It takes a brave executive to surface as a Brexiteer or a proud advocate for Remain. The director general of the British Chambers of Commerce found himself out of a job after declaring himself pro-Brexit. Icy ground all round!
I was asked by Number 10 to explore the willingness among CEOs of the major multinational operators in our sector to come out on the issue of Britain remaining in the EU.
Of those I approached, only Glenn Earlam – the new CEO of David Lloyd Leisure – was willing to do so publicly, perhaps because of the more politically active nature of his previous role, heading up Merlin in the entertainment industry, where he campaigned strongly for regulatory change. Earlam is in favour of remaining in the EU.
Waiting in limbo
Never one to sit on the fence, my personal view is this: on nearly every count, the uncertainty caused by a vote to leave the European Union would be as bad for our sector as it is bad for the wider economy. Indeed, I believe that the stakes for the physical activity sector are even higher than the average.
While we as a sector are on the fast-track to becoming the backbone of the UK’s emerging wellbeing industry, the uncertainty resulting from a Leave vote would stifle many of the key reasons why our sector has experienced growth over the past few years.
Leisure operators are now more intrinsically linked than ever to the UK’s financial centres, and understandably keep a close eye on what happens in the City. The very fact that the referendum is happening is already holding the industry back from growth; a well placed source recently indicated to Health Club Management that Pure Gym will hold off from an IPO until the jittery nerves of investors are calmed by a firm decision on the EU. Bannatyne is rumoured to be following suit. In the background, we have the resolution of the future of Fitness First.
All of this is impacted by the uncertainty, and a vote to exit would destabilise the entire economy for the next decade, leading to more of the same.
A backwards step
Away from big leisure IPOs, the other areas that a British Exit from the EU would impact are clear to see.
In health, where many big players from our sector now hang their hat, there’s a clear indication from all sides that leaving the EU would be a backwards step for preventative health and wellbeing. Charities and research bodies cite the importance of European funding for large-scale research projects, and the ability to put evidence into practice.
For public health, many of the pan-European programmes and initiatives have been influential in bringing the activity agenda to the fore.
It’s clear that leaving the European Union would have implications for businesses of all shapes and sizes.
Stopped in our tracks?
The fact that – according to the Financial Times – Britain would have to renegotiate all of its trade deals would also present a peripheral (but frustrating) barrier to business.
Key here, though, is the fact that this would have an effect on the service industries most of all, via the disruption – at least in the short term – of free movement and free trade.
Finally, from a big picture perspective, the whole issue is amplified when it comes to health and fitness. And this is purely because of the state the industry finds itself in: firing on all cylinders, attracting interests from all sides, and certainly on the right path.
