Mark Wahlberg ( Mark Wahlberg ) has founded his own companies and invested in many other enterprises as well. However, he says that this gym, which is set to open in December, excites him more than anything else he has done in his career. This gym also targets a niche market that continues to attract venture capital: the high-priced, intensive health and wellness industry.
In an interview at the TechCrunch Disrupt conference held in San Francisco on Thursday, Wolberg stated that the first Municipal Gym will open in December. This is a club located on the outskirts of Las Vegas, covering an area of 32,000 square feet, offering services such as blood testing, epigenetic testing, recovery equipment, compression therapy, and cold water immersion. In addition, there is also a café that serves foods like protein pancakes. He positions it as an affordable alternative to longevity clubs, which often charge tens of thousands of dollars per year for similar services.
This is also the second part of the plan that he began to conceive to some extent seven years ago; at that time, he started with a casual sports apparel brand.
The clothing brand was launched during the pandemic, and Walberg frankly stated, "That wasn't a good idea." Entering the clothing industry in 2020 was not wise; from J.Crew to retailers such as Brooks Brothers, many applied for bankruptcy.
This idea stemmed from his observations while serving as a fitness spokesperson for celebrities. He has collaborated with multiple brands, and other companies have also continuously approached him to ask him to be their brand ambassador, but he says that these companies seem to want the same thing. “Basically, they all just want to sell T-shirts and sports shoes. While I want to have a greater impact on people’s overall lives.”
He said that the “overall lifestyle” referred to here includes what people eat, what supplements they take, how they train, and how they recover. Clothing is just the starting point. “What we’re thinking is, well, let’s start with the clothing industry, and then expand from there,” he said. He added that he would only get involved in things that “I’m very passionate about and that are directly related to me personally.”
Even without the pandemic, running a clothing business is challenging. As we mentioned before, Lululemon has encountered quality control issues on multiple occasions. However, Walberg doesn't seem to care about that; instead, he discusses why this gym fits his vision. He believes that this "can always be very beneficial for the brand," partly because it allows people to "really feel and touch these clothes" before making a purchase. In addition, he continues by saying that the way people exercise is also "another big part of people's lives."
In this field, most companies focus on the high-end market. Fountain Life, a longevity company co-founded by Tony Robbins, raised $18 million last year to expand its centers for wealthy clients; it is reported that its full subscription service charges $21,500 per year. The Estate, co-founded by Robbins and a senior executive from the hospitality industry Sam Nazarian, is still planning its pricing model for its health center, with membership fees set at $35,000. Equinox is also accepting registrations, preparing to launch a longevity add-on service worth $36,000, which is intended to be added on top of traditional gym memberships.
Volberg stated that Municipal also wants to enter the same high-end market, but at a much lower price. “Our pricing is more competitive than our rivals’, and we will offer more significant results,” he said. For example, for just $99, one can get a three-round blood test and a one-hour consultation with a doctor to identify any possible innate tendencies. Supplements and hormone treatments are also “just there”.
When asked whether these gyms would also serve as physical stores for his other products (he owns a supplement brand), he replied, "To some extent, yes." What he really wants to create is a "health and wellness ecosystem" that "has everything in it, from start to finish."
He didn't specify how many gyms he intends to open, but said that the expansion strategy will be "very aggressive." He told us that landlords and developers who visited the Las Vegas stores for inspection have offered "AAA level locations with very favorable terms, and there are also excellent TI" (referring to tenant improvement subsidies that help cover renovation and construction costs).
Walberg's past experience in the fitness industry might deter others. We mentioned to him that we recently watched his reality show “Wahl Street”, in which an early episode showed his deep involvement with the fitness chain F45 in 2019. We wanted to remind him of what would happen next. “How did you know the pandemic was coming?” he joked, sparking laughter from the audience. In 2019, he invested $450 million in the company; F45 was famous for its 45-minute workouts. The company went public in 2021, but its stock price plummeted later on, and it was delisted from the New York Stock Exchange in 2023. Walberg says he learned a lot from that experience.
“I think the biggest gain is being able to work together with people who share the same approach to doing things as me,” he said. He has always believed that the large-chain model is the better one. The courses offered by F45 are suitable for those who are short on time, but he hopes that members will be able to spend a few hours at Municipal. He mentioned that many gyms rely on a model where people sign up for memberships but don’t actually use them, and added, “I simply can’t understand that philosophy.”
Municipal This name is clearly the result of much thought and holds great significance for Wolberg. He grew up in a poor family in Boston, with nine siblings. As a child, he often played basketball and golf on public courts. “You learn a lot on the street courts,” he says, “you learn to win, to lose, to compete, and also to get back up and try again.”
He never hides the hardships of his teenage years. (He was sentenced to two years in prison for assault as a teenager, but actually served only 45 days.)
In fact, earlier on Thursday afternoon, in a rest area backstage, Wolberg was surrounded by friends and business partners. After all, the man who inspired the TV series “Entourage” said that he was “put back on track” by two people, including Father Jim Flavin from the Boston area, who has been by his side since Wolberg was 13 years old.
He hopes that these gyms can also continue this spirit. “This is a place where one can work, enjoy fun, support each other, build a community, and truly challenge oneself to become a better version of oneself,” he says. This is a very personal matter for him, and he speaks frankly: “I have come from almost nothing to the amazing position I am in today.” Wolberg says, “I will constantly remind myself that I can inspire those who have had similar growth experiences to mine, especially children in cities and young people at risk, to let them know that as long as they are willing to take action and put in the effort, there is a way to change their circumstances.”
He added that at the age of 55, his goals had changed; in the past, he focused on his appearance. “Now I just want to feel good every morning when I wake up,” he said. “I want to be able to accomplish everything I plan to do that day.”
He said that he already has a lot on his plate right now, including this gym, a movie role playing Pete Rose, and his daughter's equestrian career. He is very excited about the opening of the gym, to the point where visiting the construction site feels “as boring as watching paint dry.” When asked if he would be willing to take on new projects again, he shrugged and said, “I definitely won’t be looking for the next project everywhere.” But he quickly added that he wouldn’t completely rule out that possibility either. “If there really comes up a great opportunity, obviously I wouldn’t refuse it.”
