Pickleball is an increasingly popular sport in America, with millions of players and growing professional leagues and tournaments. As the pickleball industry expands rapidly, many investors are looking into opportunities to invest in pickleball teams and businesses. In this article, we will explore the booming pickleball market, the potential returns and risks of investing in pickleball teams, and tips for investing successfully in this emerging industry. With proper due diligence and strategic planning, investing in pickleball can offer attractive financial rewards for investors who act at the right time.
Evaluating the potential and profitability of the pickleball market
Pickleball’s growth has been explosive – nearly 5 million Americans played pickleball in 2021, up 39% from 2019 according to the Sports & Fitness Industry Association. This growth is driving construction of dedicated pickleball courts and facilities. The number of pickleball venues in the U.S. has doubled since 2018 to over 8,000 today. Television broadcasts of pro pickleball tournaments began airing last year. Major athletic brands like Wilson and HEAD have launched pickleball gear. The popularity of pickleball spans wide age demographics as both millennials and baby boomers embrace the sport. With this momentum, the pickleball economy is projected to grow at a compound annual rate of 12.8% from 2022-2027, reaching $5.23 billion by 2027 according to one report from Grand View Research. Astute investors recognize the potential for profitable returns by investing early in the rapid growth of the pickleball industry.
Assessing investment opportunities in emerging professional pickleball leagues
The professional side of pickleball is gaining traction with the creation of new leagues and major media deals. The Professional Pickleball Association (PPA) was founded in 2018 and has expanded to over 4,000 members today. In March 2022 the PPA announced a partnership with ESPN to broadcast competitions, a major milestone in pickleball’s path to becoming a premier professional sport. Another pro league, Major League Pickleball (MLP), launched in 2021 with high-profile team owners including basketball legend LeBron James and Super Bowl champion Drew Brees. MLP has inked deals with CBS Sports to broadcast matches. As pickleball viewership grows, advertising and sponsorship opportunities will multiply. Investors can look to buy ownership stakes in new leagues and teams now, before valuations rise exponentially in the future.
Investing in pickleball equipment and facility startups
Beyond pro leagues, there are investment opportunities across the broader pickleball economy. According to the USA Pickleball Association, Americans spent $125 million on pickleball equipment in 2020. As more casual players take up the sport, sales of paddles, balls, nets, and shoes will increase steadily. Pickleball requires minimal equipment for beginners, making it an affordable sport with low barriers to entry. Investors can target startups specializing in pickleball gear and apparel. Another area primed for growth is pickleball venues and facilities. Constructing permanent pickleball courts and complexes is a capital-intensive endeavor, providing opportunities to invest in development projects and receive attractive returns from court rental fees. With communities across America demanding more pickleball facilities, this niche promises to deliver sustained profits.
Considering risks – competition, market saturation, other factors
While pickleball’s rise seems promising, there are always risks to assess before investing substantially. As pickleball gains prestige, it will attract more competing sports leagues and equipment companies. Standing out in a crowded field will require strong branding and product differentiation. There is also the possibility that pickleball’s popularity will plateau or decline once the initial growth phase cools off. Prudent investors will review market data carefully to determine if saturation is approaching. Furthermore, broader economic trends like interest rates and inflation can deter recreational spending on pickleball and thus negatively impact the industry. Investors should incorporate these macroeconomic risks factors into financial projections. However, the overall upside potential still appears to outweigh the risks for well-planned investments in pickleball.
With pickleball’s meteoric increase in players and status as America’s fastest growing sport, the emerging pickleball industry presents lucrative opportunities for savvy investors. But proper due diligence must be undertaken to identify the most promising investment targets with lasting growth prospects and limited downside risks. Investing early in pickleball’s rise can produce outsized financial returns, but investors need a thoughtful strategy tailored to this unique market.