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- Title
Its Simplicity is its Strength.
- Abstract
The article provides information that the value of the financial model for successfully operating a commercial health and fitness enterprise is said to rest in its simplicity. According to the expense/revenue model explained by John McCarthy, executive director of International Racquet Sport Association, operating expenses should not exceed 60% of adjusted gross revenue, and fixed expenses should not exceed 40% of adjusted revenues. Additionally, the accompanying revenue model maintains that the dues-related income normally constitutes a minimum of 65-70% of revenues, although this percentage may be less concerning the ratios of member-owned clubs.
- Subjects
PHYSICAL fitness centers; SPORTS facility finance; MCCARTHY, John, 1927-2011; ECONOMIC models; OPERATING costs; INCOME
- Publication
Journal of Sport Management, 1988, Vol 2, Issue 2, p155
- ISSN
0888-4773
- Publication type
Article