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Morten Hansen's avatar

Aris, you are right. 30.000 in 2030 is fantasy with no backup in reality. Try also to see it from Production, Logistic, installation perspectiv. 29.000 courts in less than 4 years. There are so many so called “experts” talking about the Padel business without real knowledge about it. Imagine the workload producing and installing 500-600 courts every single months for almost 4 years.. just the man hours and and amount of teams to do it….many of the Big factories have a Production limit between 500-1500 courts a year…..it could very Well end up with 30.000 but it will take time and require a lot of changes to keep the prices/1h Down like in Europe. Is things will be done the right Way Padel Can be very Big in US. No doubt. Thanks a lot for a great post and I fully agree that the “experts” need to talk reality to avoid the business and people will take bad decisions. Best Morten

Hans Helmers's avatar

Aris, this generates a few thoughts for me... is high utilization possible for padel clubs in the near-term with lower pricing? High utilization could potentially generate more total revenue than higher prices. That is worth testing, and obviously needs to go hand in hand with strong marketing and programming. The cost of amenity build-outs can be pricy in some cases, but the bigger cost driver overall is still the lease. The lease cost and government subsidies make the international markets you mention a very different economic proposition. That is an apples to oranges pricing and club financial comparison with the US. The interesting comparison would be two US clubs in the same region with similar cost structure at materially different price points. A growing number of US clubs are positioned more for the masses. It is more obvious for them to do so if they are in lower cost and lower income regions. I'm not sure the "elite" US clubs wanted to be exclusive and exclusionary. I believe they all just wanted to be as profitable as possible over the long term.

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