Life Time CEO Bahram Akradi asked Congress to subsidize up to 80% of the losses of his company and others that could prove they were damaged by the economic downturn resulting from the coronavirus outbreak.

Life Time operates more than 150 fitness centers in the U.S. and Canada across 41 major markets where varying social distancing restrictions have shuttered gyms for extended periods of time.

Rather than provide financial relief to companies of a particular sector or size, Mr. Akradi wrote to lawmakers on Wednesday to ask that they adopt a different approach.

I encourage you to consider a process whereby companies are authorized to identify and submit a statement of their financial losses due to COVID-19, Mr. Akradi wrote. These losses would be certified by the CEOs and CFOs of each company, and be reviewed and approved by a panel of appointed audit firms, insurance companies, or banking institutions. Once approved, the companies would be eligible to receive a non-taxable payment (similar to a business interruption insurance payment) for a percentage of their certified losses, for example, eighty-percent.

At issue is whether such financial relief would be viewed by lawmakers and the public as a bailout of failing businesses or as valid under the takings clause of the Fifth Amendment to the U.S. Constitution. The takings clause prevents the government from confiscating private property without just compensation.

Mr. Akradis argument to lawmakers advocates that companies that have already received loans and grants should not be eligible for the program he envisions, which he wants to be made available to businesses that were harmed by government-mandated business shutdowns.

Whereas the previous stimulus allowed companies experiencing little or no financial loss to obtain grant dollars, this recommended approach will deliver financial support to the companies that have truly experienced actual losses during this unprecedented crisis and have not received any meaningful relief from any of the previous stimulus programs, Mr. Akradi wrote.

As Congress debates new coronavirus spending, the Republican majority in the Senate has identified children as a top priority closely followed by healthcare and jobs. With the fall election and school year fast-approaching, lawmakers look unlikely to have an appetite for urgently addressing Mr. Akradis proposal.

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Life Time CEO wants government to subsidize 80% of its coronavirus-related losses - Washington Times