The Economics of a Small Town Pickleball Club

I just played here & did some digging.

City: Logan, UT - Pop: 54,436

Club: 24k sqft & 9 courts (Old Bed Bath & Beyond)
Cost: $99 - $225/month

# of members: 2,000
Rent per square foot: $17/year = $34,000/month

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Annual profit: This is where it gets tricky.

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I had to guesstimate # of members. I asked the person working there and she was ho hum. Apparently she doesn't want some rando encouraging would be competitors on Twitter? Rude.

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I asked if she had a thousand?

"Oh, way more."

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So I guessed at 2,000.

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The population in the whole valley is 133,000 so less than 2% of them being members isn't unreasonable.

My cousin is a member and said it's ALWAYS PACKED. It sure was today at noon.

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It's open 108 hours per week and every court there had doubles playing. 100% capacity and 100% doubles * 9 courts * twice per week per person = 2,500 members.

But it surely isn't at 100% capacity.

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80% capacity would be about 2,000 members. Plus ancillary revenue from events, equipment sales, etc.

If the average membership is $150/month then that's $300k/month in top line.

That seems high, so let's say $200k/month. That's just a $2.4m/year business. Not crazy for a space so big.

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Maybe 1,500 members is more accurate.

Rent + CAM charges + utilities are prob $45k/month all in.

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There were only 3 people working, while packed.

If that is the case all day every day then monthly wages are likely $40-50k/month as well. Being conservative here.

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I bet this location nets about $1.2m/year, and growing. Great margins. Very bare bones building. Almost no build out whatsoever.

Not bad money for a small town like Logan. (home to Crumbl's first location, and my birthplace)

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It was pretty janky, too. Mom and pop vibe. It still looked like a bed bath and beyond (old slat shelving still there).

I expected more from a reputable nationwide franchise.

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If I were going to do this I wouldn't buy into a franchise. What's the point? People come here to play indoors, not for the brand. It isn't rocket science.

I'd find a city of 100k+ that doesn't have a club and open my own brand.

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Marketing is kinda built-in as people need partners to play with. Free referrals!

What do you think about my assumptions? Way off?

Pickleball is here to stay.

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Follow me @mhp_guy if you nerd out about small biz like I do.

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