interview


MARK MASTROV


Mark Mastrov has pulled off an amazing deal with his latest venture – the creation of a chain of health clubs with Madonna. He talks to Liz Terry


P


retty much everything in the Mastrov universe goes at a fast pace – emails are answered within minutes,


regardless of the time of day (or night) –


“I don’t sleep much,” he says. Questions are answered without hesitation and everything followed up super-fast. You’re left with the impression that he’s just really good at doing business. Having spent 25 years building up


global health club chain 24 Hour Fitness, Mastrov sold it in 2005 to Forstmann, Little & Co for US$1.68bn – the most ever paid for a company in the industry. Part of the value was generated by the relentless drive for improvement – 24 Hour was known for its innovative approach to operations, pioneering a number of practices including round-the- clock access, electronic monthly billing and celebrity endorsements. After two transitional years as chair


Mastrov moved on and, with his business partner Jim Rowley, is now growing his latest business: New Evolution Ventures (NeV), a California-based global health club operator and investor, with interests stretching from the US and Canada to Australia and Russia.


partnering madonna NeV’s latest venture, announced in November, is Hard Candy Fitness, a chain of health clubs being developed with Madonna and her manager, Guy Oseary. Mastrov says 20 clubs will open in quick succession in major cities around the world, including the UK, with more planned on completion of this initial phase. Madonna isn’t the fi rst celeb to tie up with Mastrov: he has previously


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partnered with Andre Agassi, Steffi Graf and Magic Johnson to open clubs. “We’ve worked with others,” he says, “but Madonna’s in a league of her own. She’s one of the most famous entertainers and performers of all time. “I’ve been able to spend time with her


over the last couple of years and get to know and understand her. She’s very focused on her health and wellness and very opinionated on the way things can be done better in the industry.” Mastrov explored various options in


bringing the Madonna-branded health and fi tness offer to market, including discussions with a major hotel group for a joint venture, but in the end the decision was made to invest and operate a chain of clubs: “We’ve formulated a concept with Madonna that brings a very cool fashion and music environment into the health and fi tness space, with a lot of innovation. We’re taking the health club concept and turning it on its head to create a funky fi tness offering that enables people to have a motivating, inspiring experience.” So how has Mastrov pitched the new business in terms of clientele? “The


Read Health Club Management online at healthclubmanagement.co.uk/digital


Madonna at the opening of Hard Candy Fitness, Mexico City, in November 2010


clubs are aimed at the higher end of the market,” he says. “For example, in Mexico City, members will pay an enrolment fee of around US$200 and monthly fees of around US$150.” The aim is to locate the clubs in


upmarket residential areas: “We’re looking for strong demographics with high household income, in cities where people will be able to afford a slightly higher price point. We will look to convert some clubs and also build new.” Locations may vary, as Mastrov


explains: “In a dense, urban setting, we might be aiming for a catchment area of 10–15 blocks, but in a suburban area you might be looking at 10–15 minutes’ drive time. It will depend where the site is. Parking is important, as is having physical plans that fi t the needs of the brand. “The intention is to create a business


with high-end locations in the best corners of the best cities of the world. “Much will depend on the real estate available and who we partner with: in


january 2011 © cybertrek 2011


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