CrossFit is up for sale (again)
Today's newsletter examines the business behind CrossFit, including annual revenue numbers, profit margins, recent transactions, and what leadership can/should do to revive the brand's image.
For the second time in five years, CrossFit is for sale. The fitness company known for its high-intensity, functional workouts announced last week that the brand has hired Moelis & Company to review a “wide range of buyers” for its “next phase of growth.”
This confirms a rumor that has been circulating for months, but let’s not kid ourselves: CrossFit isn’t holding a public auction to facilitate its next growth phase.
Founded by former gymnast and personal trainer Greg Glassman in the 1990s, CrossFit was once the blueprint for building a cult-like following. The training regimen exploded in popularity throughout the 2000s, signing up more than 14,000 affiliate gyms worldwide by 2018. These affiliates paid CrossFit $500 to $3,000 annually to license the CrossFit name, depending on when they signed up. The brand also made millions each year by requiring trainers to complete certification courses.