Should SoulCycle Cancel Its Investors?
Have you ever heard of NPR’s podcast, “How I Built This?” It is one of our favorites. It tells the story of how some of the most common and biggest brands of today got started. The reporter, Guy Raz, talks with innovators, entrepreneurs and idealists on their background – and even more important, the movements they started. Some of our favorites have been interviews with Cathy Hughes of Radio One, Clif Bar’s Gary Eckerson, and the founders of SoulCycle’s Julie Rice and Elizabeth Cutler.
Last week, SoulCycle (and big sister brand, Equinox) found itself in the midst of a PR nightmare. While the brand is known for being a leader when it comes to championing diversity and inclusion, current investor and real estate developer Stephen Ross held a fundraiser in support of Donald Trump. The outrage from Soul’s dedicated riders, clientele and fans was swift.
Background
Ross is the chairman and majority owner of The Related Companies, a global real estate development firm. He is also the principal owner of the Miami Dolphins, Hard Rock Stadium. His company developed the Time Warner Center in New York City and is currently developing the Hudson Yards project in Manhattan.
Hosting a workout with friends at SoulCycle’s Buckhead studio in Atlanta, GA
On the opposite end of the spectrum, Soul’s original founders were two women who met by chance and decided to take a risk on something they loved. Cutler realized the hiking and running with friends was a release from her hectic work life and a communal experience she shared with friends. After meeting Rice, the two women set off to establish a business and community centered around cycling. The ladies wanted to bring “pride, joy and empowerment to people in a way that felt fun, social, chic and inspirational.” After five years of building Soul from the ground up, both ladies sold their stakes in the company to Equinox. They wanted to ensure the business could be scaled. And it was. They went from eight studios in 2011 to over 75 studios by 2017.
The Fallout
As news circulated around Ross’ fundraiser, SoulCycle and Equinox both took swift action. In the past week, they have both released statements standing firm in their position of supporting diversity and championing for the LGBTQ community – calling Ross a passive investor. Some of our favorite instructors (like Cat G, Liz Chestang, and Kamelle Mills) used their voice and social presence to defend the brand while rallying against Ross. SoulCycle took it one step further by giving each of its 350 instructors the opportunity to host community rides, where a portion of the proceeds would go back to the charity of their choice. But is this enough?
SoulCycle has built itself as a place of refuge, a place where every person can bring their whole self to their bike. For the 45-60 minutes you ride, all that matters is how hard you try, how far you push yourself, and cheering on those around you. The corporation has been fully aware of who their investors and board members are before this fundraiser happened. The corporation is also fully aware of who its instructors are, who their clients are, and how vocal and compassionate their community is. Shouldn't they have pushed for the removal of this Ross all along? Is it okay that the company waited until the media attention to double down on their mission?
Soulcycle’s mission is no secret. It’s displayed in just about every studio, as pictured here in Manhattan Beach
Where Do We Stand?
To be honest, there's a lot to unpack here. We've both taken classes at various SoulCycle studios across the country. We've hosted multiple rides for friends and have applauded the brand for the way it stands boldly with the LGBTQ community. So for us, this news hits a little different and leaves us with a lot more questions. Why didn't the company speak out against Ross, or any other investor or board member, that didn't align with its mission before now? How much do we value where the money comes from if we are getting the experience we desire? What will be the impact of a boycott on a multi-million dollar company?
We acknowledge the investors, board members, and founders that helped launch SoulCycle in 2006 are not the investors the company has now that it has been acquired. So, will we boycott? We haven't fully decided. We do believe to boycott Stephen Ross would mean boycotting each entity associated with him, not just two of the brands across his portfolio. We think the larger question begins a lengthy dialogue. What happens when your investors don't align with your company's values and mission?
We want to continue this conversation with you. Hop over to IG, or leave us a comment below with your thoughts. Will you still continue to tap it back and book your bike? Or, is your support for the brand on hold?