The Business of Padel | Financial Times Scoreboard

#Growth, #Investments, #Trends

Padel, a growing global sport, attracts investment despite challenges like space and awareness.

Padel, a sport blending elements of tennis and squash, is rapidly growing worldwide. Originally invented in Mexico in the 1960s, it gained immense popularity in Spain and Argentina and is now expanding into new markets like the UK, US, and Germany. Investors see tremendous potential, with the global market estimated at 2 billion euros annually and expected to triple by 2026.

Swedish entrepreneurs are leading this charge, building padel courts in London to tap into the growing demand for social, easy-to-learn sports. However, one of the main bottlenecks is securing locations for padel clubs, especially in densely populated areas. Once clubs open in key areas, though, their success attracts further investment, making expansion easier.

Padel’s accessibility makes it attractive for both recreational players and institutional investors. Companies like Qatar Sports Investment and the New York Yankees have shown interest in padel tours and leagues. This surge in investment is helping to promote the sport, with grassroots initiatives aiming to educate new players and foster growth in emerging markets.

Despite challenges like planning restrictions and a small player base in newer regions, the number of courts worldwide is projected to nearly double by 2026, signaling a bright future for this fast-growing sport.

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