Show notes
Kimo Seymour (Life Time) and LeLan Dains (UNBOUND GRAVEL) take a look back at 2020 and forward to the 2021 gravel event season including UNBOUND GRAVEL. We take a close look at the COVID protocols the team has put in place to ensure a safe event. UNBOUND GRAVEL Instagram UNBOUND GRAVEL Covid Safety Support the Podcast Join The Ridership Episode Transcription: Craig: Gentlemen, welcome to the show. Kimo: Thanks for having us. LeLan: Yeah, thanks for having us, Craig. Craig: Yeah. So it'd be a good place start off since I've got two of you on the line today. Why don't we start off with Kimo, and then go on to LeLan? And just talk about your respective roles at Life Time. And maybe Kimo, prior to that, you could just tell the listener about Life Time in general. Kimo: Okay. So Life Time may be more nationally known as a leading health club company around the country. We operate 154 what I'll call destination health clubs around the country, and very nice, I'd consider pretty high end type health clubs, very family oriented company in 30 plus states. So Life Time's been around 20, I think we're coming up on 28, 29 years now. I'm fortunate enough to get to work on the events and partnership side of the business, so partnerships meaning most people think of it as sponsorships. We call them partnerships because it's an opportunity for us to share our partners with our audiences, and that happens to live both in events, which are outside of the walls of our clubs, as well as our members, which a couple million members, which attend our clubs. Craig: So how did Life Time start to see exterior events, events outside the club, as being an opportunity for a health club? Kimo: It's a great, great question. I think it was prior to my involvement. I've been with the company a little over nine years now. And my understanding was the idea was we kind of positioned ourselves as what we call a healthy way of life company. And I think the thought at the time, and continues to be our thought process that clubs and these destinations are an important component of a healthy way of life, but not necessarily the only component of a healthy way of life. To live healthy, you have to eat healthy. You have to have activity every single day. And clubs are an important component of that, but we also saw that to keep people in the ecosystem, it's important to engage them beyond the walls of the clubs, and events were an opportunity like that. Kimo: On top of it, events were a great brand. We found out that, gosh, you get a lot of really good exposure for your brand if you go create great experiences outside your clubs, a lot of media exposure. A lot of people start to learn about your ecosystem through these events, and so I think it was a combination of extending that lifestyle beyond the walls of the clubs, but also it was a marketing idea. It was a way to extend the brand, if you will. Craig: And were those first events things that Life Time conceived of themselves and created? Or did it start with sponsorships or partnerships? Kimo: To my understanding, I think there were a few sponsorships early on. But our CEO is, I'll say very protective of the brand. And the idea that we would put our brand on somebody else's experience and not control what that experience is like, he didn't like that idea. He liked the idea that we want to deliver a premium experience in everything that we do, therefore, we probably need to really do that effectively, we need to control that experience. So we get asked frequently if we would like to sponsor other events. We've chosen typically not to do that. We've found more success where we can kind of control and really engage with the consumer with our brand, that putting our name on somebody else's event hasn't been as effective for us. Craig: I remember the first time Life Time got on my radar was from the Leadville 100. And I think it was the year after I did it, the acquisition was announced, and it was really interesting because I know how much the founders of that event, how much passion and love they had for it, so it was very kind of curious when this outside entity came in and acquired that event. And then it was very heartening to see how much involvement the founding team has and still has in it, and how the character of the event didn't change. Kimo: Yeah. That's a great example of one where I think Life Time sponsored it for two or three years prior to the acquisition. I was actually, I came on shortly after that acquisition really, and that was my first job, was to make sure that we didn't "screw it up." And first and foremost to me, I thought it's really important to keep those founders because they're the ones that keep us engaged with the community. And they're the ones that know how to make sure that thing continues with the heart and soul that it had developed over the 25 years previous to our involvement, so yeah, I think that's an example of one where I like to think we've done an okay job of continuing that. And hearing you say that we've continued that experience, and like you say, the heart and soul of it is still there. And I think that's thanks to Ken and Merilee. And now Cole, who's Ken's son, has moved over to start helping us as Ken and Merilee reach a point of potentially retiring. We've got to have some of that continuity there in the Leadville community. Craig: Yeah. And obviously with mountain bike events and gravel events, any mountain event in these small communities, it's just so critical that you have the local team involved, because as you said, it's sort of the heart and soul of the event, and no one wants to lose that. Kimo: Right. Craig: LeLan, maybe that's a good time for you to introduce yourself as part of the team at the event formerly known as DK, now known as Unbound, which we'll get into later. Why don't you introduce yourself and what you do in the family? LeLan: Yeah. Well, I was one of those former owners of DK Promotions at the time. And we'd built up this DK event. And it was just a little over two years ago now that Life Time acquired us. Member of our team were getting on in the years, and we knew that there needed to be a strategy for a succession, if you will. And Kimo was one of the first people saying, "Hey, we want to make sure that you are part of this." In fact, I think it was we don't want to acquire this without you staying on board and helping us run it. So I now work for Life Time as the event director for the Unbound family of events, so that's our training camps in the spring, Unbound of course, first weekend after Memorial Day, our summertime lunar ride, and then that also led into the creation of Big Sugar down in Arkansas, which I help oversee. Craig: Yeah. That brings me back to a year ago in 2019. I had visited the Big Sugar preview ride in Bentonville, which was awesome in October. Life Time had announced its acquisition of Crusher in the Tushar. There was all these big things, and I think as one member of the community, I was so looking forward to 2020. I thought we had so many amazing things planned. I think you guys share that with me. At a strategic level, once COVID came into our lives in February, March, I think it really started kicking up. Obviously, Bobby Wintle's event, The Mid South, was probably the biggest event on the calendar that actually just managed to kick off. How did you guys see that and start thinking about it? It must've been incredibly challenging. LeLan: Yeah. I mean, there was so much unknown for everyone as we came into the start of 2020. Initially, to be honest, I personally didn't think it would affect our event, which was end of May, would've been end of May this year. And so you're there in January, February, and we're thinking, "Okay. If we all play by the rules and we kind of isolate ourselves for a few weeks, this ought to just go away," and boy, were we wrong. I was certainly wrong in that assumption. And so it didn't take long to go from, "Yeah, we're still having event this year," to, "We need to pick a postponement date." Then you get into the summer and you're like, "We're not having anything this year. And so it was, definitely didn't see that coming, for sure. Craig: Kimo, from a corporate level, obviously when this started coming down, it affected all of your events. What was that like on your end? And how did you kind of react corporately to the situation? Kimo: Well, yeah, at the corporate level obviously there was a lot of focus on the fact that we had to close down 154 clubs across the country. And boy, what a huge impact on our business. I'll say we're ... I preach this to our team a lot, I'm just incredibly thankful that in a time like this, we have a big company like Life Time behind us. There's a lot of people out there say, "Life Time, this big corporate giant coming in and gobbling up events and these things." And I think, "Well, these are the times where it's a pretty solid benefit to have that bigger company behind us." And I really feel for a lot of the smaller event producers that aren't getting any support from the government, kind of like restaurants. Right? I don't know how they're surviving. And I just feel terrible for them. You know? Kimo: And we're so fortunate that we were able to, I mean, obviously we canceled. I think we did two events in the beginning of the year. We've canceled the rest of our events for the year. Obviously, hard when you cancel 30 plus events, that's a big, big impact both to our business and to our parent company. So the irony was it didn't happen overnight. Right? This, as LeLan said, this thing evolved. Even in March, we thought, "We still got a chance. By beginning of June, we should be good. We'll come back out of this thing." Little did we know. We're talking about next June now. You know? And when we'll be able to get events back on next year, not this year. I think the hardest, the toughest decisions for me, nobody was going to fault us for canceling an event. People would fault us if we tried to put on an event. Right? Kimo: You'd have probably 50% of the people would be the ones bashing you for it, and 50% would be applauding you for it. We couldn't take that ... We couldn't risk exposing people like that, so the decision was not difficult to cancel. The hardest decision for me was what to do with the team, with the company. We furloughed close to 38,000 team members across the company. And unfortunately, some of those, we still haven't been able to bring back because of this. So we've been fairly fortunate in our business. We did lose a few people along the way, but we've been able to bring a number of people back, and those are probably the hardest decisions that we've had to make this year. Craig: Yeah. I can only imagine. I felt like at the time, there was a lot of sort of woe is me from individual riders who were seeing the one event they were aspiring to do for the year get canceled. But at the end of the day, like you said, whether you're a larger corporation or a small event producer, this hit hard. And being able to rebound back and be someone we can count on to create events in 2021 is super important. And I hope we didn't lose any events in all this, but I think inevitably we may have. Kimo: I think so. I think that's yet to be seen, Craig. I think unfortunately, there will be some of the smaller, maybe some of the bigger ones too, that just don't make it through because that's tough to go a year without your ... You got your operating expense that you kind of have to live with throughout the year. And then you've got all your revenue comes from a single day event, typically. Craig: Totally. Kimo: It's tough. Craig: And it's not like events are these huge revenue making machines, by any means, so the margins are quite small. And if you're required to give refunds to people, et cetera, there's a lot to it. On a brighter side, you gave a lot of riders the opportunity to donate their registration fees to charities, which I thought was a great way to kind of turn the tide on this. Do you want to talk about some of the success you had with that program? Kimo: Yeah. Really good question. We did. We selectively chose a number of events and gave people the option to donate to a variety of charities. In most situations, in most markets where we do events, we also through our Life Time Foundation, we support and are implementing school, kind of an improved school lunch program across the country, and doing what we call eliminating the harmful seven. And there's seven ingredients that we believe just children shouldn't be exposed to in school lunches. And so we've now extended that. We're impacting about two and a half million kids across the country through the Life Time Foundation. And those communities, our athletes are starting to recognize that it's pretty neat what we're able to do in those communities where we host events. And so Emporia, where LeLan lives, is a good example. We've entered into an agreement with the Emporia School District. And a number of our athletes for what was DK, now to be Unbound, chose to donate their entries. We gave them the ... We guaranteed people the opportunity to get back in this next year, but they donated this year's entry fee to support the lunch program in that school district. Kimo: And it evolved from not just eliminating the harmful seven in these school lunch programs, but it actually evolved into a COVID relief type lunch program in a lot of our school districts around the country that turned into not only a COVID lunch relief, but many, many districts, breakfast, lunch, and dinner, where there were really high unemployment rates and families that were really impacted. Leadville's a perfect example. I think in total we raised almost a quarter million dollars for that school district to support their COVID relief program throughout the summer and kept feeding not only kids, but their families, where they just didn't have access because they were unemployed. So really grateful for our athletes that jumped in to help out, and it was pretty impressive. Craig: Yeah. It's a great result, considering how much corporate level trauma, with all the employees you had to furlough, and all these sort of negative things going on, to at least be able to put something positive back into the world. Kimo: Yeah, I think so. We're really fortunate and appreciative of everybody that stepped up to help. Craig: So LeLan, I know last year, DK pivoted to a virtual event. And then there was also a virtual event for Big Sugar. I don't want to drill too much into the details of the virtual event. But is there anything that you guys learned running virtual events that might be useful going forward? LeLan: Yeah. I think the biggest lesson was learning that virtual events can be really good and really useful for a lot of people. Take our camp, for example. We had a virtual training camp, and that reached over 1000 people. And it really opened our eyes to the fact that our in person events can be rather limiting when you really think about it. DK, when it was owned by us had been a lottery long before Life Time acquired us because the demand was so high. We can only fit so many people in Emporia. Well, through the, I guess, forced use of virtual events this year, we realized that on top of taking people here in town, we potentially can create meaningful op…
Full show notes at the publisher