How To Invest In Pickleball
Updated May 22, 2024
Are you wondering how to get a slice of the rapidly growing pickleball market? The sport has seen an 85.7% increase in participation year-over-year, making it one of the fastest-growing sports today.
This post will guide you through various investment opportunities in the pickleball industry, from owning a franchise to investing in equipment companies. Get ready to serve your financial future!
Understanding Pickleball as an Investment Opportunity
Pickleball’s popularity is on the rise, making it an attractive avenue for investors. With a participation increase of 85.7% year-over-year and an impressive jump of 158.6% over three years, this sport has captured the attention of enthusiasts and investors alike.
The global market for pickleball is also expected to grow significantly, with projections indicating a compound annual growth rate (CAGR) of 10.19% over the next five years, reaching $2.36 billion by 2028.
Investors find diverse opportunities within the world of pickleball that appeal to various interests and investment strategies. Options range from franchising facilities to backing professional teams in Major League Pickleball or investing in equipment companies thriving on this trend.
Two notable entities benefiting from this surge are Life Time Group Holdings (LTH) and Skechers (SKX), both highlighted as top stocks riding the wave of pickleball’s increasing popularity.
This variety offers multiple entry points into the market, whether through direct investments in sports infrastructure or through equities, paving diverse paths toward capitalizing on pickleball’s booming growth.
Key Statistics on Pickleball Growth
Pickleball has experienced remarkable growth, with a surge in popularity across all age groups. The game’s appeal has expanded regionally and is now played in all 50 states, with notable facilities and courts increasing throughout the country.
Growth Statistics and Demographics
The surging popularity of pickleball is evident in its impressive growth statistics and demographics. Here’s a closer look at how this sport is expanding across different metrics:
| Statistic | Details |
| Year-over-Year Participation Increase | 85.7% |
| Three-Year Participation Increase | 158.6% |
| Fastest Growing Demographic | Players under 24 years old |
| Compound Annual Growth Rate (CAGR) | 10.19% over the next five years |
| Market Value Projection by 2028 | $2.36 billion |
Such data highlights the sport’s escalating appeal and its burgeoning market potential. Younger players are especially drawn to pickleball, fueling its expansion. Additionally, the projected market value and growth rate indicate a robust future for investments in this area.
Regional Growth Statistics
Pickleball is experiencing significant growth across various regions, highlighting its expanding popularity and investment potential. Below is a detailed look at the regional growth statistics in a concise HTML table format.
| Region | Total Participants | Interest in Indoor Courts | Interest in Outdoor Courts | States with Over 1000 Courts |
| South Atlantic | High | Growing | Growing | Multiple |
| East North Central | High | Growing | Growing | Several |
| Pacific | High | Growing | Growing | Several |
| Mid-Atlantic | High | Growing | Growing | Multiple |
This table encapsulates the burgeoning interest and participation in pickleball, underscoring the sport’s growth not just in specific areas but across a wide range of regions. It also points to the increasing demand for both indoor and outdoor courts, which can serve as a crucial piece of information for potential investors.
Growth in Facilities
The growth in pickleball facilities showcases the sport’s rising popularity. Various types of facilities have emerged, ranging from small micro facilities to expansive multicourt complexes.
| Type of Facility | Description | Examples |
| Micro Facilities | Small-scale facilities, often converted from tennis courts or other existing spaces. | Local community centers, parks. |
| Multicourt Complexes | Large dedicated pickleball facilities featuring multiple courts, often with amenities like pro shops and cafes. | National Pickleball Centers, large sports complexes. |
| Hybrid Facilities | Facilities that offer pickleball among other sports, providing a diverse range of activities. | Life Time Fitness locations, multi-sport centers. |
Facilities have become a cornerstone for players, ranging from beginners to professionals competing in major leagues and tours. The variation in facility types accommodates a wide audience, encouraging more individuals to participate in the sport.
Who is Investing in Pickleball?
LeBron James and his investment group have purchased a Major League Pickleball team. The high-profile investors in Major League Pickleball also include Tom Brady and Kevin Durant. Additionally, Marc Lasry, along with former tennis star James Blake, has invested in a Major League Pickleball team, solidifying the interest of influential figures in the sport’s growth and potential as an investment opportunity.
Top Ways to Invest in Pickleball
Consider franchising a pickleball facility to tap into the booming market. Another option is investing in equipment companies, such as those producing high-quality pickleballs and paddles.
Franchising a Facility
Franchising a facility associated with pickleball presents a compelling investment opportunity. Companies such as Pickleball Kingdom, American Pickleball Association, The Picklr, Ace Pickleball Club, Swing Courts, The Pickleball Club, and The Real Dill Pickleball Club offer franchise options for potential investors.
Costs to invest in a pickleball franchise range from $25,000 to $2.09 million.
Investors have the option to evaluate the financial prospects of each franchise and consider how they align with their investment goals and available capital before making an informed decision on this avenue of investing in pickleball.
Investing in a Pro Team
Transitioning from franchising a facility to investing in a pro team, individuals have the opportunity to leverage the growing popularity and market potential of pickleball. Investing in a pro team can provide various avenues for financial gain and community engagement.
As the sport gains traction across different demographics, this investment option offers an avenue through which individuals can align their financial portfolio with their sporting interests.
Investing in a pro team associated with pickleball offers various opportunities for individuals of all income levels and interests. The popularity of pickleball continues to grow, creating more avenues for investment in the sport.
Investing in a Tournament
Transitioning to investing in a tournament, the US Open Pickleball Championships stands out as a premier opportunity. With over 3000 players participating in 2022, this event represents substantial growth and investment potential.
As one of the largest and most prestigious tournaments, it provides an ideal platform for sponsors and investors to align with the rapidly growing sport of pickleball. The increasing popularity of pickleball among diverse demographics further solidifies the tournament’s position as a lucrative avenue for investment.
The expansion of Major League Pickleball (MLP) from 12 to 24 teams in 2023, attracting high-profile investors such as Tom Brady, LeBron James, and Kevin Durant reflects the significant opportunities that tournaments offer for both player participation and investor engagement.
Investing in an Equipment Company
Skechers (SKX), the official sponsor of pickleball, presents a compelling opportunity for investors. With its involvement in major pickleball tours and organizations in North America, Skechers stands at the forefront of the sport’s growth.
As an investor, tapping into this trend by investing in Skechers can be a strategic move. The growing popularity of pickleball has led to increased demand for equipment and apparel associated with the sport, translating into potential financial gains for those investing in equipment companies like Skechers.
Investing in pickelball-related equipment companies such as Skechers presents a lucrative opportunity as the sport continues to gain traction globally. Companies aligned with increasing interest in pickleball are well-positioned to benefit from its rising popularity and commercial opportunities.
Investing in Training Systems and Apps
To further capitalize on the growth of pickleball, investing in training systems and apps is crucial. With the sport’s increasing popularity, there are opportunities to invest in apps which offer features such as finding courts, training routines, ranking tracking, and scorekeeping.
Pickleup, PicklePlay, and Pickleball Now are specific apps that can be considered for investment in training systems associated with pickleball. They cater to the growing interest and participation in the sport.
Investing in these systems is essential for the development and growth of pickleball on both a local and global scale. It not only adds value to players but also contributes significantly to enhancing their overall experience within this fast-growing sport.
Investing in Publicly Traded Stocks
Transitioning from investing in training systems and apps, another avenue for potential investment within the pickleball industry lies in publicly traded stocks. Understanding that both LIFE TIME GROUP HOLDINGS (LTH) and Skechers (SKX) are buy-rated stocks with a strong presence in the pickleball market, investors can consider diversifying their portfolio to tap into the growth potential of this emerging sport.
With plans to add more pickleball courts and increase membership, these stocks present viable options for investors looking to capitalize on the upward trajectory of pickleball’s popularity.
Consequently, prudently considering investments in publicly traded companies associated with pickleball may provide valuable insights for those seeking long-term financial success in this burgeoning market.
Examining Specific Investment Opportunities
Life Time Group Holdings and Skechers are two notable investment opportunities within the pickleball industry. These companies present unique prospects for investors looking to capitalize on the sport’s growth and popularity.
Life Time Group Holdings
Life Time Group Holdings (LTH) operates a vast network of over 160 athletic country clubs across the U.S. and Canada, making it a major player in the fitness and recreational industry.
Boasting the largest network of pickleball courts in the country, LTH is actively expanding its pickleball offerings and strategic placement of additional courts to meet increasing demand.
In terms of financial performance, LTH has reported impressive results with revenue surging by 21.8% to $561.7 million compared to the same period in 2022, accompanied by net income skyrocketing to $17.0 million.
Skechers
Skechers, an American footwear company, has secured its position as the official sponsor of pickleball. With a focus on major pickleball tours and organizations in North America, Skechers plays a significant role in advancing the sport’s popularity.
In recent reports, Skechers announced record quarterly sales of $2.01 billion with a notable year-over-year increase of 7.7%. This involvement with specific investment opportunities related to how to invest in pickleball underlines the brand’s commitment to growing alongside this burgeoning market.
Now let’s explore another pivotal aspect impacting investments in Pickleball – “Life Time Group Holdings”.
Conclusion
Exploring investment opportunities in pickleball offers diverse options. Franchising a facility, backing a pro team, or investing in equipment companies are some avenues to consider.
Skechers and Life Time Group Holdings represent promising stock investments. As the sport’s popularity grows, there is potential for lucrative returns in this emerging market.
