8 Hidden Costs of Owning a Pickleball Facility

Building a pickleball facility is exciting, but like all new ventures, budget surprises can quickly turn that excitement into stress. 

With most facilities being less than three years old, there's not a lot of financial history to guide new operators. This creates a pretty significant information gap that we see trip up even the most prepared developers.

After helping dozens of operators navigate the pickleball facility development process, we've noticed the same financial blindspots pop up repeatedly. 

Some of these costs might seem obvious to experienced developers, but we've consistently seen even savvy entrepreneurs overlook critical expenses when planning their pickleball facilities. Even when you think you've thought of everything, it's worth double-checking your budget against this list.

Why Your Pickleball Budget Probably Needs a Reality Check

If you're thinking you can just adapt a gym's business model for your pickleball facility, we need to talk. 

While some operational aspects overlap, pickleball venues come with their own unique set of considerations that impact both your initial investment and long-term operational costs.

A well-developed pro forma helps both you and your investors understand what you're really getting into, beyond just court construction and basic startup costs. 

We often see enthusiastic operators laser-focused on the cost of court building, equipment, and minimizing staffing–while completely missing additional expenses that inevitably show up.

Build-Out Costs That Shock Even Experienced Developers

That road from empty space to thriving facility is paved with expenses many operators never see coming. 

1. Permitting Costs and City Fees You Can’t Avoid

   
   

City permitting processes can be a real headache–both time-consuming and surprisingly expensive. 

Depending on where you're building, you'll likely encounter:

• Building permits (typically calculated as a percentage of your project's valuation, which comes as a surprise for many new operators)

• Plan review fees

• Impact fees that support local infrastructure

• Zoning variances or special use permits (often needed for recreational facilities in commercial or industrial zones)

• Multiple inspections and compliance certifications

In some cities, these fees can hit tens of thousands of dollars–a significant chunk of change that rarely makes it into initial budgets.

2. Professional Services You Didn't Know You Needed

   
   

Designing a professional facility requires expertise beyond your general contractor, including:

• Architectural design (which can run $20,000-$100,000+ depending on your project)

• Acoustic engineering (because neighboring residents or businesses don’t want to hear the constant “popping” of pickleball)

• HVAC specialists who understand athletic facility requirements

• Lighting design for a safe and enjoyable player experience

• Project management to keep everything on track

3. Construction Contingencies (You Need More than You Think)

Even with detailed plans and experienced contractors, construction surprises are the rule–not the exception.

Smart operators plan for:

• A 10-20% construction contingency buffer

• Materials price increases (which happen more often than you'd think)

• Those "uh-oh" structural issues that only appear once walls start coming down

• Building code compliance curveballs

• Weather delays and scheduling complications

  
  

4. Tax Surprises That Weren't On Your Radar

   
   

Opening a new facility triggers various tax considerations that can catch you off guard:

• Property tax reassessments after your improvements 

• Sales tax permits and systems for tracking everything properly

• Payroll tax setup and administration

• Income tax planning for different business structures

• Potential tax incentives or special district assessments

Working Capital You'll Need After the Grand Opening

Having enough money to finish construction is only half the battle. Your facility needs financial runway beyond opening day if you want to succeed.

5. Pre-Opening Staff Costs No One Told You About

   
   

Quality staffing begins well before you open your doors with:

• Management onboarding (ideally 2-3 months pre-opening)

• Front desk staff training (at least 3-4 weeks before you open)

• Pro shop and food service preparation

• Programming development and instructor certification

• Technology setup and training, like PodPlay for membership and reservations

These labor costs can easily hit $30,000-$60,000 before you generate a single dollar in revenue–an essential investment many operators don't adequately budget for. 

6. The Operating Expense Buffer You Can't Skip

New facilities face a revenue ramp-up period while building membership and establishing programming. 

Successful operators plan for:

• At least 3-6 months of operating expenses in reserve

• Realistic (not optimistic) membership growth projections

• Seasonal ups and downs in court usage

• Marketing expenses to build community awareness

• Cash flow gaps during those early months

• Maintenance reserves (because things always break)

Without this operating buffer, even popular facilities can face cash crunches within their first year.

7. Inventory That Adds Up Quickly

If your facility boasts a pro shop or foot and beverage component, inventory represents a significant upfront investment:

• Pro shop equipment and merchandise

• Food and beverage initial stock

• Maintenance supplies and equipment

• Technology systems and software licenses

• Office and administrative supplies

These inventory costs range from $10,000 for basic offerings to $100,000+ for comprehensive retail operations–and everything needs to be purchased before opening day.

8. Utility Deposits and Setup Fees That Sneak Up On You

New commercial accounts typically require:

• Utility deposits (often based on estimated monthly usage)

• Account setup fees

• Service connection charges

• Technology installation (internet, phone systems, etc.)

• Security system setup

These costs typically add up to $5,000-$15,000 depending on facility size and location–small individually but significant when combined.

Building a Budget That Actually Works

The key to avoiding budget surprises isn't just knowing what costs to expect–it's planning for them with adequate reserves. 

Many operators focus exclusively on construction costs but underestimate how much additional capital is needed for a successful launch. The "hidden" expenses we've outlined are often what make the difference between struggling and thriving facilities.

Experienced pickleball facility consultants, like Johns Design & Consulting, understand both construction and operational requirements. Our expertise, combined with our financial partners, helps you develop realistic budgets that account for all aspects of facility development–not just the most visible parts.

What's Your Next Move?

Understanding these hidden costs is just the beginning of creating a sustainable pickleball business.

As you refine your facility plans:

1. Develop a comprehensive business plan that includes ALL expense categories

2. Research local permitting requirements and fee structures

3. Connect with pickleball-experienced professionals who've been there

4. Build appropriate contingencies into both development and operating budgets

5. Consider phased development approaches that match your available capital

Ready to create a financial plan that actually works for your pickleball facility? Let's talk about budget development and financial planning tailored to your market and vision.