Q&A with David Gutstadt, Founder and CEO of Ballers

David Gustadt started his career at Goldman Sachs in the Real Estate group in 1998. After more than a decade at the firm, David joined Equinox Fitness and the Related Companies to oversee the development of Equinox Hotels. He is now the co-founder and CEO of Ballers, a hospitality-forward social sports brand.

David shares about his transition from finance to development and how we continues to rely on the network he forged during his time at the firm. 

How did you start your career at Goldman Sachs and what did you learn during your time here that helped you in the next phase(s) of your career?

My career at Goldman Sachs began right after I graduated from Princeton, driven by a specific desire to join the firm's real estate group even after receiving offers from other Wall Street banks. I was fortunate to secure an offer on the spot during my interview for a role in real estate investment banking.

During my decade-long tenure at the firm, nine of those years were dedicated to various facets of real estate - primarily hospitality & gaming - within both the investment bank and private equity. This extensive experience provided a deep understanding of the industries where I am still focused today. Beyond the technical expertise that I gained, my time at Goldman Sachs underscored the profound importance of relationships; many of my closest business friends and business partners today trace back over 25 years to our shared time in the real estate group. The immense power and reach of the Goldman Sachs network has proven invaluable throughout my career.

After leaving the firm in 2008, you worked at Morgan Stanley and later at Related Companies where you oversaw the development of Equinox Hotels. How was the transition from finance to development?

The transition into development from traditional finance and private equity was difficult but incredibly exciting. My role at Related Companies involved overseeing the development of Equinox Hotels, and I feel incredibly fortunate to have gone from one "gold standard" (GS) to a similar calibre firm in development. The transition marked a significant career reset, offering a fun and demanding learning experience as I delved deeply into real estate development, brand development and business development.

My ability to adapt to such a significant career shift can be attributed, in part, to Goldman Sachs's philosophy of hiring "athletes" – individuals who possess a strong work ethic, discipline, and the capacity to excel in diverse, high-pressure environments. 

You founded Ballers, a private lifestyle club, with your wife Amanda Potter who serves as Chief Creative Officer. What inspired you both to found a business in the social wellness space?

The inspiration for founding Ballers stemmed from a combination of personal experiences and a recognized gap in the social wellness market. When I met Amanda 13 years ago at Equinox, she was overseeing the design and other aspects of the fitness side of the business. Amanda and I also had a shared background in the wellness world including personal passion and involvement in sports - and tennis in particular.  From our experience with Equinox, we observed the powerful connection between hospitality and wellness and sought to create a cohesive experience that integrates various aspects of people's lives - staying well, staying fit, socializing, and building community.

Your goal is to launch 50+ new locations nationwide in the next 10 years. What are you most excited about for Ballers' future as you enter this phase of growth?

This period of growth represents the most exciting phase for the company, and we are particularly excited about the opportunity to observe how individuals react to and engage with our first locations. While the spaces are designed to guide people towards a dynamic social wellness experience, the ultimate insights will come from how consumers organically utilize the facilities. We have already received a lot of amazing feedback from customers in our beautiful new facility in Philadelphia and will be opening new locations in both Boston and Los Angeles soon.

Have you leveraged your GS network since leaving the firm? If so, how?

I have actively leveraged the Goldman Sachs network since leaving the firm and it has proven to be incredibly powerful. The connections forged during my tenure have been instrumental in all aspects of my entrepreneurial journey, including a significant source of advice and even capital investment as we launched Ballers. We have approximately a dozen Goldman Sachs alumni who have invested with us, and an equal number of our investors are former clients or individuals I met through my career at Goldman Sachs. The "Goldman Sachs seal of approval" has also been a huge benefit in raising capital from both institutions and individuals, providing a level of invaluable credibility.

Beyond fundraising, I've maintained relationships with individuals who are still at the firm. These enduring friendships provide a valuable resource for advice and feedback and the ability to continue to be able to access this pool of knowledge and intellectual capital is truly amazing and has been a consistent advantage.