Private clubs: lessons for festival founders and membership design

The model of private clubs is simple: you make money by selling who enters, not just the service. This article explains how the same logic of scarcity and network is also driving the consolidation of major European festivals. It also provides practical guidance for Italian founders, operators and investors who design memberships or experiential products.

Why private clubs sell people, not pools (private clubs)

The value of a private club comes from the quality of the network it gathers: it’s not the pool but who you find at the edge. The Arts Club in Mayfair charges £3,200 a year plus an entrance fee of £1,600. The under-33 category costs £1,500. These figures signal selection and rarity. Wellness offers like Surrenne, the health & lifestyle proposition inside The Emory, combine spa and medical services. These services aim to turn membership into a lifestyle.

Soho House has shown the limits of this model at scale. The group had about 214,000 members under its brand. The broader platform reached roughly 270,000 users. The Every House option was priced around $5,400 per year. Expansion increased recurring revenues but also created tension around exclusivity. The group was later bought back in a $2.7bn transaction. The practical lesson for a founder is: recurring fees provide predictability, but uncontrolled growth can erode the reason customers pay.

The value arises from the quality of the network. Membership value comes from network quality and selection.

Scale, integration and the cost of homogenization

The concentration we see in festivals is the same search for purchasing power and diversification that drives private clubs. Superstruct was founded in 2017 and grew to more than 80 festivals in ten countries. The company was then acquired by KKR in a deal valued at about €1.3bn. The idea is to mitigate seasonal risk by aggregating events. The group negotiates artists and supplies centrally.

Live Nation represents the most complete vertical integration. In 2025 the group reported $25.2bn in total revenues. Of that, $20.9bn came from concerts. Another $3.1bn came from ticketing. Ticketmaster sold about 346 million tickets on which it applied fees. CTS Eventim combines ticketing and promotion. The company reported over 1,000,000 attendances in the first part of the European season. The Rock am Ring livestream exceeded 50,000,000 views. These figures explain why whoever controls the stage, the ticket and sponsorships captures additional margin.

Whoever controls the stage, the ticket and sponsorships captures additional margin.

The flip side is loss of identity. In 2025 some festivals affiliated with Superstruct faced boycotts due to controversial financial ties. In the United Kingdom 36 festivals had been cancelled by August 2026. Multi-day event tickets are now commonly priced between £200 and £380. Some full packages exceed these figures. Forty-five percent of camping tickets go through payment plans. The result is a market split between highly scaled events and fragile others. Uncontrolled expansion can erode exclusivity and cultural identity.

Rules to grow without losing the soul

Growing with external capital requires clauses that protect identity. Founders must negotiate voting rights over brand positioning. They should include clauses that limit the number of members or the type of offers. It is useful to obtain guarantees on maintaining programming. In practice, capital yes, total surrender no.

From an operational point of view, three KPIs help measure health. Measure membership churn, ARPM (average revenue per member) and revenue per event or per operating day. A tiered pricing plan avoids homogenization. A base tier preserves critical mass. A premium tier protects rarity. Strategic partnerships for supply chain and lineup allow discounts on artists or suppliers. These alliances reduce costs without selling control of the brand.

Governance must also include reputational limits. KKR and other investors bring resources. They can however transfer controversies to the acquired properties. Non-association agreements and withdrawal rights on sensitive decisions are concrete precautions. On the health and wellness front, some brands demonstrate value by integrating diagnostics and longevity. This integration can increase visit frequency and make the membership more defensible.

Capital yes, total surrender no. Founders must retain voting rights over brand positioning.

Those who build experiences in Italy can therefore replicate the market logic. Monetizing access and diversifying revenues are key steps. Protecting the community remains fundamental. The open question is how much external capital is sustainable before identity becomes negotiable. The answer depends on written agreements, governance and the founder’s ability to keep selection as a product. The next step will be to see whether the ecosystem returns cultural diversity or yields the field to whoever owns the stage, the ticket and the guest list. Protecting the community is fundamentally necessary for longevity.

Sources:

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