playing football the 81 00:04:22,080 --> 00:04:24,840 Speaker 1: SEC they are. My father went to Georgia Tech. We 82 00:04:24,960 --> 00:04:27,680 Speaker 1: just got an email yesterday from Georgia Tech saying we're 83 00:04:27,680 --> 00:04:31,920 Speaker 1: gonna be playing lower capacity at the stands. But the 84 00:04:31,920 --> 00:04:34,240 Speaker 1: only good news it feels like coming out of that 85 00:04:34,600 --> 00:04:37,279 Speaker 1: for the first time ever at historic Grant Field, they're 86 00:04:37,320 --> 00:04:40,080 Speaker 1: selling beer. So maybe that's how you get through it 87 00:04:40,160 --> 00:04:42,599 Speaker 1: is you just drink a lot. Like I mean, I 88 00:04:42,720 --> 00:04:45,320 Speaker 1: just I don't see it. I don't see it, especially 89 00:04:45,920 --> 00:04:50,680 Speaker 1: to your point, Michael Barr, when you have students being quarantined, 90 00:04:50,800 --> 00:04:54,040 Speaker 1: whether it is at University of North Carolina Chapel Hill 91 00:04:54,160 --> 00:04:58,080 Speaker 1: down in North Carolina or at Notre Dame where they've 92 00:04:58,120 --> 00:05:00,880 Speaker 1: taken everybody online. I don't know what it's like up 93 00:05:00,920 --> 00:05:05,360 Speaker 1: by you, Lynchy, but I just I don't see college 94 00:05:05,360 --> 00:05:09,520 Speaker 1: football being viable here, especially as part of a college system. Well, 95 00:05:09,520 --> 00:05:12,440 Speaker 1: the governor of Massachusetts yesterday said that no fans will 96 00:05:12,440 --> 00:05:14,919 Speaker 1: be allowed at any games through the month of September. 97 00:05:15,000 --> 00:05:17,839 Speaker 1: So the Patriots have two home games. That's out. Boston 98 00:05:17,880 --> 00:05:20,280 Speaker 1: College is in the a c C. They're going ahead 99 00:05:20,320 --> 00:05:23,240 Speaker 1: and they're playing they have a home games, no fans allowed. 100 00:05:23,680 --> 00:05:26,240 Speaker 1: The big thing with college football. I have a nephew 101 00:05:26,279 --> 00:05:30,040 Speaker 1: who's leaving for Syracuse on Friday. So right now, just 102 00:05:30,080 --> 00:05:32,920 Speaker 1: the football team is on campus. But here comes everybody 103 00:05:32,960 --> 00:05:34,719 Speaker 1: from every part of the country, and you don't know 104 00:05:34,760 --> 00:05:37,599 Speaker 1: where they've been, who they've been around. And I don't 105 00:05:37,640 --> 00:05:40,360 Speaker 1: care what how many times you tell a college student, look, 106 00:05:40,440 --> 00:05:44,719 Speaker 1: this is a dangerous virus and no social social distancing. 107 00:05:44,960 --> 00:05:47,760 Speaker 1: There's gonna be keg parties. There's gonna be parties off campus, 108 00:05:47,760 --> 00:05:50,560 Speaker 1: and everyone's gonna go to them, and somebody's gonna get sick, 109 00:05:50,600 --> 00:05:53,360 Speaker 1: and somebody's going to infect a college football player. It's 110 00:05:53,360 --> 00:05:57,640 Speaker 1: got to happen. It's almost impossible. Yeah, So one of 111 00:05:57,680 --> 00:06:00,760 Speaker 1: the things we have seen work and as of today, 112 00:06:00,800 --> 00:06:04,240 Speaker 1: and this hopefully will hold until you're listening to this 113 00:06:04,720 --> 00:06:08,120 Speaker 1: over the weekend. As Lynch said, we're taping this on Thursday. 114 00:06:08,200 --> 00:06:12,400 Speaker 1: The NBA in the bubble has had zero cases. The 115 00:06:12,520 --> 00:06:17,279 Speaker 1: quarantine playbook, that's what the US Open, the US Tennis 116 00:06:17,279 --> 00:06:21,000 Speaker 1: Open set to happen here in New York City is 117 00:06:21,040 --> 00:06:25,440 Speaker 1: going to follow as well. And yet it's very clear 118 00:06:25,600 --> 00:06:28,359 Speaker 1: this is going to be a very very different Open, 119 00:06:28,839 --> 00:06:31,920 Speaker 1: and it's gonna be a lot less star studded. And 120 00:06:32,120 --> 00:06:34,240 Speaker 1: I'm not just talking about the famous New Yorkers in 121 00:06:34,279 --> 00:06:38,359 Speaker 1: the stands, even the on court Michael barr is gonna 122 00:06:38,400 --> 00:06:43,160 Speaker 1: be a little week. Yeah, it's it's not going to 123 00:06:43,240 --> 00:06:46,359 Speaker 1: have the same atmosphere. Uh And and I don't know 124 00:06:46,440 --> 00:06:53,000 Speaker 1: anybody realized it. Uh no fans and among the athletes 125 00:06:53,080 --> 00:06:58,400 Speaker 1: and the people, they're they're gonna be uh social distancing ambassadors. 126 00:06:58,800 --> 00:07:00,720 Speaker 1: And what they're gonna do is that they're going to 127 00:07:00,839 --> 00:07:05,640 Speaker 1: make sure that people are safely staying away in a 128 00:07:05,839 --> 00:07:08,920 Speaker 1: space for a distance, and people are wearing masks. They're 129 00:07:08,920 --> 00:07:14,720 Speaker 1: gonna have uh five hundred thousand masks that they're going 130 00:07:14,800 --> 00:07:18,640 Speaker 1: to have on site so they can distribute those two 131 00:07:18,640 --> 00:07:23,520 Speaker 1: people um in need for for that. And but I 132 00:07:23,560 --> 00:07:26,560 Speaker 1: just don't know, Uh, it's gonna be an you know, 133 00:07:26,680 --> 00:07:29,200 Speaker 1: it's like the crowd is always something in any sporting event. 134 00:07:29,240 --> 00:07:33,200 Speaker 1: I wonder what it's gonna be like without fans this time. 135 00:07:33,240 --> 00:07:35,760 Speaker 1: But Lynchy, I mean, you look at the players who 136 00:07:35,960 --> 00:07:41,000 Speaker 1: are playing and are not playing. No Nadal, no Ashley Barty, 137 00:07:41,400 --> 00:07:45,240 Speaker 1: no Simona Hollop. You do have at this moment again, 138 00:07:45,800 --> 00:07:51,080 Speaker 1: here we are on Thursday August, Serena Williams, Djokovic and 139 00:07:51,080 --> 00:07:55,200 Speaker 1: Andy Murray. They are still going to play or they 140 00:07:55,240 --> 00:07:58,520 Speaker 1: are still scheduled to play. I don't know it I'm 141 00:07:58,600 --> 00:08:01,120 Speaker 1: I'm so, I'm so bummed about this. We usually our 142 00:08:01,200 --> 00:08:04,640 Speaker 1: business week, Joe, we usually do to live broadcasts from 143 00:08:04,720 --> 00:08:07,280 Speaker 1: the US Open, and obviously we're not doing that this year. 144 00:08:07,560 --> 00:08:09,920 Speaker 1: It just, I don't know, it's sort of limping across 145 00:08:09,920 --> 00:08:11,840 Speaker 1: the finish line. To me, Well, it's like watching one 146 00:08:11,840 --> 00:08:14,200 Speaker 1: of those matches over in one of the auxiliary courts 147 00:08:14,200 --> 00:08:17,280 Speaker 1: where you know there's there's a hundred litre seats. You know, 148 00:08:17,520 --> 00:08:19,000 Speaker 1: you'll be able to hear a lot of the grunting 149 00:08:19,120 --> 00:08:24,720 Speaker 1: going on when they serve, and you want you won't 150 00:08:24,720 --> 00:08:27,520 Speaker 1: need any microphones on the on the court for that. 151 00:08:27,520 --> 00:08:31,400 Speaker 1: That's one of the one advantages. Yeah, that's true. But 152 00:08:31,400 --> 00:08:34,240 Speaker 1: but you know what, but but if you're starved for tennis, um, 153 00:08:34,320 --> 00:08:36,560 Speaker 1: you know the names you just rattled off, that's enough 154 00:08:36,600 --> 00:08:38,960 Speaker 1: for me. Yeah, there you go. I mean that's true. 155 00:08:39,080 --> 00:08:41,480 Speaker 1: And and I will say, I think part of my 156 00:08:41,600 --> 00:08:45,160 Speaker 1: sadness around it is, you know, not being able not 157 00:08:45,240 --> 00:08:47,960 Speaker 1: just to do our broadcast, but you know, I typically 158 00:08:48,000 --> 00:08:50,160 Speaker 1: go out a number of nights and sort of take 159 00:08:50,200 --> 00:08:52,880 Speaker 1: it all in and it's just the quintessential to me 160 00:08:53,679 --> 00:08:58,520 Speaker 1: New York sports experience. It's sort of signals the dawn 161 00:08:58,600 --> 00:09:00,800 Speaker 1: of the fall, the end of the summer, you sort 162 00:09:00,840 --> 00:09:03,080 Speaker 1: of go and you see and be seen. Uh. In 163 00:09:03,120 --> 00:09:06,040 Speaker 1: any case, all right, back to baseball before we wrap up, 164 00:09:06,160 --> 00:09:09,440 Speaker 1: got to talk about Trevor Bauer. He was on this 165 00:09:09,520 --> 00:09:13,960 Speaker 1: show man. I think irrascible is the only word that 166 00:09:14,040 --> 00:09:18,800 Speaker 1: you can use in polite company that really captures who 167 00:09:18,800 --> 00:09:21,840 Speaker 1: this guy is. Uh. He wanted to wear some cleats 168 00:09:22,040 --> 00:09:26,679 Speaker 1: as an homage to some extent to Joe Kelly, a 169 00:09:26,760 --> 00:09:31,079 Speaker 1: name familiar to you, Lynchy now playing for the Dodgers. 170 00:09:31,120 --> 00:09:33,040 Speaker 1: He obviously was caught up in this big sort of 171 00:09:33,160 --> 00:09:37,080 Speaker 1: scandal of sorts with the Houston Astros. But Trevor Bauer, 172 00:09:37,400 --> 00:09:41,680 Speaker 1: he will not be tamed. Free Joe Kelly, Free Joe Kelly. 173 00:09:41,760 --> 00:09:44,400 Speaker 1: The Joe Kelly Fight Club. People are still wearing t 174 00:09:44,520 --> 00:09:47,000 Speaker 1: shirts up here, the Joe Kelly Fight Club, because he 175 00:09:47,080 --> 00:09:48,800 Speaker 1: took on a member of the New York Yankees one 176 00:09:48,840 --> 00:09:50,199 Speaker 1: He started in the mound and said, come on, come on, 177 00:09:50,240 --> 00:09:52,400 Speaker 1: get me, and they just you know, ahead of her all. 178 00:09:52,480 --> 00:09:55,560 Speaker 1: So he is beloved up here forever and ever. But 179 00:09:55,600 --> 00:09:58,319 Speaker 1: you know, Trevor Bauer, you're right he uh, he walks 180 00:09:58,360 --> 00:10:00,600 Speaker 1: to his own beat and he we had him on 181 00:10:00,640 --> 00:10:03,959 Speaker 1: this show, and he was absolutely fascinating. Major League Baseball 182 00:10:04,000 --> 00:10:06,640 Speaker 1: has threatened that if he has that, he wears any 183 00:10:06,679 --> 00:10:09,240 Speaker 1: shoe like that, he could be suspended and find and 184 00:10:09,360 --> 00:10:11,520 Speaker 1: we all know the suspensions are a lot longer now 185 00:10:11,559 --> 00:10:15,880 Speaker 1: than they were before this restart happened. So he's interesting. 186 00:10:15,920 --> 00:10:20,079 Speaker 1: And he's also, uh, five strikeouts away from some libation 187 00:10:20,200 --> 00:10:23,640 Speaker 1: coming the way of the folks in Cincinnati. This is 188 00:10:23,679 --> 00:10:26,080 Speaker 1: the best part of this I mean Bauer as as 189 00:10:26,160 --> 00:10:28,840 Speaker 1: you heard, and if you if you missed that edition 190 00:10:28,960 --> 00:10:31,160 Speaker 1: of this show, you've got to go back and listen 191 00:10:31,200 --> 00:10:33,600 Speaker 1: to it because you get a sense of this guy 192 00:10:34,360 --> 00:10:38,920 Speaker 1: as someone who is just thinking about his brand, his business, 193 00:10:39,520 --> 00:10:44,000 Speaker 1: data and analytics and to your point about libations. Basically, 194 00:10:44,160 --> 00:10:48,240 Speaker 1: he's gotten into this Twitter conversation with Budweiser that basically 195 00:10:48,280 --> 00:10:52,120 Speaker 1: says if he reaches a certain level of strikeouts, they 196 00:10:52,160 --> 00:10:56,840 Speaker 1: are going to put out a limited addition. Budweiser can 197 00:10:57,200 --> 00:10:59,840 Speaker 1: in his honor and listen. It doesn't get any better 198 00:10:59,880 --> 00:11:01,760 Speaker 1: than that if you're an athlete, right, Well, was not 199 00:11:02,240 --> 00:11:04,679 Speaker 1: what was I think it was, what fourteen strikeouts over 200 00:11:04,760 --> 00:11:09,640 Speaker 1: two games? Well they got nine strikeouts, uh in one game, 201 00:11:10,080 --> 00:11:12,680 Speaker 1: and he just needs that five. I didn't think he 202 00:11:12,720 --> 00:11:15,920 Speaker 1: was going to get it, but he might get this now. Well, 203 00:11:16,000 --> 00:11:19,640 Speaker 1: we're speaking on a Thursday, and last night, the same 204 00:11:19,760 --> 00:11:24,440 Speaker 1: day that he basically declined, probably smartly to where these 205 00:11:24,480 --> 00:11:27,040 Speaker 1: free Joe Kelly cleats that he had designed and put 206 00:11:27,040 --> 00:11:29,720 Speaker 1: out on Twitter, he went out and threw a one 207 00:11:30,080 --> 00:11:34,200 Speaker 1: hitter and and won the back half of a double 208 00:11:34,240 --> 00:11:36,800 Speaker 1: header for the Red So that's the best thing about 209 00:11:36,880 --> 00:11:39,600 Speaker 1: him to me is that he's got a mouth on him, 210 00:11:39,720 --> 00:11:42,880 Speaker 1: and certainly a virtual mouth on him. But listen, when 211 00:11:42,920 --> 00:11:45,679 Speaker 1: he gets on the mound, it's put up or shut up, 212 00:11:45,840 --> 00:11:49,040 Speaker 1: and everybody else has to shut up. Just saying, by 213 00:11:49,080 --> 00:11:51,679 Speaker 1: the way, before we I know we were short and 214 00:11:51,720 --> 00:11:55,320 Speaker 1: I gotta lock out. But Kelly is on the injured 215 00:11:55,360 --> 00:11:58,360 Speaker 1: reserve list. Injured list, but he's going to have to 216 00:11:58,360 --> 00:12:00,560 Speaker 1: serve a five game suspension when he comes off the 217 00:12:00,600 --> 00:12:05,800 Speaker 1: list because it was initially eight games. Apparently. The reliever 218 00:12:05,960 --> 00:12:10,640 Speaker 1: through at Astro's third basement Alex Bregman and shortstop Carlos 219 00:12:10,720 --> 00:12:15,319 Speaker 1: Correa on July twenty nine. Gee, I don't know why, 220 00:12:14,840 --> 00:12:19,719 Speaker 1: but let's just say there's some hard feelings. I'll leave 221 00:12:19,760 --> 00:12:22,679 Speaker 1: it at that. There is and but there's also a 222 00:12:22,679 --> 00:12:26,640 Speaker 1: lot of merch available on Trevor Bauers website if you 223 00:12:26,679 --> 00:12:31,719 Speaker 1: want to support the legendary Joe Kelly. No relation to me. Now, 224 00:12:31,840 --> 00:12:34,600 Speaker 1: let's get to this week's interview with Retro Fitness CEO 225 00:12:34,800 --> 00:12:38,160 Speaker 1: Andrew Alfano. Andrew, great to have you on the show. 226 00:12:38,400 --> 00:12:41,000 Speaker 1: Thank you very much for having me. I appreciate it. So, Andrew, 227 00:12:41,280 --> 00:12:43,600 Speaker 1: let's talk about the news of the day, which is 228 00:12:43,880 --> 00:12:47,040 Speaker 1: Jim's finally here in the New York area at least 229 00:12:47,160 --> 00:12:51,160 Speaker 1: reopening at reduced capacity. What do you make of it? 230 00:12:51,240 --> 00:12:54,360 Speaker 1: What do you make of this timeline that we've been on. 231 00:12:54,720 --> 00:12:57,400 Speaker 1: Is it too soon, too late? How do you describe it? 232 00:12:57,600 --> 00:13:01,760 Speaker 1: Today is day and fifty seven. If you could imagine 233 00:13:01,920 --> 00:13:04,840 Speaker 1: that health clubs have been closed in New York and 234 00:13:04,880 --> 00:13:08,400 Speaker 1: New Jersey. The disappointing part I would say is that 235 00:13:08,440 --> 00:13:12,160 Speaker 1: the federal government had originally put us in Phase one, 236 00:13:12,520 --> 00:13:17,280 Speaker 1: recognizing health clubs, exercise and fitness as being essential. So 237 00:13:17,600 --> 00:13:20,960 Speaker 1: we're very pleased that we finally have the opportunity given 238 00:13:21,000 --> 00:13:23,760 Speaker 1: the fact that the high majority of health clubs are 239 00:13:23,800 --> 00:13:27,960 Speaker 1: individually owned and operated, and certainly Retro Fitness is a 240 00:13:29,160 --> 00:13:33,160 Speaker 1: franchised organization. So every one of our clubs is in 241 00:13:33,240 --> 00:13:36,480 Speaker 1: fact owned by a small business owner. So a hundred 242 00:13:36,480 --> 00:13:39,800 Speaker 1: and fifty seven days of no revenue UM at the 243 00:13:39,840 --> 00:13:42,760 Speaker 1: time couldn't come soon enough. Obviously, I like to expand 244 00:13:42,760 --> 00:13:45,079 Speaker 1: on that, because, as you said, the franchise e s, 245 00:13:46,080 --> 00:13:48,959 Speaker 1: they were kind of taking it on the chin. Has 246 00:13:49,000 --> 00:13:52,199 Speaker 1: there been any kind of assistance provided to any of 247 00:13:52,240 --> 00:13:55,760 Speaker 1: the franchise e s. Unfortunately no. I can share what 248 00:13:55,880 --> 00:13:59,520 Speaker 1: we have done as a franchise or back on March twelve, 249 00:14:00,400 --> 00:14:03,439 Speaker 1: I put out an internal p s A to our 250 00:14:03,920 --> 00:14:07,640 Speaker 1: franchise community and shared with them. You know, as as 251 00:14:07,679 --> 00:14:10,560 Speaker 1: this was evolving, we hadn't gone to a mandatory close 252 00:14:10,679 --> 00:14:13,599 Speaker 1: as of yet, but there were certainly markets around the 253 00:14:13,640 --> 00:14:18,360 Speaker 1: country that were quote unquote highly recommending closures. So UM 254 00:14:18,400 --> 00:14:20,840 Speaker 1: I got in front of that myself and the executive 255 00:14:20,840 --> 00:14:23,120 Speaker 1: team and share that if in fact you were to 256 00:14:23,200 --> 00:14:27,080 Speaker 1: move to a mandatory close as a good franchise or 257 00:14:27,120 --> 00:14:28,720 Speaker 1: we were going to go through this together, we're gonna 258 00:14:28,760 --> 00:14:31,680 Speaker 1: go through this with you. And we stayed back in 259 00:14:31,800 --> 00:14:35,560 Speaker 1: March that we would wave, not defer. We would wave 260 00:14:35,760 --> 00:14:39,840 Speaker 1: all royalties, all technology fees, all add fund fees. And 261 00:14:39,880 --> 00:14:42,440 Speaker 1: we went one step further to say, while you're still open, 262 00:14:42,880 --> 00:14:45,640 Speaker 1: stop spending. Stop spending your marketing dollars will take care 263 00:14:45,680 --> 00:14:49,160 Speaker 1: of that for you, UM, because we recognize for franchisees 264 00:14:49,200 --> 00:14:52,000 Speaker 1: and small business owners, cash is king, and what we 265 00:14:52,040 --> 00:14:54,280 Speaker 1: wanted to do is help them preserve as much as 266 00:14:54,320 --> 00:14:57,720 Speaker 1: they could at the onset, UH, knowing we were going 267 00:14:57,760 --> 00:15:01,160 Speaker 1: to need all guns blazing coming out of this UM. 268 00:15:01,160 --> 00:15:03,960 Speaker 1: But other than what the franchise or has done for 269 00:15:04,200 --> 00:15:07,720 Speaker 1: small business owners UH day hundred and fifty seven, there's 270 00:15:07,720 --> 00:15:11,120 Speaker 1: been zero guidance as to why they've needed to stay closed. 271 00:15:11,120 --> 00:15:14,680 Speaker 1: There's been no supporting data, and more specifically to your question, 272 00:15:15,000 --> 00:15:18,400 Speaker 1: even worse, there's been zero financial relief for these small 273 00:15:18,440 --> 00:15:21,600 Speaker 1: business owners. Andrew, there's a lot of hurdles to opening 274 00:15:21,680 --> 00:15:26,960 Speaker 1: up on Monday, UM capacity mass must be worn of 275 00:15:27,320 --> 00:15:33,680 Speaker 1: new ventilation UM protocols and the big word here inspections. 276 00:15:33,840 --> 00:15:37,080 Speaker 1: Which of these hurdles is the highest hurdle for for 277 00:15:37,160 --> 00:15:39,480 Speaker 1: you and your franchise e s to to get over 278 00:15:39,880 --> 00:15:41,920 Speaker 1: right now? I would say it's the inspections. Again, we 279 00:15:41,920 --> 00:15:45,400 Speaker 1: were very pleased that Governor Cuomo announced that the gym's 280 00:15:45,440 --> 00:15:50,520 Speaker 1: could open on August. Unfortunately, given the relationship he has 281 00:15:50,520 --> 00:15:53,560 Speaker 1: with the Mayor of New York City. UM, the mayor 282 00:15:53,800 --> 00:15:57,320 Speaker 1: is actually taking it one step further, not allowing As 283 00:15:57,320 --> 00:15:59,480 Speaker 1: of right now, what we understand is he's not recognizing 284 00:15:59,520 --> 00:16:03,720 Speaker 1: the August and said that he's prioritizing the inspections, and 285 00:16:04,080 --> 00:16:07,000 Speaker 1: rightfully so, by the way, they have limited resources. This 286 00:16:07,080 --> 00:16:11,720 Speaker 1: is not a disparaging comment. Rather, Mayor Deblasio has said 287 00:16:11,800 --> 00:16:15,680 Speaker 1: that he will be prioritizing inspections for schools, UH and 288 00:16:15,680 --> 00:16:19,320 Speaker 1: and other industry and gym's will come after that. So, 289 00:16:19,520 --> 00:16:22,520 Speaker 1: as of right now, it's our understanding that the five 290 00:16:22,560 --> 00:16:25,360 Speaker 1: boroughs health clubs will not get the green light. We're 291 00:16:25,360 --> 00:16:28,760 Speaker 1: currently working very closely with the state, which is something 292 00:16:28,800 --> 00:16:31,360 Speaker 1: that we've been doing in both New Jersey and New York. 293 00:16:31,920 --> 00:16:34,400 Speaker 1: We've had a great relationship with them since the beginning, 294 00:16:34,880 --> 00:16:36,880 Speaker 1: So going back and forth with the state, going back 295 00:16:36,880 --> 00:16:39,040 Speaker 1: and forth with the city, really just trying to understand 296 00:16:39,040 --> 00:16:41,560 Speaker 1: how we get past it. UH. The inspections right now 297 00:16:41,600 --> 00:16:45,200 Speaker 1: seemed to be UM the bigger hurdle UM, but honestly, 298 00:16:45,280 --> 00:16:49,880 Speaker 1: the thirty three percent UM capacity on the surface, obviously 299 00:16:49,920 --> 00:16:52,760 Speaker 1: we would like to see more. Again, forty seven other 300 00:16:52,840 --> 00:16:55,280 Speaker 1: states in the country have figured out how to get 301 00:16:55,320 --> 00:16:59,200 Speaker 1: health clubs open safely in some capacity. Uh. The good 302 00:16:59,240 --> 00:17:01,920 Speaker 1: news and or good news with the thirty three percent 303 00:17:02,000 --> 00:17:05,800 Speaker 1: capacity is because people are working from home uh and 304 00:17:06,119 --> 00:17:08,600 Speaker 1: or perhaps not working at all, which which would be 305 00:17:08,680 --> 00:17:12,080 Speaker 1: highly unfortunate. We're not seeing the surge in our in 306 00:17:12,119 --> 00:17:15,239 Speaker 1: our clubs outside of New York and New Jersey. In 307 00:17:15,280 --> 00:17:18,320 Speaker 1: those evening day parts or those early morning day parts, 308 00:17:18,640 --> 00:17:20,960 Speaker 1: we're seeing people come to the gym's um, you know, 309 00:17:21,000 --> 00:17:23,080 Speaker 1: ten in the morning, eleven in the morning, one, three 310 00:17:23,160 --> 00:17:26,159 Speaker 1: in the afternoon during day parts we wouldn't normally see it. 311 00:17:26,240 --> 00:17:30,120 Speaker 1: So we're still seeing very strong activity. A matter of fact, 312 00:17:30,400 --> 00:17:32,600 Speaker 1: we are up in every one of the other states 313 00:17:32,640 --> 00:17:35,560 Speaker 1: that we operate in, and we operate in twelve other 314 00:17:35,640 --> 00:17:39,159 Speaker 1: states around the country, so revenue is up. Uh. The 315 00:17:39,320 --> 00:17:41,560 Speaker 1: joints are up, so we still have more people joining, 316 00:17:41,600 --> 00:17:43,879 Speaker 1: and the check ins are are up in in a 317 00:17:43,920 --> 00:17:47,040 Speaker 1: big way. So on the surface it sounds like the 318 00:17:47,080 --> 00:17:50,160 Speaker 1: occupancy might be a hindrance. Again, we like to see 319 00:17:50,240 --> 00:17:52,360 Speaker 1: more and we hope to get to more sooner rather 320 00:17:52,400 --> 00:17:55,120 Speaker 1: than later. But because it's stinned out throughout the day, 321 00:17:55,400 --> 00:17:56,920 Speaker 1: it's not as big of a hurdle as you would 322 00:17:56,960 --> 00:18:01,560 Speaker 1: think the next big question is to pically around masks. 323 00:18:01,640 --> 00:18:04,440 Speaker 1: And we have offered right from the onset to both 324 00:18:04,520 --> 00:18:07,720 Speaker 1: New Jersey and New York that we would Uh. There's 325 00:18:07,760 --> 00:18:10,800 Speaker 1: no question that we would go with a percent mask 326 00:18:11,160 --> 00:18:14,560 Speaker 1: the entire time. Uh. And we had already implemented a 327 00:18:14,640 --> 00:18:18,679 Speaker 1: number of industry across the industry, not just retrofitness, but 328 00:18:18,720 --> 00:18:21,600 Speaker 1: working with other industry leaders, a number of best in 329 00:18:21,680 --> 00:18:26,919 Speaker 1: class um, you know, sanitation practices, temperature checks, etcetera. To 330 00:18:26,920 --> 00:18:29,960 Speaker 1: make sure that we were keeping h the members health 331 00:18:30,040 --> 00:18:32,640 Speaker 1: and safety a top priority as well as employees. So 332 00:18:32,800 --> 00:18:36,840 Speaker 1: at this moment, Andrew sort of maybe setting aside for 333 00:18:36,880 --> 00:18:40,720 Speaker 1: a minute whatever was lost in these under fifty plus days. 334 00:18:41,280 --> 00:18:45,920 Speaker 1: Do the economics work for a franchise given the numbers 335 00:18:45,920 --> 00:18:49,240 Speaker 1: that you're seeing so far, to remain open and viable 336 00:18:49,359 --> 00:18:52,520 Speaker 1: at this lower occupancy rate. Yeah, that's a great question. 337 00:18:52,760 --> 00:18:56,960 Speaker 1: It's a little twofold because there hasn't been any financial relief. 338 00:18:57,600 --> 00:19:00,800 Speaker 1: What happened is the day they open, here come the landlords, 339 00:19:00,880 --> 00:19:04,320 Speaker 1: Here come the banks, Here come the vendors, and everything 340 00:19:04,359 --> 00:19:06,240 Speaker 1: that has been building up into this point in time. 341 00:19:06,600 --> 00:19:08,919 Speaker 1: So it's just not as simple as you throw the 342 00:19:08,920 --> 00:19:11,080 Speaker 1: switch and you open, and it is is it a 343 00:19:11,200 --> 00:19:14,119 Speaker 1: viable business model? It is absolutely a viable to the 344 00:19:14,160 --> 00:19:17,480 Speaker 1: business model and the amount of investors and new franchise 345 00:19:17,520 --> 00:19:21,560 Speaker 1: ees that see fitness as a tremendous opportunity going forward, 346 00:19:21,600 --> 00:19:26,000 Speaker 1: that's one conversation. But for folks that are currently or 347 00:19:26,080 --> 00:19:29,200 Speaker 1: have gone through the pandemic, the other challenge is the 348 00:19:29,280 --> 00:19:32,119 Speaker 1: catch up. You know, how do we keep the landlords 349 00:19:32,240 --> 00:19:35,760 Speaker 1: at bay? Uh. Some have been very cooperative to their credit, 350 00:19:35,800 --> 00:19:37,639 Speaker 1: but the reality of it is they're running a business 351 00:19:37,640 --> 00:19:41,200 Speaker 1: as well, and you know they have UM certainly those 352 00:19:41,200 --> 00:19:44,600 Speaker 1: they need to pay. In too many instances, we've had 353 00:19:44,720 --> 00:19:49,320 Speaker 1: landlords really strong arming far too many from from my liking, 354 00:19:49,880 --> 00:19:52,480 Speaker 1: through the pandemic. So when we got to get them open, 355 00:19:53,160 --> 00:19:55,960 Speaker 1: we've done our part as an organization UH to be 356 00:19:56,080 --> 00:20:00,280 Speaker 1: very franchise e friendly to help them procure and you 357 00:20:00,400 --> 00:20:02,840 Speaker 1: hold on to cash. But the second part of it 358 00:20:02,960 --> 00:20:05,399 Speaker 1: is um, you know, they got to get going. But 359 00:20:05,359 --> 00:20:07,840 Speaker 1: the model is there. The model does work, UH. And 360 00:20:07,880 --> 00:20:12,200 Speaker 1: again we've had a ton of interest from investors from 361 00:20:12,240 --> 00:20:17,320 Speaker 1: a area development, territory development perspective as well as individual franchisees. 362 00:20:17,960 --> 00:20:20,960 Speaker 1: Going back to I would say the downturn where there 363 00:20:21,080 --> 00:20:26,080 Speaker 1: was high unemployment, franchising and people wanting to or needing, 364 00:20:26,119 --> 00:20:30,080 Speaker 1: not wanting, but wanting to buy themselves a job. We're 365 00:20:30,160 --> 00:20:33,679 Speaker 1: seeing a lot of interest in fitness given some disruptions 366 00:20:33,680 --> 00:20:35,880 Speaker 1: some of the other industries. All right, so Andrew, let's 367 00:20:35,880 --> 00:20:38,120 Speaker 1: go a little retro in this conversation. Take us back 368 00:20:38,160 --> 00:20:43,400 Speaker 1: to the beginning. Help us understand the concept of retro fitness. Sure. Uh, well, 369 00:20:43,400 --> 00:20:46,400 Speaker 1: we are celebrating, very proud to be celebrating our fifteen 370 00:20:46,480 --> 00:20:50,440 Speaker 1: year anniversary. We were founded in New Jersey, and one 371 00:20:50,440 --> 00:20:53,080 Speaker 1: of the points of differentiation I believe that we have 372 00:20:53,440 --> 00:20:56,879 Speaker 1: is that every town that we went to through the 373 00:20:56,960 --> 00:21:01,120 Speaker 1: years is we really became the hometown gym. And certainly 374 00:21:01,440 --> 00:21:04,600 Speaker 1: being founded in New Jersey, that is our largest market. 375 00:21:05,000 --> 00:21:08,960 Speaker 1: And you will see the the individual franchise e, small 376 00:21:09,000 --> 00:21:11,760 Speaker 1: business owner there in the club. The high majority of 377 00:21:11,760 --> 00:21:14,480 Speaker 1: our clubs in New York and New Jersey are um 378 00:21:14,520 --> 00:21:18,679 Speaker 1: individually owned and operated with the franchise e operating in 379 00:21:18,720 --> 00:21:22,359 Speaker 1: the in the club. So we build a community withinside 380 00:21:22,400 --> 00:21:25,280 Speaker 1: the four walls of our clubs. But at the same time, 381 00:21:26,040 --> 00:21:31,040 Speaker 1: because these folks are from those communities, were also becoming 382 00:21:31,320 --> 00:21:33,560 Speaker 1: or have become a fabric of the community that they 383 00:21:33,600 --> 00:21:37,120 Speaker 1: operate in. So these franchisees live in those towns, they 384 00:21:37,119 --> 00:21:39,040 Speaker 1: go to the same kids, go to the same schools, 385 00:21:39,080 --> 00:21:41,440 Speaker 1: they stand in the same line at the Delhi Uh. 386 00:21:41,600 --> 00:21:44,879 Speaker 1: It's really great. And we play in what's called the 387 00:21:44,960 --> 00:21:49,399 Speaker 1: high value, low price sector of fitness. And uh, you 388 00:21:49,440 --> 00:21:52,960 Speaker 1: know myself, I'm not from the fitness industry. I joined 389 00:21:52,960 --> 00:21:56,479 Speaker 1: Retro Fitness about fifteen months ago. And when I was 390 00:21:56,520 --> 00:21:59,840 Speaker 1: doing my diligence on the organization, you know, initially I 391 00:21:59,880 --> 00:22:03,320 Speaker 1: was thinking, geez, why do I want to get into fitness? 392 00:22:03,320 --> 00:22:06,359 Speaker 1: Is such a crowded space. And you know, when you 393 00:22:06,440 --> 00:22:09,760 Speaker 1: step back, uh and and really, you know, peel back 394 00:22:09,800 --> 00:22:12,800 Speaker 1: the youngion for lack of better analogy, it's really divided 395 00:22:12,840 --> 00:22:16,639 Speaker 1: into very distinct categories UM. And you certainly you have 396 00:22:16,680 --> 00:22:19,719 Speaker 1: the boutiques, which is the arms, theories, and pilates and 397 00:22:19,720 --> 00:22:22,640 Speaker 1: and soul cycles of the world. And that's one sector. 398 00:22:23,119 --> 00:22:26,720 Speaker 1: And in many ways they're not competition for us. Many 399 00:22:26,760 --> 00:22:30,240 Speaker 1: of those UM members of many of their members actually 400 00:22:30,280 --> 00:22:33,360 Speaker 1: also have a gym membership. Uh So in many instances, 401 00:22:33,400 --> 00:22:36,119 Speaker 1: we actually like those guys. Uh. Then you have the 402 00:22:36,240 --> 00:22:39,240 Speaker 1: high value, high price, which are the equaloxes is the 403 00:22:39,280 --> 00:22:43,439 Speaker 1: country club Jim's, if you will. The third sector is 404 00:22:43,840 --> 00:22:47,359 Speaker 1: the big box guys, the l A fitness uh and whatnot. 405 00:22:47,400 --> 00:22:51,320 Speaker 1: They're the forty fifties, sixty thousand square foot health clubs. 406 00:22:51,840 --> 00:22:53,879 Speaker 1: And then you have the fourth sector, which is US, 407 00:22:54,040 --> 00:22:56,560 Speaker 1: which is high value, low price. We are the third 408 00:22:56,720 --> 00:23:01,520 Speaker 1: largest in the country, but very quickly, uh, you dissect 409 00:23:01,560 --> 00:23:04,480 Speaker 1: that and you see it's not as big or or 410 00:23:04,520 --> 00:23:08,000 Speaker 1: as um congested as one may think. So we like 411 00:23:08,080 --> 00:23:12,159 Speaker 1: our positioning in the high value, low price space. We 412 00:23:12,200 --> 00:23:14,720 Speaker 1: have two price points, two points of entry. One is 413 00:23:14,880 --> 00:23:20,280 Speaker 1: the core membership at and one is our ultimate and 414 00:23:20,680 --> 00:23:24,400 Speaker 1: we go much further than machine against machine or cardio 415 00:23:24,440 --> 00:23:28,600 Speaker 1: against cardio. We really have expanded over the course of 416 00:23:28,600 --> 00:23:32,800 Speaker 1: the last fifteen months a whole new transformational journey and 417 00:23:32,840 --> 00:23:36,840 Speaker 1: a new strategic vision. So the club is certainly the 418 00:23:36,880 --> 00:23:39,840 Speaker 1: brick and mortar and our core business, but as we've 419 00:23:39,880 --> 00:23:43,359 Speaker 1: expanded the health and wellness platform, and in many ways, 420 00:23:43,800 --> 00:23:48,160 Speaker 1: the pandemic has complemented the journey that we're on, as 421 00:23:48,200 --> 00:23:52,040 Speaker 1: we've created a new technology roadmap. But we're very focused 422 00:23:52,160 --> 00:23:57,280 Speaker 1: on nutrition. We have online cooking classes very focused on 423 00:23:57,359 --> 00:24:00,800 Speaker 1: mental health, which you know, is certainly a you know, 424 00:24:01,080 --> 00:24:05,080 Speaker 1: very topical these days with the pandemic. Um May was 425 00:24:05,560 --> 00:24:09,000 Speaker 1: Mental Health Awareness Month and it was originally founded in 426 00:24:09,080 --> 00:24:14,359 Speaker 1: nineteen nine, and mental health really has not come anywhere 427 00:24:14,400 --> 00:24:17,600 Speaker 1: near made the strides it's needed to UH. And then 428 00:24:17,640 --> 00:24:21,960 Speaker 1: from a technology roadmap not coming from the industry, I 429 00:24:22,040 --> 00:24:25,400 Speaker 1: have tapped into peers of mine and networked with other 430 00:24:25,480 --> 00:24:29,720 Speaker 1: best in class consumer engaging apps like Starbucks and Chipotle 431 00:24:29,840 --> 00:24:34,920 Speaker 1: in Subway or Duncan, very different than the quintessential fitness apps. UH. 432 00:24:34,960 --> 00:24:37,200 Speaker 1: And we're going to continue to evolve, and I think 433 00:24:37,200 --> 00:24:39,720 Speaker 1: that's going to be a real point of differentiation for 434 00:24:39,840 --> 00:24:42,520 Speaker 1: us from others in the pack as we really look 435 00:24:42,560 --> 00:24:46,080 Speaker 1: at this as consumer engagement with a brand and not 436 00:24:46,200 --> 00:24:48,680 Speaker 1: just how to get members to come to your club. 437 00:24:49,040 --> 00:24:52,359 Speaker 1: Where do you see the future of gym's unfortunately in 438 00:24:52,359 --> 00:24:55,360 Speaker 1: a COVID nineteen world. Where where do you see you going? Well, 439 00:24:55,520 --> 00:24:58,400 Speaker 1: I think at the end of the day, UM, I'll 440 00:24:58,440 --> 00:24:59,879 Speaker 1: say it this way because I want to be is 441 00:25:00,000 --> 00:25:03,560 Speaker 1: as respectful as possible. You really have to deal and 442 00:25:03,640 --> 00:25:06,439 Speaker 1: understand the pandemic and COVID, UH, you know, with the 443 00:25:06,480 --> 00:25:10,040 Speaker 1: fragility and sensitivity at warrants but the reality of it is, 444 00:25:10,040 --> 00:25:12,479 Speaker 1: if you were to strip away the crisis component of 445 00:25:12,520 --> 00:25:17,800 Speaker 1: it and the unfortunate depths that were associated UH for fitness, UH, 446 00:25:17,960 --> 00:25:20,800 Speaker 1: this may have been one of the best commercials we 447 00:25:20,880 --> 00:25:23,560 Speaker 1: ever could have asked for. Because if you're not going 448 00:25:23,600 --> 00:25:28,199 Speaker 1: to take getting healthy seriously now after the pandemic, UH, 449 00:25:28,400 --> 00:25:31,320 Speaker 1: you you may never take it seriously. So I do 450 00:25:31,440 --> 00:25:34,760 Speaker 1: think they're you know, the at home solutions will always 451 00:25:35,400 --> 00:25:37,280 Speaker 1: will always be a place for that. But at the 452 00:25:37,359 --> 00:25:40,199 Speaker 1: end of the day, people need people. People want a 453 00:25:40,240 --> 00:25:43,560 Speaker 1: sense of community, people want a sense of belonging, and 454 00:25:43,760 --> 00:25:46,080 Speaker 1: they want to go back to their health clubs. And 455 00:25:46,359 --> 00:25:49,520 Speaker 1: we can share very strong data UH in all of 456 00:25:49,560 --> 00:25:52,600 Speaker 1: our other markets that we operate that people are coming 457 00:25:52,600 --> 00:25:55,159 Speaker 1: back in droves and a matter of fact, our clubs 458 00:25:55,160 --> 00:25:58,760 Speaker 1: in Pennsylvania we're seeing over two thousand members a week 459 00:25:59,240 --> 00:26:01,800 Speaker 1: coming across us the state line from New Jersey where 460 00:26:01,800 --> 00:26:04,640 Speaker 1: they can't work out, wanting to get back to their 461 00:26:04,640 --> 00:26:07,719 Speaker 1: health club into their workout routine. So I think the 462 00:26:07,720 --> 00:26:10,520 Speaker 1: health club will continue to evolve. But at the end 463 00:26:10,560 --> 00:26:12,720 Speaker 1: of the day, people need people, and people want that 464 00:26:12,800 --> 00:26:16,080 Speaker 1: sense of community. It's a point of inspiration and it 465 00:26:16,080 --> 00:26:18,920 Speaker 1: gets them motivated Andrew. I hear alarming stories from a 466 00:26:18,920 --> 00:26:21,520 Speaker 1: lot of my friends with gym members that during this pandemic, 467 00:26:21,560 --> 00:26:23,800 Speaker 1: while the gym's was shut down, that they kept having 468 00:26:23,840 --> 00:26:27,280 Speaker 1: their checking accounts debited for membership fees. How did you 469 00:26:27,359 --> 00:26:31,120 Speaker 1: handle that with with the members throughout your all their franchises. Yeah, 470 00:26:31,119 --> 00:26:34,639 Speaker 1: we we heard very similar uh, and I would share UM. 471 00:26:34,680 --> 00:26:37,479 Speaker 1: You know, the character of an organization and the character 472 00:26:37,520 --> 00:26:41,480 Speaker 1: of leadership, while it doesn't get created during crisis, it 473 00:26:41,560 --> 00:26:45,439 Speaker 1: certainly gets further defined and accentuated. So very similar to 474 00:26:45,480 --> 00:26:49,159 Speaker 1: what we did for our franchisees in deferring I'm sorry, 475 00:26:49,200 --> 00:26:52,920 Speaker 1: not differing, but waving all of their costs, we did 476 00:26:52,920 --> 00:26:55,800 Speaker 1: the same thing for our members. I know that some 477 00:26:55,880 --> 00:26:58,879 Speaker 1: other organizations weren't in the same position, but on the 478 00:26:58,920 --> 00:27:01,919 Speaker 1: same day that we UM made the announcement to our 479 00:27:01,960 --> 00:27:06,640 Speaker 1: franchise ease, we created a no stress, no call freeze 480 00:27:07,080 --> 00:27:10,520 Speaker 1: for all of our members across the system. We recognize 481 00:27:10,640 --> 00:27:14,400 Speaker 1: very quickly that there were a lot of personal situations 482 00:27:14,800 --> 00:27:18,080 Speaker 1: members were going through. People were losing jobs, and I 483 00:27:18,119 --> 00:27:20,560 Speaker 1: think if you just use the filter of air on 484 00:27:20,600 --> 00:27:23,800 Speaker 1: the side of people, just use that as your first filter, 485 00:27:24,400 --> 00:27:27,000 Speaker 1: how wrong could you really be. And that is the filter. 486 00:27:27,160 --> 00:27:30,040 Speaker 1: From the very first that we heard about the pandemic 487 00:27:30,600 --> 00:27:32,760 Speaker 1: coming into play, we used the filter of air on 488 00:27:32,800 --> 00:27:36,119 Speaker 1: the side of people. And if in fact you do that, UM, 489 00:27:36,240 --> 00:27:38,560 Speaker 1: if there are mistakes to be made, anything else can 490 00:27:38,560 --> 00:27:40,840 Speaker 1: be fixed, but first and foremost air on the side 491 00:27:40,840 --> 00:27:44,800 Speaker 1: of people. We have maintained a very good relationship with 492 00:27:44,840 --> 00:27:48,199 Speaker 1: our members and with our franchisees because of that. But 493 00:27:48,320 --> 00:27:52,080 Speaker 1: we have UM maintained the freeze, and as clubs have 494 00:27:52,160 --> 00:27:55,760 Speaker 1: opened up, we've also continued to allow members to free 495 00:27:55,840 --> 00:27:59,359 Speaker 1: So in twelve other states where we're operating, we recognize 496 00:27:59,400 --> 00:28:02,639 Speaker 1: that some members is whether or not UM ready to 497 00:28:02,680 --> 00:28:05,119 Speaker 1: come back to a health club for whatever the reason. 498 00:28:05,200 --> 00:28:08,880 Speaker 1: Maybe UH we're allowing them to no cost, no call. 499 00:28:08,960 --> 00:28:13,480 Speaker 1: We don't need uh letters from Congress to uh substantiate 500 00:28:13,520 --> 00:28:15,639 Speaker 1: why they need to freeze their membership. It's it's very simple. 501 00:28:15,720 --> 00:28:17,680 Speaker 1: Just let us know, and we're letting them freeze. And 502 00:28:17,760 --> 00:28:20,240 Speaker 1: definitely at this point, So Andrew, you were telling us 503 00:28:20,240 --> 00:28:24,200 Speaker 1: a little bit earlier about your relatively short tenure here, 504 00:28:24,320 --> 00:28:26,680 Speaker 1: what a fifteen months it's been since you took over. 505 00:28:26,760 --> 00:28:31,560 Speaker 1: I'm sure this is not the exact environment that you anticipated. 506 00:28:31,880 --> 00:28:35,080 Speaker 1: But I do wonder just sort of going down a level, 507 00:28:35,760 --> 00:28:39,840 Speaker 1: what changed in your proverbial road map as you think 508 00:28:39,880 --> 00:28:43,600 Speaker 1: about either geographic expansion, as you think about new tools, 509 00:28:43,800 --> 00:28:46,680 Speaker 1: as you think about sort of the business going forward, 510 00:28:46,720 --> 00:28:49,640 Speaker 1: sort of integrating all of those learnings that you mentioned 511 00:28:50,000 --> 00:28:53,800 Speaker 1: from the various consumer platforms, but also taking into account 512 00:28:53,920 --> 00:28:57,720 Speaker 1: that our lives are work where we live, of where 513 00:28:57,760 --> 00:29:01,120 Speaker 1: we work. It's all going to be different potentially going forward, 514 00:29:01,160 --> 00:29:05,440 Speaker 1: maybe dramatically different. Dramatically different, I think is an understatement. 515 00:29:05,480 --> 00:29:09,440 Speaker 1: I completely agree. Uh. In many ways, timing is everything. 516 00:29:10,160 --> 00:29:13,880 Speaker 1: I would share that if this pandemic had hit, say 517 00:29:14,160 --> 00:29:16,680 Speaker 1: twelve months ago, I'm not sure that we'd be in 518 00:29:16,680 --> 00:29:19,280 Speaker 1: the same position to have the conversations that we're having. 519 00:29:19,960 --> 00:29:24,600 Speaker 1: But in putting forth a transformational journey, a new strategic 520 00:29:24,720 --> 00:29:28,320 Speaker 1: vision with our new leadership team, there are a lot 521 00:29:28,360 --> 00:29:33,960 Speaker 1: of very quick decisions that we implemented, tactics if you will, 522 00:29:34,160 --> 00:29:38,000 Speaker 1: that position the company. Uh not only um, you know, 523 00:29:38,200 --> 00:29:43,440 Speaker 1: to continue to excel, but we wound up having in January, Uh, 524 00:29:43,520 --> 00:29:46,760 Speaker 1: not just a good January over January, we had the 525 00:29:46,800 --> 00:29:49,400 Speaker 1: best January in the history of the company. As a 526 00:29:49,480 --> 00:29:52,240 Speaker 1: result of some of the strategic moves that we've made, 527 00:29:52,720 --> 00:29:55,800 Speaker 1: and we ultimately we're having the best Q one in 528 00:29:55,840 --> 00:29:58,400 Speaker 1: the history of the company that we've ever had, and 529 00:29:58,440 --> 00:30:01,360 Speaker 1: it really positioned us quite l going into the pandemic. 530 00:30:01,440 --> 00:30:05,160 Speaker 1: So as luck would have it. UM Again, timing is everything, 531 00:30:05,480 --> 00:30:07,560 Speaker 1: a little luck on your side and that never hurts. 532 00:30:08,120 --> 00:30:11,640 Speaker 1: But as a result of having very strong revenue and 533 00:30:11,880 --> 00:30:15,080 Speaker 1: strong positioning, that's what afforded us the opportunity to do 534 00:30:15,120 --> 00:30:18,760 Speaker 1: the things that we did for our franchisees and for 535 00:30:19,160 --> 00:30:23,480 Speaker 1: our members. Uh. With that, we had put in and 536 00:30:23,600 --> 00:30:26,560 Speaker 1: put in place a new go to market strategy. And 537 00:30:26,600 --> 00:30:28,480 Speaker 1: if you were to ask me, you know, jeez, Andrew, 538 00:30:28,760 --> 00:30:30,440 Speaker 1: what what in fact do you do? I mean, well, 539 00:30:30,480 --> 00:30:33,320 Speaker 1: what made you come to you know, this industry? UM. 540 00:30:33,360 --> 00:30:38,720 Speaker 1: Given my my historic track record with UM Starbucks, which 541 00:30:38,760 --> 00:30:40,880 Speaker 1: is where I spent the majority of my my career 542 00:30:41,480 --> 00:30:46,160 Speaker 1: UM scaling business and building or readefining brand or really 543 00:30:46,160 --> 00:30:49,400 Speaker 1: the two things that I do, so we really see 544 00:30:49,440 --> 00:30:53,200 Speaker 1: this as a very unique opportunity to capitalize them. I 545 00:30:53,280 --> 00:30:56,680 Speaker 1: believe to be a lot of opportunity out there in 546 00:30:56,720 --> 00:31:00,720 Speaker 1: real estate. UH, there has been you know, UM UM 547 00:31:00,720 --> 00:31:03,960 Speaker 1: fitness organizations that have fallen to the wayside so I 548 00:31:04,360 --> 00:31:08,120 Speaker 1: liked our positioning back in Q one with a lot 549 00:31:08,160 --> 00:31:12,200 Speaker 1: of competition, but there have been some folks town Sports 550 00:31:12,600 --> 00:31:16,080 Speaker 1: twenty four hour, uh you know of claim bankruptcy, l 551 00:31:16,120 --> 00:31:20,040 Speaker 1: A fitness we're hearing is taking a pretty large portfolio haircut. 552 00:31:20,360 --> 00:31:23,840 Speaker 1: So we liked our positioning back then when it was 553 00:31:23,880 --> 00:31:27,360 Speaker 1: a little more crowded. We really like our positioning now 554 00:31:27,400 --> 00:31:29,520 Speaker 1: coming out of this knowing that some of the competition 555 00:31:30,040 --> 00:31:32,440 Speaker 1: and and unfortunately there are some mom and pops that 556 00:31:32,480 --> 00:31:35,320 Speaker 1: aren't making it back either. So we in Thatt fact, 557 00:31:35,360 --> 00:31:39,120 Speaker 1: we just signed an agreement with District Real Estate Advisors 558 00:31:39,680 --> 00:31:44,040 Speaker 1: out of Massachusetts. UM, we have an emerging market uh good, 559 00:31:44,240 --> 00:31:47,400 Speaker 1: you know strategy on some very specific places that we're 560 00:31:47,400 --> 00:31:49,160 Speaker 1: going to be going, and we also have an infilm 561 00:31:49,200 --> 00:31:52,920 Speaker 1: market strategy. So we like our positioning. We do agree 562 00:31:52,960 --> 00:31:54,880 Speaker 1: that things are going to be different, which is why 563 00:31:54,960 --> 00:31:58,560 Speaker 1: we're expanding the health and wellness platform beyond the brick 564 00:31:58,560 --> 00:32:01,720 Speaker 1: and mortar uh it East. For us, I'm not for 565 00:32:01,760 --> 00:32:04,560 Speaker 1: sure for some others, but for us, we only get 566 00:32:04,600 --> 00:32:08,520 Speaker 1: the average regular member and or super regular member to 567 00:32:08,720 --> 00:32:10,760 Speaker 1: the club three and a half to four and a 568 00:32:10,840 --> 00:32:13,320 Speaker 1: half hours a week. So when you think about that 569 00:32:13,520 --> 00:32:17,120 Speaker 1: and those that are really into health and wellness or fitness. 570 00:32:18,120 --> 00:32:21,040 Speaker 1: That lifestyle is occurring all the time, which is why 571 00:32:21,120 --> 00:32:25,840 Speaker 1: we have pivoted to the online classes. We are going 572 00:32:25,880 --> 00:32:29,600 Speaker 1: to have an at home solution. Uh, the cooking, the nutrition, 573 00:32:29,640 --> 00:32:32,800 Speaker 1: the mental health, much more, much bigger and broader than 574 00:32:32,880 --> 00:32:35,040 Speaker 1: just the brick and mortar. And again I think that's 575 00:32:35,040 --> 00:32:37,360 Speaker 1: going to create some separation between us and others. I 576 00:32:37,440 --> 00:32:39,520 Speaker 1: want to expand more. You were talking about that about 577 00:32:39,520 --> 00:32:44,640 Speaker 1: the real estate because of other gems who are having 578 00:32:45,160 --> 00:32:50,240 Speaker 1: their issues and have gone belly up unfortunately. Uh, you 579 00:32:50,280 --> 00:32:53,720 Speaker 1: guys have a different model, and you mentioned, if I 580 00:32:53,800 --> 00:32:57,560 Speaker 1: heard it right, that it is benefiting you in a 581 00:32:57,600 --> 00:33:01,920 Speaker 1: way and for lack of finding a better term of 582 00:33:02,000 --> 00:33:06,040 Speaker 1: this because either COVID nineteen or just simply they had 583 00:33:06,040 --> 00:33:08,920 Speaker 1: a different business model that didn't work. Can you expand 584 00:33:09,000 --> 00:33:13,920 Speaker 1: more about the advantages you guys have with your model 585 00:33:14,320 --> 00:33:18,320 Speaker 1: in getting the real estate? Sure? Thank you. So we 586 00:33:18,360 --> 00:33:24,360 Speaker 1: recognize that between retail outlets which were before the pandemic 587 00:33:24,560 --> 00:33:29,640 Speaker 1: being hindered by Amazon, the restaurant industry, which was also 588 00:33:29,680 --> 00:33:34,320 Speaker 1: another franchise friendly industry. Uh, they were going through their 589 00:33:34,320 --> 00:33:38,520 Speaker 1: own transformation. If you will, certainly with millennials who you know. 590 00:33:38,560 --> 00:33:40,960 Speaker 1: But whether it be the Uber eats, they want it now, 591 00:33:41,000 --> 00:33:43,920 Speaker 1: they want it from the farm. Um, they want you 592 00:33:43,920 --> 00:33:46,400 Speaker 1: to bring it to them. Uh. You know a lot 593 00:33:46,440 --> 00:33:49,880 Speaker 1: of industry that would typically be in the strip centers 594 00:33:49,960 --> 00:33:53,840 Speaker 1: that we have been operating in. Uh. It's it's really 595 00:33:53,880 --> 00:33:57,200 Speaker 1: gone through. It's not an inflection point. Said differently, our 596 00:33:57,360 --> 00:34:01,320 Speaker 1: average box size is a fifteen to eighteen thousand square footbox, 597 00:34:01,360 --> 00:34:04,280 Speaker 1: so we are not a free standing for six thousand 598 00:34:04,320 --> 00:34:08,960 Speaker 1: square footbox. Being a little smaller it allows us to 599 00:34:09,000 --> 00:34:12,239 Speaker 1: be more nimble and to have conversations with landlords that 600 00:34:12,320 --> 00:34:16,360 Speaker 1: may be looking to generate traffic back to a shopping 601 00:34:16,400 --> 00:34:20,560 Speaker 1: center that, um, you used to be very viable. So 602 00:34:20,800 --> 00:34:23,239 Speaker 1: we're having a lot of conversations. I will tell you 603 00:34:23,280 --> 00:34:27,799 Speaker 1: the inbound calls from private equity, family offices as well 604 00:34:27,840 --> 00:34:31,520 Speaker 1: as landlords recognizing that we're coming out of the pandemic 605 00:34:31,800 --> 00:34:35,080 Speaker 1: not only healthy, but we're ready to run and run hard. 606 00:34:35,640 --> 00:34:38,120 Speaker 1: And because we the way we were positioned going into 607 00:34:38,120 --> 00:34:42,400 Speaker 1: the pandemic, it's really affording us a very unique opportunity. Andrew, 608 00:34:42,440 --> 00:34:44,600 Speaker 1: I can only imagine the average costs for French I 609 00:34:44,640 --> 00:34:46,399 Speaker 1: sink it up and running. I can see a whole 610 00:34:46,440 --> 00:34:48,880 Speaker 1: bunch of vans lined up outside to get a carpenter. 611 00:34:49,040 --> 00:34:52,239 Speaker 1: You've got an electrician, you've got an h fact show, 612 00:34:52,280 --> 00:34:54,160 Speaker 1: and you might even have a storage person to move 613 00:34:54,239 --> 00:34:56,960 Speaker 1: some equipment in and out of all these things already 614 00:34:57,080 --> 00:34:59,320 Speaker 1: been started on the underway. And what is the average 615 00:34:59,320 --> 00:35:02,960 Speaker 1: cost for French sure? So the average costs were built out. 616 00:35:03,200 --> 00:35:07,520 Speaker 1: This is not a small uh cold Stone or Duncan. 617 00:35:08,000 --> 00:35:11,239 Speaker 1: These are, um, you know, a big investment. It's one 618 00:35:11,280 --> 00:35:14,439 Speaker 1: point five to one point seven million dollar build out. 619 00:35:14,640 --> 00:35:19,080 Speaker 1: UM franchise costs or fees is to get in uh 620 00:35:19,120 --> 00:35:23,480 Speaker 1: So pretty reasonable there. But the model itself is a 621 00:35:23,600 --> 00:35:27,280 Speaker 1: very very profitable model. Uh. The majority of our club's 622 00:35:27,760 --> 00:35:31,680 Speaker 1: average between one five and one seven. We have clubs 623 00:35:31,760 --> 00:35:35,040 Speaker 1: over two million uh and they kick out around on 624 00:35:35,040 --> 00:35:37,719 Speaker 1: the bottom. So um. Not only that, but part of 625 00:35:37,719 --> 00:35:39,640 Speaker 1: what we've done over the course of the last fifteen 626 00:35:39,680 --> 00:35:43,480 Speaker 1: months is that we've created a whole new suite of services. 627 00:35:43,520 --> 00:35:47,560 Speaker 1: So we now locate the real estate, we deliver a 628 00:35:47,680 --> 00:35:52,040 Speaker 1: turnkey solution uh and moving from colts Neck, New Jersey 629 00:35:52,080 --> 00:35:54,439 Speaker 1: to our West Palm Beach, we have built a brand 630 00:35:54,440 --> 00:35:59,320 Speaker 1: new supports center which has a learning UM and Training Center, 631 00:35:59,800 --> 00:36:03,600 Speaker 1: so really making sure that we're helping our franchisees that 632 00:36:03,760 --> 00:36:06,680 Speaker 1: enter the system get out of the gate running hard, 633 00:36:06,960 --> 00:36:10,400 Speaker 1: and we work very closely with them with regards to 634 00:36:11,200 --> 00:36:13,279 Speaker 1: their break even. So one of the things that we 635 00:36:13,360 --> 00:36:17,240 Speaker 1: focused heavily on is we do not want franchise's burning 636 00:36:17,239 --> 00:36:18,920 Speaker 1: through work in capital. We want to get them to 637 00:36:18,920 --> 00:36:22,280 Speaker 1: break even as quickly as possible. Uh. The new model 638 00:36:22,360 --> 00:36:24,399 Speaker 1: and the training that we have implemented over the course 639 00:36:24,440 --> 00:36:27,560 Speaker 1: of the last fifteen months has really played out very well. 640 00:36:28,000 --> 00:36:31,520 Speaker 1: And again, we we like our positioning, we like the model, 641 00:36:31,719 --> 00:36:35,080 Speaker 1: and we love where fitness is going. UM Again, I 642 00:36:35,120 --> 00:36:39,359 Speaker 1: think if you take the crisis away from the pandemic, 643 00:36:39,920 --> 00:36:42,560 Speaker 1: not only is fitness going to continue to be relevant, 644 00:36:42,840 --> 00:36:45,440 Speaker 1: it may be more relevant than ever going forward. Andrew 645 00:36:45,520 --> 00:36:47,960 Speaker 1: alfano I, we really do appreciate it. You've been so 646 00:36:48,080 --> 00:36:51,440 Speaker 1: kind to talk with us. The CEO of Retro Fitness, 647 00:36:51,680 --> 00:36:55,279 Speaker 1: we really do appreciate you coming by and talking with 648 00:36:55,360 --> 00:36:59,399 Speaker 1: us about getting fit. I was I'm still getting fit, 649 00:36:59,760 --> 00:37:02,439 Speaker 1: but then I had a surgery and then uh, let's 650 00:37:02,480 --> 00:37:04,719 Speaker 1: make a deal came on and I got distracted, and 651 00:37:04,760 --> 00:37:08,680 Speaker 1: we we really do appreciate it, and I'm going to 652 00:37:08,760 --> 00:37:11,399 Speaker 1: get back to the gym. We appreciate it again. Thank 653 00:37:11,440 --> 00:37:13,360 Speaker 1: you well man. Well hopefully you come down to Retro 654 00:37:13,400 --> 00:37:18,360 Speaker 1: Fitness Week and we can do it together. That Andrew, 655 00:37:18,360 --> 00:37:22,520 Speaker 1: thank you so much. Be well, so very timely interview. Obviously, guys, 656 00:37:22,520 --> 00:37:24,840 Speaker 1: given what's going on here in the Tri State area, 657 00:37:25,360 --> 00:37:28,319 Speaker 1: I was surprised, actually even right at the top to 658 00:37:28,480 --> 00:37:32,319 Speaker 1: hear how Jim's just sort of kept getting pushed back 659 00:37:32,360 --> 00:37:35,240 Speaker 1: and pushed back, uh and push back. On the one hand, 660 00:37:35,360 --> 00:37:38,680 Speaker 1: I get it. On the other hand, it felt like 661 00:37:38,719 --> 00:37:41,920 Speaker 1: this would have been more of a priority for public 662 00:37:41,960 --> 00:37:46,479 Speaker 1: officials given the number of small businesses that we're talking about, 663 00:37:46,480 --> 00:37:49,239 Speaker 1: and also that health and wellness is sort of at 664 00:37:49,360 --> 00:37:51,200 Speaker 1: the core of this. I guess people are just worried 665 00:37:51,239 --> 00:37:55,440 Speaker 1: about small inside gatherings. Yeah, and I agree with you, 666 00:37:55,520 --> 00:37:58,000 Speaker 1: and and I guess the take away I got from 667 00:37:58,000 --> 00:38:03,520 Speaker 1: that from this interview also was simply unfortunately, the franchisees 668 00:38:04,320 --> 00:38:07,719 Speaker 1: are the ones h that are struggling through all of this, 669 00:38:07,920 --> 00:38:13,160 Speaker 1: and and at least the Retro Fitness is trying to 670 00:38:14,320 --> 00:38:16,520 Speaker 1: do something I mean, not much they can do, but 671 00:38:17,120 --> 00:38:21,920 Speaker 1: I mean at least they are aware of the problems 672 00:38:21,960 --> 00:38:26,000 Speaker 1: that the franchisees are having I agree with that, Mike. 673 00:38:26,239 --> 00:38:28,719 Speaker 1: What struck me? He said back on March twelfth, he 674 00:38:28,880 --> 00:38:32,520 Speaker 1: got all the franchise uh owners together and said, we're 675 00:38:32,520 --> 00:38:34,840 Speaker 1: gonna go through this together. We're gonna wave all fees 676 00:38:34,880 --> 00:38:37,640 Speaker 1: for you. We're gonna take care of all the marketing fees. 677 00:38:37,760 --> 00:38:40,440 Speaker 1: Don't you worry about the thing. And you know, and 678 00:38:40,640 --> 00:38:43,960 Speaker 1: we all know other businesses said, hey, you bought the franchise. 679 00:38:44,000 --> 00:38:45,680 Speaker 1: That's you're a problem, Mike. I can't deal with it 680 00:38:45,760 --> 00:38:48,279 Speaker 1: right now. And so um, you know, the mothership is 681 00:38:48,320 --> 00:38:50,759 Speaker 1: looking out through all the franchisees and and you know, 682 00:38:50,840 --> 00:38:53,520 Speaker 1: in times the tough when when you have a boss 683 00:38:53,680 --> 00:38:55,239 Speaker 1: or you have a friend who is loyal to you, 684 00:38:55,800 --> 00:38:58,400 Speaker 1: uh that that's a lifetime bond and a lifetime packed 685 00:38:58,400 --> 00:39:01,640 Speaker 1: And I think it was a great move by Andrew. Yeah, no, interesting, 686 00:39:01,680 --> 00:39:04,279 Speaker 1: And I mean, and I think it's notable that this 687 00:39:04,400 --> 00:39:07,600 Speaker 1: is a guy and I've followed the fitness business for 688 00:39:07,640 --> 00:39:09,880 Speaker 1: a long time. This is not a guy who's of 689 00:39:09,920 --> 00:39:12,040 Speaker 1: it in many ways. You know, he worked at Starbucks, 690 00:39:12,080 --> 00:39:14,839 Speaker 1: he worked at the learning company before he did this, 691 00:39:15,160 --> 00:39:18,840 Speaker 1: and uh So to your point, lynch E, it seems 692 00:39:18,840 --> 00:39:22,640 Speaker 1: like he understands sort of the customer more than anything. 693 00:39:22,719 --> 00:39:25,719 Speaker 1: And also the notion of these small businesses, I think 694 00:39:25,760 --> 00:39:28,560 Speaker 1: is a really important thing to remember. So we'll see 695 00:39:28,560 --> 00:39:33,280 Speaker 1: where this business, this specific business goes. Um also interesting 696 00:39:33,280 --> 00:39:36,400 Speaker 1: to hear him note that you know they were in 697 00:39:36,440 --> 00:39:41,040 Speaker 1: the midst of this transformation when this massive, unexpected pandemic hit. 698 00:39:41,239 --> 00:39:44,240 Speaker 1: And uh, you know, timing is everything, as he said, 699 00:39:44,280 --> 00:39:49,960 Speaker 1: so best of luck to him. For sure, feels better 700 00:39:50,040 --> 00:39:51,680 Speaker 1: to be a number one than number five. I'll wear 701 00:39:51,719 --> 00:39:53,440 Speaker 1: a number because of Mike. We have a chance to 702 00:39:53,440 --> 00:39:55,040 Speaker 1: go for three and a row good numbers in a 703 00:39:55,080 --> 00:39:57,200 Speaker 1: good time. And I first started wearing the number, I 704 00:39:57,200 --> 00:40:00,640 Speaker 1: would just have the in Bloomberg Business of School, the 705 00:40:00,760 --> 00:40:04,680 Speaker 1: number of the week. Well, ding, ding and ding, that's 706 00:40:04,719 --> 00:40:07,840 Speaker 1: the bonus bell. You know what. It's time for. Everybody, 707 00:40:07,920 --> 00:40:11,160 Speaker 1: huddle around the set again, turn it up. It's time 708 00:40:11,200 --> 00:40:16,400 Speaker 1: for the number of the week by everybody. I'm going 709 00:40:16,480 --> 00:40:20,239 Speaker 1: to give you the number thirty two billion dollars in 710 00:40:20,360 --> 00:40:26,600 Speaker 1: consolidated revenue generated by this person. And I will give 711 00:40:26,640 --> 00:40:33,320 Speaker 1: you a hint. It is very timely. Thirty two billion 712 00:40:33,400 --> 00:40:39,680 Speaker 1: dollars generated by this person. Wow, and it is very timely. 713 00:40:41,920 --> 00:40:47,640 Speaker 1: This weekend very timely this week this weekend. Oh boy, 714 00:40:49,120 --> 00:40:52,520 Speaker 1: m hmmm. So it's a sports figure because this is 715 00:40:52,560 --> 00:40:55,080 Speaker 1: the business of sports. I hope it's a sports figure, right, 716 00:40:55,200 --> 00:41:00,120 Speaker 1: Michael Barr. It's not Queen Elizabeth, not like that, not 717 00:41:00,360 --> 00:41:08,560 Speaker 1: like yeah, the Duchess of York. Um uh timely this weekend. 718 00:41:08,600 --> 00:41:12,040 Speaker 1: What's going on this weekend? Lynch? Well, let's see these 719 00:41:12,239 --> 00:41:17,400 Speaker 1: TPC Boston. Tiger Woods is playing. Uh. Could he have accumulated? Uh? 720 00:41:17,520 --> 00:41:19,680 Speaker 1: I think we're a week shy of the US Tennis Open. 721 00:41:19,680 --> 00:41:22,160 Speaker 1: I was gonna say the Williams sisters, but I'm gonna 722 00:41:22,200 --> 00:41:26,320 Speaker 1: go with Tiger Woods consolidated revenue. That's how much Tiger 723 00:41:26,320 --> 00:41:31,360 Speaker 1: Woods is uh uh consolidated and he's playing in the 724 00:41:31,360 --> 00:41:38,520 Speaker 1: Northern Trust Open this weekend. Jason, I'm way off if 725 00:41:38,840 --> 00:41:43,920 Speaker 1: thirty two billion dollars one one person, presumably an athlete. 726 00:41:44,200 --> 00:41:47,360 Speaker 1: I don't. I can't get the timeliness of it. I 727 00:41:47,480 --> 00:41:51,360 Speaker 1: like that. I like that, guess, but I mean I 728 00:41:51,440 --> 00:41:55,759 Speaker 1: think my billion dollars two billion dollars that was a 729 00:41:55,840 --> 00:42:00,719 Speaker 1: b right, that's a I don't. I mean, my mind 730 00:42:00,800 --> 00:42:03,319 Speaker 1: is so won the NBA playoffs that I'll go with 731 00:42:03,360 --> 00:42:07,520 Speaker 1: Michael Jordan, although I don't think that that's right. Okay, 732 00:42:07,760 --> 00:42:13,200 Speaker 1: you're both wrong. I'm just gonna make this noise. What 733 00:42:13,280 --> 00:42:16,960 Speaker 1: has someone to do with cars? Oh, Daytona's this weekend right? Well? 734 00:42:17,040 --> 00:42:24,640 Speaker 1: Indianapolis one Roger Penske. This is his first INDI five 735 00:42:24,680 --> 00:42:29,120 Speaker 1: hundred as owner of the brickyard. Uh. It would not 736 00:42:29,200 --> 00:42:34,600 Speaker 1: have fans unfortunately. UH. And Mr Pinsky said I was 737 00:42:34,640 --> 00:42:37,200 Speaker 1: sorry for that and he will miss the fans. But 738 00:42:37,239 --> 00:42:39,759 Speaker 1: it is the one running of the D five hundred. No, 739 00:42:40,360 --> 00:42:43,759 Speaker 1: I'm talking about the front row. Marco Andretti on the 740 00:42:43,760 --> 00:42:50,000 Speaker 1: pole at two thirty one zero six eight, Scott Dixon 741 00:42:50,040 --> 00:42:53,080 Speaker 1: on the inside. Uh, in the middle I should say, 742 00:42:53,120 --> 00:42:58,200 Speaker 1: at one uh, and then Takuma Sato, a former winner 743 00:42:58,239 --> 00:43:02,920 Speaker 1: with Rayhall Letterman race at two thirty point seven. So 744 00:43:02,960 --> 00:43:06,120 Speaker 1: that's the front row for running of the Indianapolis five. 745 00:43:06,320 --> 00:43:11,839 Speaker 1: But wait, what's that Penskey that that's what he generates 746 00:43:11,680 --> 00:43:15,440 Speaker 1: its consolidated revenue. We should have known, Jason it had 747 00:43:15,560 --> 00:43:19,320 Speaker 1: something to do with I just yeah, that's that's on me. 748 00:43:19,640 --> 00:43:23,640 Speaker 1: That's on me. O, good lord. I did tell that 749 00:43:23,719 --> 00:43:26,400 Speaker 1: the other day was when Stash was filling in uh 750 00:43:26,520 --> 00:43:29,600 Speaker 1: during the Super Bowl at Indianapolis they had media night 751 00:43:30,000 --> 00:43:33,239 Speaker 1: over at the at the race track and it was 752 00:43:33,280 --> 00:43:35,080 Speaker 1: a pretty big thrill. We went up in the pagoda 753 00:43:35,200 --> 00:43:38,480 Speaker 1: and had Hamburger sliders, and then everyone got to get 754 00:43:38,480 --> 00:43:41,000 Speaker 1: down to the finish line and bend over and kissed 755 00:43:41,040 --> 00:43:44,600 Speaker 1: the bricks on the finish line. Was pretty oh man, see, 756 00:43:44,640 --> 00:43:47,560 Speaker 1: I would love to do anyway. I'm agreement. Uh. This 757 00:43:47,600 --> 00:43:50,359 Speaker 1: is the Bloomberg Business of Sports show. We're here each 758 00:43:50,400 --> 00:43:53,400 Speaker 1: and every week at the same time, pleas online wherever 759 00:43:53,440 --> 00:43:56,160 Speaker 1: you get your podcasts, and you can catch those Mondays, 760 00:43:56,920 --> 00:44:01,680 Speaker 1: Wednesdays and Thursdays. I'm Michael Barr on Twitter at Big 761 00:44:01,680 --> 00:44:05,279 Speaker 1: Bar Sports. Ladies and gentlemen, start your engines. I'm Mike 762 00:44:05,400 --> 00:44:08,640 Speaker 1: Lynch and Lynch e w CBB and bringing up the rear. 763 00:44:08,680 --> 00:44:12,239 Speaker 1: I'm Jason Kelly on Twitter. Find me at Jason Kelly News. 764 00:44:12,239 --> 00:44:13,840 Speaker 1: Thanks so much for Johnny us. We'll talk to you 765 00:44:13,880 --> 00:44:17,200 Speaker 1: next week. Speed Book. You're listening to Bloomberg Business and 766 00:44:17,280 --> 00:44:19,560 Speaker 1: Sports from Bloomberg Radio around the world.