Owning a padel court: Is it worth the investment?
Have you ever caught yourself dreaming about turning your love for padel into a business? Maybe you’ve wondered if owning a padel court could be your ticket to easy money or your next big entrepreneurial move. We’ve taken a deep dive into the numbers, challenges, and opportunities; here’s what we found.
The Cost of building the court
Building a padel court requires a significant upfront investment. For a single court, construction typically costs around R1mil (GBP 43,000), covering essentials like turf, glass walls, fencing, and lighting. Indoor courts require additional costs, around R380k (GBP 15,500) for roofing and R430k (GBP 17,00) for preparing the concrete base. When factoring in all these elements, the total investment for a high-quality court can exceed R1,8m (GBP 75,000).
Operating Costs
Running a padel court comes with recurring costs that you’ll need to manage carefully. Indoor courts incur weekly lighting expenses while maintenance is another significant factor, with turf replacement costing at least R85,000 (GBP 3,500) every few years. Staffing costs, such as hiring reception or cleaning staff, also contribute to your monthly expenses.
Revenue Potential
Once your padel court is operational, court bookings will likely become your primary revenue stream. In South Africa, hourly rates typically range from R300 to R500, while in the UK, rates vary between £20 and £50, with London-based courts commanding the higher end of the scale. These rates should be carefully balanced against operational costs to ensure a healthy profit margin.
Many courts also generate additional income through cafes and club shops, which can vary significantly based on the scale and offerings. The trend towards creating vibrant social spaces—complete with bars, cafes, and lounge areas—is becoming increasingly popular, offering a great way to attract and retain players while boosting revenue.
Making a profit
Breaking even and achieving profitability depend on a combination of factors, including your total upfront investment, operational costs, and average daily bookings. For a single court, consistent bookings—especially during peak hours—are essential. With at least four hours of peak bookings per day at R500 (GBP 20) per hour, the court could generate R62,000 (GBP 2,500) per month from peak times alone. Adding revenue from off-peak bookings and any supplementary income (e.g., coaching or retail sales) accelerates the timeline.
Assuming steady bookings, a court generating R65,000–R70,000 (GBP 2,5-3k) monthly could cover operating costs and start recouping the initial investment of R1.8m (GBP 75,000) within 2.5 to 3 years. However, this timeline can vary depending on local demand, marketing efforts, and how well off-peak hours are utilised.
Challenges to Consider
Owning a padel court comes with its challenges. One of the most significant hurdles is securing an affordable and suitable location. Rent is often the largest expense, so it’s crucial to keep it at no more than one-seventh of total revenue to maintain profitability.
Filling off-peak hours is another common issue. Offering discounts, running league events, or targeting corporate bookings can help improve court utilisation during quieter periods. Finally, building a loyal player base requires effort. Hosting tournaments and social events can foster a sense of community, making your court a preferred destination for players.
Opportunities for Growth
Owning a single padel court can pave the way for additional opportunities. Coaching is a great way to generate extra revenue while filling off-peak times. In addition, Retail sales of racquets and balls can provide supplementary income
The long and the short of it
While the upfront costs may be substantial, the rapid growth of the sport presents an exciting opportunity for strong returns. In our view, the key to success lies in choosing the right location, fostering a vibrant and welcoming community, and creating buzz through events and gatherings that would make your padel centre a go-to destination.
Are we missing anything in the findings? Leave a comment below.
Have a good week!
Jacques
