The question may seem strange: the sector is booming and obviously clubs that go out of business are rare. But why should padel be safe from bankruptcies and closures? Paradoxically, despite the enthusiasm generated by padel in Europe since COVID, some project leaders can make mistakes, sometimes naive ones.

Although it is always easier to criticize with hindsight, some advice remains universally applicable to all sports projects, and in particular to padel.

The closure of padel clubs can result from several factors. Here are the main ones:

Problem #1: land/rent

The major challenge for padel project leaders is often land and rent. Although a padel court is almost three times smaller than a tennis court and accommodates four players compared to the traditional two in tennis, finding a suitable site is often very complex, or sometimes impossible.

The temptation to accept exorbitant purchases or rents to bring a project to fruition is great. However, this can quickly bring a club to the brink of bankruptcy. Not because the club is not viable, but because the business plan was poorly designed. If a club is well attended and appears to be thriving but cannot break even financially, this usually indicates a deficiency in the initial management of the project. Rent is often the main culprit.

Hence the crucial importance of the initial negotiation: failure at this stage can weigh heavily on the financial future of the club.

Padel club bankruptcy closure
Padel club bankruptcy closure

Problem No. 2: a management defect

The concern may also come from the management of the center itself. Players may find themselves dissatisfied for various reasons: difficulty booking, lack of information, or lack of post-match community life.

The reasons can vary: unfriendly welcome, sub-optimized facilities, or lack of visibility due to insufficient communication.

It is surprising to note that clubs, ready to invest massively in their project, choose to limit their communication expenses. Finding a wise financial balance is crucial, and this should be planned from the start.

Current notoriety does not guarantee future success. This goes for clubs, brands and media. Players, by nature volatile, will go where the conditions seem better to them. Don't blame them; the problem perhaps lies in the management of the center.

Problem #3: Competition

It is essential to analyze the area of ​​the planned implementation. Padel, which has become a very fashionable sport, attracts the attention of both the private and public sectors.

Moreover, we see town halls and communities, which were still cautious 3 or 4 years ago, launching investments around padel to sometimes renew an aging sports park and invest in the sport “which is exploding”.

Investing in an area likely to see the emergence of many competing public structures must be carefully considered. Although the presence of public clubs can boost interest in padel, relations between the sectors are not always harmonious. Be careful, public clubs are important in the development of padel in France. The FFT is counting on them as part of the territorial network. It is especially important not to pit one against the other. However, the objectives and ambitions are not always the same.

Private operators, faced with significant investments, high rents and autonomous management, must analyze and plan with precision to avoid unpleasant surprises.

Investment in clubs with at least three or four tracks is often recommended, especially in high density areas, in order to offer higher quality facilities than those in the public sector.

Our advice

Read Padel Magazine !

1/ More seriously, the site provides a unique professional directory with all the main players in padel:

2/ And then, you can also enjoy, at times, some good tips, even if you always have to be very careful when buying second-hand.

3/ You also have the possibility to increase your experience as a padel player:

4/ Take a look at:

5/ Additional information

6/ It’s obvious, but get closer to your Federations or your local leagues.

Franck Binisti

Franck Binisti discovered padel at the Club des Pyramides in 2009 in the Paris region. Since then, padel has been part of his life. You often see him touring France to cover major French padel events.

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