Guess what, pickleball has a sexy older cousin that is just starting to edge its way into the U.S. market. In my year-end post for 2023, I mentioned Padel (pronouced ‘pah-DEL’ or ‘paddle’) as something to keep an eye on. If you don’t know what Padel is, be sure to visit YouTube and watch some points. Played in an enclosed plexiglass space (foot print slightly larger than a pickleball court) it is a fast, athletic, vibrant mix of pickle, squash, and paddle (platform) tennis. While anyone can play, it seems the highest appeal will be to younger, athletic racket sports junkies.

Is Padel the next pickleball as some seem to think?

Maybe, but let’s do a quick sanity check. While there are thousands of courts in Europe and the Middle East, there are 300 Padel courts in the U.S. —- for comparison, there are 40,000+ pickleball courts, and 250,000+ tennis courts. Padel has a rabid following in a few select spots, but also has some limiting factors. Courts are way expensive to build, and unlike pickleball, no one has learned in a free environment. I just visited a Padel club in Connecticut that charges $200 per hour for non-members ($120 for members). The Washington Post recently published an article called “Behind the push for Padel, Pickleball’s posher, privileged cousin”

……..the popularity of padel has exploded within the VIP section: on Manhattan’s Billionaires’ Row, in Hudson Yards, on Miami Beach, on the grounds of private Hamptons estates, and in exclusive resorts from the Maldives to Monte Carlo……but for padel to grow in the United States, for it to become more than a networking fad for the super-rich, for it to ossify into the American sports psyche, it must democratize.

Washington Post, January 9th, 2024

Pickleball Club or Padel Club or Hybrid Club?

If you have the capital to build a club, there is no question pickleball has tremendous appeal: millions already love it, there is a huge shortage of courts, all ages play it, all signs point to continued growth, and there are multiple examples of established successful pickleball businesses. The only real threat that I can see is the specter of dramatically increased competition from new private clubs, franchises, and municipal / public pickleball projects.

Padel on the other hand is newer and has much less competition, but in my opinion has a narrower appeal than pickleball because of a) the athleticism required and b) the cost to play. One way to hedge might be to integrate the 2 into the same facility. I like the idea of generating $150 per hour from space that is getting $40 from pickleball, and pickle might be a good ‘feeder’ sport to build a Padel following.

Conclusion

In my opinion there is no question that as of today, building a business around Padel is a much riskier proposition than pickleball. I have always favored building fitness businesses by getting in early….but not too early. I like the idea of launching based on a proven existing model and an established market. In most industries, for every Padel-type market that ends up exploding, there are 3 others that have early cult followings but never materialize. Would I invest heavily in a Padel-only business model at this juncture? No. With some further research, and if I had the right space, would I experiment with Padel as a piece of a larger pickleball business? At this point, I think I might. In any event, as I mentioned in that earlier post, Padel is definitely worth tracking

Pickleball Business Advisors is brothers Bill and John Pryor. We provide a variety of consulting services based on extensive experience in fitness business development, and research into the fast growing pickleball marketplace. To initiate a feasibility assessment for your pickleball club, or for other consulting, contact us so we can learn about your project.