By Tim Bainton, Blue Chip Sports Management
One trend concerns me as I watch capital flow into racquet sports.
Too many investors are racing to secure locations in what they perceive to be the epicenters of pickleball and padel growth. Those markets generate headlines, attract attention, and create excitement—but they also command premium land prices, escalating rents, and increasingly fierce competition.
That doesn’t automatically make them the best investment.
To be clear, there are exceptional operators who lease facilities and have built outstanding businesses. Leasing isn’t inherently a flawed strategy. In many cases, it’s the right one.
But I believe investors should ask a different question:
Are we investing in a trend, or are we investing in long-term value?
Personally, I lean toward ownership whenever the economics allow.
I’d rather acquire an underutilized asset in a growing suburb or a strong secondary market than overpay for a trophy location in the country’s most competitive city.
Why?
Because great businesses are built on flexibility.
If you own the underlying real estate, you control your destiny. You can reposition the asset as consumer demand evolves. You can convert tennis courts to padel, add pickleball, expand fitness, create hospitality offerings, introduce recovery services, or even pursue entirely different uses decades from now.
You’re investing in optionality.
Secondary markets and suburban communities also offer something many primary markets no longer can: attractive acquisition costs, favorable demographics, easier entitlement, growing populations, and less direct competition.
Most importantly, they allow operators to build sustainable businesses rather than simply fighting to cover premium occupancy costs.
The future of commercial racquet sports won’t be won by whoever builds the flashiest club in the hottest ZIP code.
It will be won by disciplined investors who understand real estate, manage risk, diversify programming, and build assets designed to appreciate for decades—not just capitalize on today’s participation boom.
In my view, the winners won’t necessarily own the most courts
They’ll own the best real estate.