Sol Sports Invest complete Padel Courts deal

Sol Sports Invest are excited to announce a deal between our local Padel court manufacturer and Aspria Holdings, operator of eight member clubs for culture, business, sport and well-being in continental Europe.

Installation of a total of 19 padel courts within the newly acquired K7 Club (Valencia), Roma and Hamburg are underway.

We take this opportunity to outline the opportunity for potential investors within the Padel courts business, what to consider when searching for a suitable location and other factors that contribute to a successful venture.

Growth & Opportunity of Padel in Spain

In the last five years, padel has become one of the fastest-paced sports on a global scale. Investment funds have begun to position themselves in a sector that will invest 1,000 million euros in building courts between 2022-2025, according to the Global Padel Report, prepared by Playtomic and Deloitte.

In Europe alone, the number of padel courts is expected to double over the next three years, increasing from 31,400 courts in 2022 to 66,900 in 2025.

Why has Padel become so popular?

Among the reasons that explain this popularity are:

  1. How easy it is to learn and play in comparison with other popular sports such as tennis, badminton or golf.
  2. Players of all ages can play, with less time to complete a game than other sports
  3. The social aspect makes it a fantastic way to meet new people and expand your social circle.

 

Investment Capital

The need for capital to lead this expansion process has made it an attractive sports asset to invest in.   There have been numerous mergers and acquisitions witin the padel business and we see this trend set to continue as the padel market becomes even more competitive.

Within the twelve main countries In European markets there is on average one court for every 15,000 people, a ratio with a large growth margin when compared to that of more mature markets, like Spain or Sweden, where there is one court for every 3,500 people.

Why Padel is currently considered a leading sports asset investment

  1. Padel courts require less maintenance than tennis courts, golf courses or gyms (in which you have to constantly fix machines).
  2. They take up less space than tennis courts and much less than football pitches or basketball courts.
  3. Almost anyone of any age can play padel, increasing the player pool
  4. Padel matches usually last 60-90 minutes increasing the opportunity for a higher turnover of players on a court

With the continued expansion of padel manufacturing and installation, the short-term investment is very encouraging, although, manufacturers, Clubs and centres will be aware of the potential scenario that occurred in Sweden with the over-saturation of padel courts leading to many centre closures.

Padel court income per court

Each court costs an average of € 30,000-35,000 € including transport and installation.

Revenue generated per year on a basis of 70% occupancy = 59,000 € approx.

 

When choosing a location for padel courts

A few basic questions when considering starting a padel club or acquiring an existing Club

  1. How many potential customers are there in the area? (considering padel players tend not to travel too far for a game of padel as would golfers, tennis players etc)
  2. Is it well connected with other towns or larger cities?
  3. Are there  padel courts already established in that area?
  4. Are they successful?
  5. Leasing or purchase? The key is to negotiate a good deal on the purchase of a centre, Club, warehouse or land, whether it be from a private owner, group or bank.   Now has never been a better time to negotiate on commercial real estate with banks and private owners struggling to rid of vacant space.

Other factors to include when considering starting or investing in a Padel courts

  1. Is there Bar/restaurant area and co-working space within the centre to create a lively social scene that can be used for both leisure and business purposes?
  2.  People tend not to travel long distances just for a game of padel.
  3. Is there an opportunity and enough scope to partner with schools, universities, councils and other Clubs to encourage private and  group classes?

There is no doubt that the padel boom will continue for several years and an exciting industry to be involved with.   With the right location, proper management and marketing team in place and thorough due diligence, padel centres can survive and thrive long-term.

Contact the Sol Sports Invest team today for a non-obligation quote for Padel courts and for further information on suitable centres and sites to invest in.

rpe@solsportsinvest.com / +34 607 375 234 (WhatsApp)

 

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