Key Principles
The sustainability of The Sports & Leisure Group’s business model is underpinned by 3 key principles:
1. Land Partnership Model
Underlying The Sports & Leisure Group’s business model and growth plans is a unique land partnership model agreement which benefits both the landlord and the tenant. The landlord provides favourable land agreements in the form of long leases, attractive rentals and long rent review periods. In return for these favourable land agreements, The Sports & Leisure Group provides 100% of the capital development costs and offers special reserved rights for the land owner over the use of the new facilities and the provision and maintenance of sports fields. These reserved rights, whilst highly beneficial to the land owner, remain only a small proportion of the total capacity of the new facilities.
The partnership between landlord and tenant is unique, requiring a strong working relationship and a skilled operating team that can commercially succeed on high acreage multi sport developments. The Sports & Leisure Group has proven it has the knowledge and experience to succeed with this partnership model and has established itself as a category leader. The Sports & Leisure Group has now begun to extend this template beyond its Civil Service Sports Council (CSSC) origins into a number of partnerships with public and private organizations.
2. Site Pipeline Visibility
The Sports and Leisure Group has developed a number of new partnerships with both public and private organisations across both Roko Health Club and PlayFootball brands. This gives the group strong visibility to its site development roll out programme, a key driver of its business growth. By 2009 the group plans to have opened:
• 10 ROKO Health Clubs
• 20 PlayFootball centres
3. Flexibility
Whilst ensuring a common base model throughout its estate, The Sports & Leisure Group’s flexible operating model enables an appropriate solution for each site and land partner aimed at maximising investment returns on a site by site basis.