Sport Life Group

Sports grasp

November 6, 2017
Publichnye Liudi

Today fitness is not only a favourite kind of leisure time of the Ukrainians, but a very profitable investment project that has benefits both for the state and its population. 

A number of people who spend a free time for running, bicycling or hiking is growing, and a number of those who post pictures from the gym in the social networks is growing even more. The Ukrainians have new terms in their vocabulary — cross fit, workout and zumba, and a number of participants of large-scale running marathons is growing each year. However, mass sport is not so popular in our country as in Europe. So, this is a reason for business to think that a number of healthy lifestyle fans would grow each year, so the branch is still attractive for investments. 

Soviet “non-seller” for business

On a conservative estimate today Ukraine has over one thousand of objects of social, cultural and sports infrastructure which are not used for the purpose intended. This is several dozens of millions of square meters of vacant useful space. The space that could not only generate profit for someone, but be an anchor of social or recreational infrastructure of the city or district. Demand for such premises from the business sector – in particular, business in sports sphere and fitness sphere — is just huge. 

There is an absurd situation. On the one hand, a lot of vacant premises are a dead weight for the local budgets or State Property Fund. On the other hand, — a core business — sports and recreational — rushes about in one place suffering from the lack of space. 

The situation of redesign of Zaporizhstal sports complex into a modern health and fitness centre is a bright example of fruitful cooperation of the state and business. The group of companies Sport Life has agreed to do this. 

“An option of attraction of real professionals of sports management is the most promising. From a sport development perspective in Zaporizhzhia it’s essential that not a thousand of sportsmen to visit the sports complex on a regular basis, but dozens of thousands of Zaporizhzhia inhabitants. Due to step-by-step reconstruction Zaporizhzhia inhabitants could continue to do sport, train, participate in competitions that would still be held on the basis of sports complex”, — commented Rostyslav Shurma, Director General of PAO “Zaporizhstal”. 

Fitness anchor for any shopping and entertainment centre 

The analysts note the market of commercial space is highly turbulent due to the crisis and is undergoing its painful transformation over the years. Despite the gradual reduction of rental rates seen for three years, a leaser’s pool is unstable and constantly changes — both quantitatively and qualitatively, and vacancy is still at a very high level and reaches 20-30% in some segments. The market has shrunk, there is a struggle for leaser. Price policy – in other words a leaser pirating by lower rates doesn’t work anymore. It’s not possible to continue to reduce rates, this dumping would ruin the market. It’s important for the owners to possess non-price instruments in such conditions that would help the premises to be more competitive and attractive than in a neighbouring business centre or shopping and entertainment centre. And the accompanying infrastructure plays this role. It’s an important condition for the office buildings to have the space with other, not office, designated purpose: cafes, restaurants, banks, showrooms, and fitness clubs. Accompanying service functions providing additional comfort and convenience for staff and guests make the premises much more attractive. 

Dmytro Yekimov, founder of group of companies Sport Life: “Today we see significant benefits the society and state get when private business builds sports infrastructure. Our fitness clubs also have grounds ready to host the world-class swimming, box and other martial arts, squash, strength and dancing disciplines competition. And a growth of Sport Life network to 150 fitness clubs in the coming three years could be seriously regarded as a tremendous contribution into the development of sports infrastructure, mass health improvement of the country population. We are now working with other federations on construction of new champion-level complexes. We would be ready to host the European and World Championships in dozens of sports! We have already started to work with Azerbaijan, Belarus, Austria, Hungary and other countries. Sport is still subsidized in many post-Soviet countries, this is an object of grants, not cooperation between the state and private business, so people come and adopt our experience”.