Pickleball Courts
The fastest-growing sport in America is creating opportunities for entrepreneurs as players vie for court space and training
Pickleball is the fastest-growing sport in the country with the number of participants increasing by 158% over the past three years according to the Sports & Fitness Industry Association. Pickleball courts provide an opportunity for entrepreneurs to capitalize on this trend, as operators can offer court rentals, lessons, equipment sales, and events.
Franchise opportunities in the pickleball court business are currently limited, as the industry is still emerging. However, some established sports franchises may offer modules or add-ons for pickleball as part of a multi-sport facility business.
Start-up costs for a pickleball court business can vary widely. They are contingent on factors like the cost of land, the number of courts, construction materials, and facility amenities. A single outdoor pickleball court can cost between $10,000 to $25,000 to build (HomeGuide, 2021). For an indoor facility, construction costs can run much higher, reaching $100,000 or more (ClearSpan, 2021). Additional start-up costs include expenses for equipment, utilities, insurance, marketing, and hiring.
Margins in the pickleball court business are typically derived from court rentals, lessons, memberships, and retail. A court rental may range from $10 to $30 per hour, while a group lesson might charge $15 to $50 per participant (Pickleball Central, 2021). It's challenging to estimate average returns due to variability in factors like pricing, utilization rates, and ancillary revenue streams. Here’s a typical P&L of a small pickleball court business (assuming 8 courts):
Revenue:
Court Rental Income: $480,000
Membership Fees: $320,000
Lesson Income: $200,000
Equipment Sales: $80,000
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Total Revenue: $1,080,000
Cost of Goods Sold (COGS):
Equipment Purchase for Resale: $56,000
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Total COGS: $56,000
Gross Profit: $1,024,000
Operating Expenses:
Rent or Mortgage: -$200,000
Wages and Benefits: -$400,000
Utilities: -$40,000
Marketing: -$60,000
Maintenance and Repairs: -$80,000
Insurance: -$20,000
Depreciation: -$60,000
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Total Operating Expenses: -$860,000
Net Profit: $164,000
A single pickleball court requires a minimum space of 20 feet by 44 feet for the court itself, plus additional space for sidelines and end lines, typically making the total dimensions around 34 feet by 64 feet (USA Pickleball Association, 2021). An indoor facility would also need space for amenities like restrooms, locker rooms, a reception area, and retail space.
When selecting a location for a pickleball court business, several factors come into play. High population areas, especially those with a large number of active seniors or sports enthusiasts, would be beneficial. Accessibility, ample parking, and proximity to other recreational amenities can also enhance attractiveness. For outdoor courts, a location with good weather conditions for most of the year would be advantageous.
Running a pickleball court business requires operational management skills and a deep understanding of the sport. Staff roles to consider include a manager to oversee operations, court marshals to supervise play, instructors for lessons, and retail personnel if selling equipment. Knowledge of pickleball, customer service skills, and a passion for promoting the sport are desirable traits for all employees.
Challenges for a pickleball entrepreneur are numerous. Weather conditions can impact outdoor court usage. Competition from other sports facilities, public courts, and home courts can pose threats. Noise issues have also been a concern with pickleball, which may lead to limitations on operating hours or require additional investment in noise reduction measures.
Equipment maintenance and replacement can also be significant, especially for indoor facilities. To remain competitive, continual investment in facility upkeep and enhancements may be required.
Despite these challenges, the rising popularity of pickleball provides an attractive business opportunity. Entrepreneurs who are passionate about the sport and skilled in business management can contribute to the sport's growth while building a profitable venture.
—Emily Bannerman