Small gym guns for Discovery: Battle for subsidies intensifies

All gyms should be equal, but some are more equal than others.

Bedfordview facility Body Action said this holds true in the scrum for subsidies between gyms that will soon give wellness programmes like Discovery’s Vitality a workout before the Competition Tribunal.

Body Action chief executive Antonio Iozzo said his business – and many other smaller gyms – has been deliberately excluded from a piece of the health funder wellness programme pie, presently a duopoly between Planet Fitness and Virgin Active.

According to Iozzo, these health clubs receive subsides from programmes like Vitality, but it’s a closed shop and small players are kicked to the sideline.

He wants the Competition Tribunal to break down the walls between operations like his and Vitality members, for example, that may opt to join his club and not a Virgin or Planet Fitness.

In 2017, Planet Fitness founder Manny Riviera said he fought for a piece of the wellness programme pie when his chain was a start-up.

Doing a deal with Vitality had a massive impact on his business as medical aid members are a huge income earner. Discovery discredited Iozzo’s argument.

“We are disheartened by the accusations made by Body Action, an approved Discovery Vitality fitness facility, and find them to be without merit, disingenuous and misleading.”

The funder also rejected Iozzo’s claims that independent health clubs are excluded from the scheme.

“We have partnerships with several gyms and other fitness facilities, big and small.” Iozzo said Discovery gets away with a lot because they financially outmuscle opponents.

“Smaller gyms grouped together a few years ago and tried to install action at the Competition Commission. But money ran out and it fizzled out.”

Discovery: “The Competition Commission conducted a thorough investigation of Body Action’s complaint and found it without merit, resulting in the nonreferral of the matter in April.

“However, Body Action has chosen to self-refer the complaint to the Competition Tribunal.

“We believe the Competition Commission’s nonreferral reflects the integrity of our business practices, and we are defending the self-referral before the Tribunal.”