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Pickleball has exploded in popularity across the U.S.
The fast-paced paddle sport bagged the title of the fastest-growing sport in the world for three consecutive years between 2020 and 2023, growing by 223.5%, according to the 2024 Topline Participation Report published by the Sports & Fitness Industry Association (SFIA). Between 2022 and 2023 alone, the sport grew by a whopping 51.2%.
Celebs are cashing in on this trend, buying up teams as the nascent industry forms professional leagues in which the teams compete annually.
But there’s another way for investors to get started — investing in pickleball arenas.
“There’s a gold rush mentality going on right now with a lot of different brands jumping in and competing for space,” said Ace Pickleball founder and president Joe Sexton.
Companies are racing to grab available spaces to set up pickleball courts, and you can get in on the action, too, as a passive investor.
What’s fuelling the fire?
Pickleball has been the sport of choice for many Americans, with roughly 13.6 million “picklers” in the U.S. as of 2023.
According to a report from the Association of Pickleball Professionals (APP), 48.3 million adult Americans (19% of the adult population) have played pickleball at least once in the past year.
America’s premier athletes are capitalizing on the “pickleball gold rush,” with A-list athletes and celebrities like LeBron James, Tom Brady, Drake, Eva Longoria, and Michael B. Jordan investing in pickleball teams. There are at least 38 celebrity pickleball enthusiasts, with many investing in professional pickleball teams as the sport quickly ramps up its ecosystem of professional-level play.
Tom Brady teamed up with tennis champion Kim Clijsters to buy an expansion team through Knighthead Capital Management.
"Look, I’ve been trying to find a way to extend my professional sports career, in my 40s, even into my 50s, 60s, 70s! As long as I can, right? And I think I got the answer," Brady, the seven-time Super Bowl Champion, said on Instagram back in 2022, "Seems like everyone else has the answer too — pickleball!"
But you don’t need to be a nationally-recognized sports star or celebrity to ride the pickleball wave.
You can get in on the ground floor of this growing industry by investing in the places people play.
Step into the pickleball arena as an investor
If you want to get in on the action but don’t want to deal with the hassles and financial obligations of owning or leasing a franchise, you can look into fractional investing in a Pickleball club.
Accredited investors can potentially earn attractive returns through passive ownership of pickleball courts through PickleRage.
PickleRage aims to deliver 21-25% returns over a three to five-year hold period. They estimate the value of the properties will grow 1.75 to 2.25 times the original principal invested.
Backed by private equity firm GreenPeak Venture Partners, PickleRage has a distinct advantage over other pickleball franchises popping up across the country.
“What we do and how we differentiate ourselves is being a real estate owner and developer,”
Eric O’Connor, vice president of franchise development at PickleRage, told the Franchise Times.
“That’s our expertise, along with the automation technology we’ve incorporated into the system that makes court reservation, scheduling, and overall operations much easier for operators by maximizing efficiencies and revenue per square foot.”
An underserved market
It might seem as though there’s a new pickleball court opening every day, but space for this fast-growing sport is actually at a premium right now. There are currently just over 50,000 courts serving over 13 million picklers across the U.S.
PickleRage is on track to open 50 clubs by next year, primarily in Michigan, Florida, Texas and the Carolinas. These regions have highly trafficked retail corridors with strong income demographics, potentially generating substantial membership revenues.
As the number of pickleball enthusiasts continues to grow unabated, estimated to reach 40 million worldwide over the next six years, CNBC forecasts that an additional 250,000 courts need to be built to meet the demand.
PickleRage aims to capitalize on this trend by building more than 500 courts nationwide over the next five years.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
