Padel has become an increasingly popular addition to the UK leisure and sports market, creating opportunities for businesses looking to develop new courts, expand existing facilities or enter the sector for the first time.

But while the demand for padel is attracting new operators and investors, setting up a successful facility involves more than simply installing a few courts. Location, construction, equipment, planning, ongoing costs and how the project is funded all need to be considered before work begins.

What does a padel court development involve?

The scale of a padel project can vary considerably. Some businesses may be looking to install a small number of outdoor courts, while others may be developing a larger indoor facility with additional amenities.

Alongside the courts themselves, a project may involve ground preparation, installation, surfacing, flood lighting, changing facilities, reception areas or clubhouse improvements. Indoor developments can also involve additional building and site costs, depending on the property being used.

Understanding the full scope of the project early on is important, as the cost of developing a facility can change significantly depending on the number of courts, whether they are indoor or outdoor and the specification of the finished site.

Building new courts or expanding an existing facility

Not every padel business starts from scratch. Existing leisure centres, gyms and sports facilities may already have a suitable site and customer base, making an expansion into padel a natural next step.

Adding further courts can allow an established operator to increase capacity without having to develop an entirely new business. For a new operator, meanwhile, the project may involve securing a site, preparing the land and developing the facility from the ground up.

The starting point therefore makes a difference when planning the project, particularly when considering how much capital will be required and what level of finance may be appropriate.

The costs go beyond the courts themselves

One of the easiest things to overlook when planning a padel facility is the wider cost of getting the business ready to operate.

Court construction is likely to be one of the largest expenses, but businesses may also need to account for lighting, surfacing, site preparation, planning requirements, equipment and improvements to existing buildings or facilities.

There may also be working capital requirements once the facility opens. Having enough available cash to cover the early stages of trading can be just as important as funding the initial development.

What can make a padel project attractive to lenders?

Padel is still a relatively new area of finance, so lenders may assess projects on an individual basis rather than applying a standard approach to every application.

For someone developing their first facility, relevant experience in leisure, hospitality or sport can help, alongside a clear business plan and a realistic contribution towards the project. Established operators may have an advantage because their existing trading history and financial performance can provide lenders with a clearer picture of the business.

The strength of the location, the proposed facility, expected demand and the overall financial plan can all play a part in how a project is assessed.

How businesses can approach the funding side

There isn’t necessarily one way to fund a padel development. Depending on the project, different types of finance may be considered for different parts of the investment.

Asset finance can potentially be used for courts and equipment, while business finance may be more suitable for areas such as site preparation, working capital or other development costs. Businesses looking to join an established padel brand may also consider franchise finance.

The right approach will depend on the size of the project, the business behind it and what the funding needs to cover. Looking at the full project rather than focusing only on the cost of the courts can give a clearer picture of the finance required.

Planning a padel facility?

Whether you’re considering developing your first padel courts, expanding an existing leisure facility or investing in a franchise, understanding the numbers and funding requirements early can help you plan with greater confidence.

If you’re looking at the funding side of a new padel project, take a look at our dedicated Padel Court Finance page. It explains the types of projects finance can support, what lenders may want to see and the different funding options that could be considered.