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News from September 2008

Industry Update

September 8, 2008

The High Cost of Playing Music

A proposed new tariff on music will radically increase the cost of doing business in the fitness industry in Canada. Tariff 6, put forward by the Neighbouring Rights Collective of Canada, would require commercial club owners to pay twice: $3 per fitness class, plus 5% of monthly gross receipts to fitness “venues.” If ratified the NRCC would have the authority to collect fees retroactive to January 2008——a potential windfall of $100 million. Under the new proposal Tariff 19 fees paid to the Society of Composers, Authors and Music Publishers (SOCAN) would continue.

Run for Your Life:

A 20-year study done by Stanford University and published in August in the Archives of Internal Medicine shows that middle-aged members of a runner’s club were half as likely to die over a 20-year period as people who did not run. The study showed a reduced risk of heart disease, cancer, and neurological diseases such as Alzheimer, and also lower mean disability levels at all time points. Runners also reported fewer injuries of all kinds—including to their knees. “Common sense and background science support the idea that there is nothing magical about running per se,” says Dr. James Fries who worked on the study. “It is vigorous exercise that does the trick.”

Club Fit purchased by International Fitness Holdings

The Edmonton-based chain of fitness centres, Club Fit, has been sold to a U.S. private equity firm—International Fitness Holdings (World Health Club)—which was itself purchased by North Castle Holdings in March. Club Fit president David Hardy will join the board of International Fitness Holdings and serve as a consultant. Blake McDonald, Chief Operating officer will continue to run Club Fit in Edmonton. “The acquisition represents an important step in achieving our long-term strategic vision of establishing International Fitness Holdings as the leading fitness club operator in Western Canada,” says Doug Lehrman, managing director at North Castle.