Planet Fitness is experiencing growth in gym visits and memberships despite health concerns regarding the COVID-19 omicron variant, according to CEO Chris Rondeau.

The willingness to visit the brick-and-mortar gyms is the result of the company’s members’ comfort with the chain’s health and safety protocols, as well as a desire to prioritize fitness.

• Planet Fitness posted the highest net member growth in the history of the company’s third quarters in Q3 2021 for a total of 15 million members.
• Gym visits in the U.S. for the month of October were down just 8% from 2019 pre-pandemic levels, according to New York-based investment firm Jefferies Group.
• Before COVID-19 vaccines, the company saw a pullback on joins and workouts, and membership cancellations jumped. 

Planet Fitness Pandemic Bounceback

Planet Fitness — which has 2,193 brick-and-mortar locations globally — went public via an IPO in 2015 at a valuation of $1.5 billion and now has a market cap of $7.7 billion.

The company generated $154.2 million in revenue in Q3 2021, compared to $105.3 million for the same period the year prior. 

The New Hampshire-based company posted a net income of $18.6 million during the quarter, up from a loss of $3.3 million in Q3 2020.

Arctos Sports Partners is the first private equity fund to buy into the NHL, following a change in bylaws that allowed such investments. 

The fund closed investments in the defending Stanley Cup champion Tampa Bay Lightning and Minnesota Wild, now owning 10% of the latter. The league’s board of governors voted in December to allow institutional investors.

The Wild and Lightning were respectively valued at $675 million and $650 million by Forbes last month, making them the 19th- and 20th-most valuable NHL teams. Both figures rose over 30% from a year ago.

Arctos has quickly established itself as one of the most prominent names in sports private equity.

• Its flagship fund rose above $3 billion after a $2.1 billion raise in October.
• It invested in two Northern California NBA teams: the Sacramento Kings (17% stake, $1.8 billion valuation) and the Golden State Warriors (5% stake, $5.5 billion valuation).
• It also has holdings in Fenway Sports Group and the Premier Lacrosse League.

New Ownership Possibilities

The NHL’s new rules allow teams to sell up to 30% stakes to private equity firms.

Individual firms can own part of up to five teams, can hold up to 20% in any team, and must invest at least $20 million each time.

Authentic Brands Group is reportedly purchasing a 55% stake in David and Victoria Beckham’s DB Ventures for $271 million.

DB Ventures controls the soccer star’s deals with Tudor watches and Haig whiskey. The company is reportedly looking to pay off debt while generating capital for growth — it has $90 million in total revenue, according to The Mirror.

Beckham repurchased his previously sold stake from Simon Fuller’s XIX Entertainment for $50 million in 2019, one of his several major deals in recent years.

• David Beckham and co-owners Jorge and Jose Mas completed their buyout of MLS’ Inter Miami in September. The team was founded in 2018 by Beckham.
• In October, he was announced as the “face of the Qatar World Cup.”
• Beckham signed a lifetime deal with Adidas in 2003 worth $160 million.

Beckham reportedly made more in his first year of retirement than any year he played.

ABG’s Empire

Authentic Brands Group, which purchased Reebok for $2.46 billion in August, recently announced it would postpone its scheduled IPO until 2023 or 2024 in order to bring in capital from private equity firms CVC Capital Partners and HPS Investment Partners. 

The investments value ABG at $12.7 billion.