Rick Caro: The Indispensable Architect of the Modern Health Club Industry

Founder, financial expert, trusted advisor, mentor, noted author, long-time friend—these are just some of the ways industry professionals describe Rick Caro.

His legacy is built not just through the institutions and businesses he founded or supported but also through the thousands he has befriended, advised, and lifted up. All who know him agree that he’s an irreplaceable catalyst who’s been a major influence in the global fitness industry for more than 50 years.

“Rick is the mastermind. The architect. The most powerful individual in the industry, bar none,” says Annbeth Eschbach, a board member of The Aesthetic Syndicate, a portfolio company of Lorient Capital. “He’s arguably the most
influential consultant in the history of the club industry.”

Eschbach has known Caro, a co-founder of the HFA (then IHRSA) and a former president of its board of directors, for 37 years.

“He’s single-handedly responsible for introducing billions of investment capital by connecting relationships with Wall Street,” says Matthew Stevens, president and CEO of The Bay Club Company, who has known Caro for 35 years.

In fact, Caro is widely credited with helping to create the modern fitness industry when he and the leaders of the National Tennis Association and the National Court Clubs Association merged the two groups to form a new association in 1981. First named the International Racquet and Sportsclub Association (IRSA), it later became IHRSA to incorporate “health,” and is now the Health & Fitness Association.

A Trusted Expert

The merger resulted after two meetings in Chicago and a third at his office in New York City, topped off with a celebration at Windows on the World, a restaurant at the former World Trade Center. The group chose John McCarthy as its executive director, a position he held until his retirement in 2006.

Caro's foresight helped to create an association that supports fitness facilities around the world, creating a stronger, more unified and successful industry. He served on the board twice, including once as president. He has also served on many other boards, including those of two major club company brands, the American Council on Exercise (ACE), and seven nonprofits.

Caro earned a B.S. from Tufts University and an MBA with distinction from New York University. He went on to own and operate a chain of eight clubs, six of which were multi-sport, in the northeast, which he sold in 1983. He also served as the chairman of Spectrum Clubs, Inc., the parent of two major club groups in Texas and California, with revenues of more than $60 million at that time.

Leveraging that experience, Caro established Managment Vision, Inc., in New York City, an industry consultancy that is respected across the globe. Since then, he has consulted with facility operators, developers, entrepreneurs, and investors, providing club valuations, market analyses, and financial guidance for thousands of fitness brands.

Tom Fiorini, CEO emeritus of the Cincinnati Sports Club in Cincinnati, Ohio, recalls that in 1995, Fiorini took over the Cincinnati club when it was hemorrhaging cash and turned to Caro for guidance. “We essentially followed Rick’s blueprint and advice, which stopped our cash bleed immediately and retired our unsecured debt—paying in full within five years,” Fiorini says.

Since then, he has consulted Caro many times. “He has completed market studies which allowed us to create master plans and pivot to meet the needs of our evolving market,” Fiorini says. “He has provided advice on debt, rent, financial ratios, facility design, programming, staffing, and is an endless source of referrals and contacts in the industry. He is very generous with his praise and is willing to suggest who else to call for advice.”

Caro has also been a resource for multiple HFA research studies. He has authored 200 articles in the industry, as well as the book Financial Management, the “bible” for the fitness business, which helped to standardize financial practices across the industry.

Bringing Major Investors Into the Industry

Caro has presented at some 400 industry events. And, for nearly three decades, he has assembled and moderated the annual Financial Panel at The HFA Show. He invites a distinguished group of investment experts to the annual convention to provide clarity on the financial state of the global industry. In turn, Caro has helped introduce influential members of the financial world to the potential of the fitness industry, breaking through concerns about its credibility and opening eyes to its numerous investment opportunities.

The financial panel’s reputation as a must-attend event continues to grow. Typically, it’s standing room only.

“I’ve attended all of them,” says Joe Cirulli, owner and CEO of Gainesville Health & Fitness in Gainesville, Florida. “It’s helpful to me as an independent operator to see where the power players are placing their bets.”

“The panel was a watershed event that significantly moved the industry forward,” says Eschbach. “This program, which he moderates beautifully, brings together club owners and investment professionals and gives industry operators/ owners a front row seat to the investment process, to valuation, and important access to these professionals.”

Stevens says, “Rick’s opinion is highly respected, and he has opened an unbelievable number of doors for countless people. The financial panel creates access where it wouldn’t otherwise exist.”

Caro has conducted market research surveys on multiple markets and coordinated endless introductions to financial sources—private equity, banking, and investment banks. Caro was also a member of an industry roundtable and developed other roundtables. He helped create the hosted buyer event SIBEC as well as Club Industry’s CEO Summit. “I’ve known Rick for well over 30 years,” Cirulli says.

“His concern is that the entire industry becomes as successful as it possibly can. Like my closest friends, you can depend on him to keep his word—and to hold everyone accountable. He can come across as serious, but it’s always great to hear him laugh.”

Long-time friends, Cirulli and Caro see each other often at an informal breakfast group that includes industry veterans Art Curtis, Gale Landers, and Geoff Dyer, among others. “We discuss industry trends, how each of us is doing, and what we’re working on,” Cirulli says. “It’s like a mini roundtable, so the ideas are flowing.”

Fiorini says Caro is not afraid to recognize others and seek advice. “More than anything else, Rick makes connections,” Fiorini says. “He opens doors, puts people together, and makes introductions—all with the intent of making the industry better. His legacy will last well beyond his lifetime.”

In recognition of his role as a visionary leader with a passion for making others better, Caro was awarded the first-ever HFA Lifetime Achievement Award in 2013. Now, the association he co-founded is recognizing his vast contributions by selecting him for the first class of inductees of the HFA Hall of Fame.

“Rick has helped to build hundreds of careers, businesses, and friendships over his life. He is a builder and a giver,” says Eschbach. “Those two qualities rarely co-exist.”