The business of padel | FT Scoreboard

Summary

Padel, a fast-growing sport combining elements of tennis and squash, is gaining popularity globally, with the UK and US markets experiencing a post-Covid boom. Originating in Mexico in the 1960s, padel is now a €2 billion industry expected to triple in size. Entrepreneurs and investors are capitalizing on this trend, establishing clubs and online platforms like The Paddle School to teach and promote the sport. Despite challenges like space and planning restrictions, the demand for padel is surging, with courts worldwide projected to double by 2026.

Takeaways

• 🏆 Ground zero for padel, one of the world's fastest-growing sports, is being developed in east London by a Swedish entrepreneur.
• 🏢 The entrepreneur plans to build London's biggest padel center with six courts in addition to the main center court.
• 🚀 The first club, Rocket Padel Bristol, established post-Covid, is the largest in the UK with 14 courts.
• 🌍 Padel's growth bottleneck is securing proper club locations; however, once established, landowners become more proactive.
• 💰 Profitability for padel clubs is achievable within three to six months of operation.
• 🎾 Padel, invented in the 1960s by a Mexican businessman, is a mix of tennis and squash, typically played in doubles.
• 🌐 The sport is popular in Spain and Argentina and is now gaining attention in the UK, US, France, and Germany.
• 💸 Padel is estimated to be worth around 2 billion euros annually globally and is forecasted to triple in size in three years.
• 🤽‍♀️ The sport's appeal post-Covid lies in its sociability and ease of play, attracting people seeking fun and exercise alternatives to the gym.
• 🎥 The Paddle School, an online video platform, was created to teach padel, addressing the challenge of spreading awareness about the sport.
• 🏢 A project backed by Spotify co-founder Martin Lorentzon in Canary Wharf aims to cater to the demand for padel among finance workers.
• 🏗️ Globally, the number of padel courts is expected to almost double by the end of 2026, increasing access to the sport.

Q & A

What is the main topic of the transcript?

The main topic of the transcript is the rapid growth of padel, a sport that is gaining popularity worldwide, with a particular focus on the development of padel clubs in the UK.

Where is the Swedish entrepreneur building a large padel center?

The Swedish entrepreneur is building a large padel center on the outskirts of East London.

What was the first club established by the entrepreneur after Covid?

The first club established by the entrepreneur after Covid was Rocket Padel Bristol, which is the largest padel club in the UK with 14 courts.

What is one of the challenges in scaling padel?

One of the challenges in scaling padel is acquiring clubs and premises, as it requires a significant amount of space and planning.

How long does it typically take for a padel club to become profitable from an operational perspective?

It typically takes between three to six months for a padel club to become profitable from an operational perspective.

Who invented padel and why?

Padel was invented in the 1960s by a Mexican businessman who did not have enough space to build a tennis court at his house in Acapulco.

What are some of the unique features of padel?

Padel is played on a smaller enclosed court, uses tennis scoring, and incorporates a glass wall for returning shots, similar to squash. It is typically played in doubles and is known for being sociable and easy to pick up.

How is the padel business model changing?

The padel business model is changing quickly due to the pace of growth in the sport and the impact of Covid, which has led to increased interest in social and recreational activities.

What is The Paddle School and how does it contribute to the growth of padel?

The Paddle School is an online video platform founded by Sandy and Tom Farquharson to teach people how to play padel and improve their game, contributing to the growth of the sport by educating new players.

What are some of the investments being made in professional padel?

Investments in professional padel include backing from entities like Qatar Sports Investment, DMG Ventures, and the parent company of the New York Yankees baseball team, as well as support from high-profile individuals from the sports world.

What is the expected growth in the number of padel courts globally by the end of 2026?

The number of padel courts globally is expected to almost double by the end of 2026.

How does the padel club in London's Canary Wharf plan to address the challenge of educating the public about padel?

The padel club in London's Canary Wharf plans to run lots of introduction sessions where people can try out padel for one session, learn the basic rules, and be ready to play a game. They also plan to run junior academies to engage children and build a grassroots sport.