Tax deductions for fitness??????

By Ryan on August 29th, 2007

Recently, I read this article on the DallasMorningViews titled the the “Obesity strategy”, made by Michael Landauer.  He states that enough is enough; there’s been endless editorials regarding America’s and the world’s obesity epidemic and there’s been no significant changes.   There has been constant pointing of the finger but no real direction by the governments.  If our governments acted on smoking 30 years ago, the problem would be well under control by now.  Now it is time to make a stand on the obesity issue - no more side stepping the issue or worrying about offending people.  The government should be offering tax deductions to those that exercise on a regular basis and measured with yearly fitness evaluations.  Gym memberships should be entirely tax deductible as should 1 pair of exercise shoes. Hang on a second, maybe we should start turning our attention to the private health funds that like to provide a lesser service and a greater premium charged on a yearly basis (but the governments don’t want to know about that either). 
Interested in getting anyone’s views on this issue good or bad……

Virtual Personal Trainers….. What the???

By Ryan on August 24th, 2007

You’ve heard all the fuss about Wii systems and how there getting people off their butts and exercising.  Now there’s the new way to justify your purchase of a PS2 or Xbox as well.  With exercise assistnace provided to you buy your own virtual personal trainer.   The personal training program http://www.yourselffitness.com/ provides a variety of exercises by enlisting your new best friend Maya (your virtual trainer).  Maya takes you through fitness tests etc. 

I guess all you have to do now is ensure you’re motivated enough to put the program on, look at the plus side you can always turn the program off when Maya’s voice becomes just too annoying.

A recent fitness industry article about transfermymembership.com in the United Kingdom.

By Ryan on August 23rd, 2007

 Workout Magazine July 2007 The UK’s No1 fitness industry magazine

Written by Mary Ferguson
Mary contacted me at the end of May asking if I would like to have some input to her review about my site www.transfermymembership.com.  I’m happy to report that Mary produced a nonbiased review of my site and how I believe it will positively affect the fitness industry. 

Mary Wrote:
Ryan, a personal trainer who has worked in membership sales, believes trading memberships can benefit a gym in a number of ways.   He said:  ” I know how difficult it can be to sell yearly memberships to patrons who are concerned about being locked into an annual contract, so services like this can be used to reduce consumers’ uncertainty, clinching the deal. 

My input:
I believe, in today’s service based industry, gyms have to become more flexible to the consumer realising a persons situation may change.  In actual fact it can assist gyms in retaining a gym membership that would have been cancelled once the contract is completed. 

Mary Wrote:
“Gyms are under constant pressure to offer month to month contracts instead of 12 month tie-ins but from a business perspective six and twelve month memberships are essential to shield gyms from seasonal fluctuations in membership sales”.  
“Transferring memberships allows gyms to introduce a greater flexibility to the marketplace as well as enhancing the length of each membership deal”. 

My input:
I couldn’t have said it better myself.  The introduction of our site to the market place was to fill a need for both the consumer and the gyms.  Consumers or members may become disgruntled if they feel they have to continue paying for a membership they aren’t utilising.  On the flip side, gyms have to make money to keep their doors open.   It would be almost an impossibility for a gym to survive financially if they had to offer month to month memberships.  Making it finacially difficult in winter periods and the festive season.   The bottom line is, if gyms “don’t make money” service slips and so does the standard of equipment and facilities.

Gyms in Afghanistan

By Ryan on August 20th, 2007

According to the August issue of Men’s Health magazine the  Mr. Afghanistan bodybuilding contest has become the hottest ticket in town…

Since the fall of the Taliban, gyms have opened throughout Kabul.  You see them everywhere, tucked into garage-size storefronts beneath huge pieces of plywood.  The gyms… stand in the shadow of shattered buildings, beside other shops selling sacks of cement and cases of Coke — the foundations on which all great nations are built.  (New York times)

It may seem odd to some that in a country ravaged by war with little or no facilities that fitness is of any concern. 
Maybe the fact is because the lack of these facilities or more importantly services TV and the other deterrents of Western society they have more time to focus on themselves.

There may be a lesson in that for all of us?????

Esporta - UK

By Ryan on August 18th, 2007

LONDON (Reuters) - Upmarket fitness chain Esporta, whose parent companies filed for administration, has been approached by a handful of private equity firms in search of a bargain, people familiar the situation said on Thursday.  Esporta and administrators Grant Thornton declined to comment.

Syrian-born billionaire Simon Halabi bought Esporta last year for 500 million pounds with SocGen’s financing.  Halabi’s loss could reach as much as 150 million pounds if the company is sold for about 300 million pounds, just to cover its debt, erasing the equity value.

Lazard is advising Esporta.

Adapted from Elena Moya
This article: http://business.scotsman.com/latest.cfm?id=1298012007

Nutrition gone crazy???? The US

By Ryan on August 8th, 2007

Has nutrition gone over the top?   This was recently found whilst searching on the net……  

Federal Government Mulls Nutrition Labels for Wine
Wineries may be required to list calorie content, carbohydrates, fats, proteins and other information on labels

Laurie Woolever

The federal government put forth last week two proposals that, if passed, would require all alcoholic beverages sold in the United States to carry alcohol content statements and serving-facts panels on their labels. According to a statement issued by the Alcohol and Tobacco Tax and Trade Bureau (a division of the Department of the Treasury), under the proposed amendments to existing regulations, winemakers, beer brewers and spirits distillers would be legally obligated to provide information about calorie content, carbohydrates, fats and proteins in their products.

Give us your say what do you think?  I believe if your unable to realise that too much alcohol isn’t the best for you maybe you need to drink some more.  Yes it may be helpful to know how many calories you’re consuming.  After 2+ drinks do you really think anyone is going to bother reading the fine print?  If they’re able to that is…….   

Bannatyne Fitness Acquires Living Well UK News…..

By Ryan on August 6th, 2007

On August 9th 2006, Bannatyne Fitness Ltd acquired the LivingWell Premier Health club chain from the Hilton Hotel UK Group, taking the Bannatynes Health club chain to over 60 locations.

Bally Total Fitness files for Ch. 11

By Ryan on August 3rd, 2007

Bally Total Fitness, one of the country’s largest fitness chains, filed a plan late Tuesday in U.S. Bankruptcy Court for the Southern District of New York. The plan would reduce its debt by $150 million and bring in $90 million in new capital for investing in some of its 375 clubs nationwide.
Company officials said the bankruptcy protection filing would not affect operations at the clubs.

“This is a positive step to ensure Bally’s future success,” said Don Kornstein, Bally Total Fitness interim chairman. “Members, employees and vendors will not be adversely impacted.”

According to its 2006 annual report, Bally’s membership declined every quarter last year on an annual basis, as well as the first quarter of 2007. The company reported a loss of $107.6 million in fiscal year 2006, ended Dec. 31.

Bally Total Fitness was a major player in fitness centers , but in recent years has faced competition from other well established clubs and new comers to the market. 

Goodlife Health Clubs Set to grow even bigger

By Ryan on August 1st, 2007

Macquarie Leisure is set to become major player in health and fitness market.   Macquarie Leisure Trust Group (ASX:MLE) announced on the 31st July 07 the acquisition of the Goodlife Health Club chain (“Goodlife”) of 18 established fitness centres in Australia for A$60 million.

Established in 1998, the Goodlife chain is the dominant branded fitness chain in Queensland with 13 sites and has successfully expanded its operations into Victoria with four sites and New South Wales with one site. Three further sites are in the planning stage with another established site under a call option.

The acquisition is expected to deliver significant earnings accretion of 3 - 5 per cent and distribution accretion of 8 -10 per cent in the 2009 financial year.1

Macquarie Leisure’s chairman Mr Neil Balnaves said: “We are delighted with the acquisition of Goodlife as it is an ideal platform for Macquarie Leisure to become a major player in the Australian health and fitness market.”

Goodlife comprises an established portfolio of medium to large clubs with a strong membership base and modern facilities on competitive long-term leases with an average lease term in excess of 15 years. The chain’s position is further strengthened by an experienced and proven management team who will retain an equity interest and will be incentivised to drive future expansion through a long term performance incentive.

Group CEO, Mr Greg Shaw said: “The transaction was particularly compelling to Macquarie Leisure, not only for the strength of the existing operations and current roll-out program but also because of the operating synergies and site acquisition opportunities that could be delivered through the Macquarie Leisure and broader Macquarie Real Estate portfolio.  We have a number of immediate opportunities for fitness facilities to enhance returns from existing bowling sites, to cross promote to the AMF Bowling and Dreamworld staff and customer base and to negotiate more competitive purchasing agreements”.

The Australian fitness industry continues to enjoy strong growth through positive fundamentals including:

increased consumer interest in pro-active health management and weight loss; government and health industry initiatives to promote healthy lifestyles; greater interest in fitness from an ageing population;
rising disposable incomes and increased spending on leisure and lifestyle; and, global consolidation of the industry with branded chains enjoying above average market growth with higher quality and more profitable facilities.
“We see significant opportunities to expand the portfolio in Australia’s metropolitan markets over the next three years particularly as health club ownership in Australia is highly fragmented and market penetration of approximately 9 per cent is well below that of other developed countries at approximately 15 per cent.  In the medium term, Asia is also likely to provide strong growth opportunities with penetration rates of below one per cent and an emerging middle class with high levels of disposable income available for leisure activities,” Mr Shaw added.

The acquisition is intended to be funded through an appropriate combination of debt and equity. In the short term the transaction will be completed utilising existing debt capacity within current facility limits.  The transaction is subject to assignment of property leases which is expected to occur within six weeks.

1Assumes 70 per cent equity funding and 30 per cent debt funding and no additional developments beyond those currently identified.

Macquarie Leisure Trust Group is a stapled entity with assets under management of more than A$600 million. The Group owns and operates world class leisure assets including Dreamworld, WhiteWater World, d’Albora Marinas, AMF Bowling and Main Event.   More than A$23 billion of real estate assets are managed by Macquarie Real Estate and its associates, across a portfolio of listed and unlisted property trusts, unlisted development funds and property investment syndicates, globally.

For further information, please contact 1300 365 585 or propfunds@macquarie.com

Due care and attention has been exercised in the preparation of forecast information, however, forecasts, by their very nature, are subject to uncertainty and contingencies, many of which are outside the control of MLML. Actual results may vary from any forecasts and any variation may be materially positive or negative. Source:  http://www.macquarie.com.au/au/property/mle/news/20070731.htm

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