Prospective pickleball facility owners all want to know: "What does it really take to run a profitable facility?" Passion may be what drives your initial interest, but understanding the ROI of a pickleball facility is key for long-term success.
At Johns Design and Consulting (JDC), we've identified $1.2 million in annual revenue as a benchmark for successful facilities. But how you reach this target–and what return you can expect–depends on decisions you make about your business model, revenue streams, and cost management.
In this guide, we'll break down the real numbers behind successful pickleball facilities and share practical insights to help you make informed decisions about your business.
Pickleball Business Models And ROI Potential
Your choice of business model fundamentally shapes your facility's potential returns. The bottom line is: will you be more profitable with an autonomous (self-operating) business model, or a traditional staffed business model?
While we take a deep dive in our dedicated article comparing autonomous and staffed facilities, here's a high-level overview of these ROI profiles:
Autonomous Pickleball Facilities
Autonomous facilities require higher upfront technology investment but can reach profitability at lower revenue thresholds (around $400,000 annually). These facilities work best with six courts or fewer, which limits their total revenue potential but allows for efficient operations with minimal staff.
Staffed Pickleball Facilities
Staffed facilities need more initial operating capital and typically require $750,000 or more in annual revenue to break even. With the ability to support more courts and comprehensive programming, these facilities can generate higher total revenue, especially through tournaments, leagues, and coaching.
Some larger facilities (typically around 12 courts) are now successfully implementing hybrid models, using autonomous operations during off-peak hours while maintaining staffed operations during prime time.
Revenue Models That Drive Profitability
Want to know how successful pickleball facilities make money? It's not just about collecting court fees. The most profitable facilities we work with have mastered the art of multiple revenue streams, with programming leading the way.
Core Revenue Streams
Here's something that might surprise you: programming typically drives about 40% of a facility's revenue. This includes:
Tournaments and leagues
Clinics and private coaching
Corporate events
Organized social play
The rest usually comes from court reservations or membership fees, with extra revenue possible through amenities like pro shops or food service.
Membership vs. Drop-in Models
When it comes to access models that generate revenue, you have three main options:
Membership Model
Creates predictable recurring revenue
Members typically want prime-time court access
Can limit revenue potential during peak hours
Works well for facilities focused on high-touch service and community building
Drop-in Model
Maximizes revenue potential during prime time
Attracts new players and corporate events
More flexible pricing structure
Great for food-first establishments
Hybrid Model
Combines membership benefits with public access
Example: $15/day drop-in or $80/month membership
Morning-only memberships to fill off-peak hours
Members get priority access and additional benefits
Maximizing Revenue Through Staff Incentives
If you're planning a staffed facility, how you compensate your coaches can impact your revenue goals as well. The most successful facilities we've worked with:
Offer competitive coaching splits to attract top talent
Incentivize staff to generate additional revenue
Share up to 50% of revenue for hand-to-hand programming
Create clear advancement pathways for coaching staff through strategies like our RPO certification program
Breaking Down Your Monthly Costs
Let's talk real numbers and break down where your money goes each month. And more importantly, what's left after expenses.
The $1.2 Million Revenue Target
Here's a typical monthly expense breakdown for a staffed facility hitting our $1.2 million revenue benchmark. Keep in mind that revenue and expenses will vary based on location, facility size, revenue streams, and other factors.
Monthly Revenue: ~$100,000
Rent and Property Costs: ~$35,000
Includes lease, triple nets, taxes, and CAM charges
Staffing: ~$25,000-$30,000
Key positions like Director of Pickleball can range from $80,000-$150,000 annually
Marketing: ~$5,000-$10,000
Maintenance and Misc: ~$5,000
Includes routine upkeep, equipment, and unexpected expenses
This breaks down to about:
$100,000 in monthly revenue - $80,000 in operating expenses = $20,000 in profits
This level of revenue means you can support professional management, run quality programs, and maintain healthy margins for long-term growth AND profitability.
One of the biggest financial pitfalls we see is new owners signing unsustainable leases. Don't let pressure to secure a specific location push you into rent payments that your revenue can't support.
Hidden Costs to Plan For
Beyond these regular expenses, successful facilities budget for:
Technology upgrades and maintenance
Staff training and development
Seasonal programming changes
Marketing campaigns for new member acquisition
Loyalty programs for existing members
Community events and engagement activities
Large capital expenses, like court resurfacing
Remember: cutting corners on essential expenses like quality coaching staff or facility maintenance usually costs more in the long run through lost revenue and member dissatisfaction.
Future-Proofing Your Pickleball Facility Investment
As pickleball continues to grow, certain markets will become saturated with facilities. Simply building courts is no longer enough for long-term success.
Here's how successful facilities are preparing for the future:
Building a Community Beyond the Courts
The most successful facilities are evolving from pure utility (just courts) to true community centers. This means:
Creating end-to-end player development pathways
Building loyal communities that keep players coming back
Hosting regular social events beyond tournaments
Fostering connections between players of all levels
Differentiating Through Technology and Programming
With increased competition, facilities need to stand out. Smart investments include:
Modern booking and facility management systems through software like PodPlay
Player development technology through features like automated iPad replay systems
High-quality lighting and court surfaces to enhance player experience and safety
Comprehensive coaching programs for players of all levels
Innovative league formats and tournaments to bring players together
Developing a Strong Player Pipeline
To continue being profitable year after year, you will need to constantly focus on bringing in new players and helping them grow. Focus on:
Programs for first-time players
Clear pathways to improve from beginner to advanced levels
Regular clinics and skills development opportunities
Creating a welcoming environment for all skill levels
The facilities that will thrive in saturated markets are those that focus on building community, not just building courts, and those that invest in programming and technology that enhances the player experience.
Your Next Steps
Whether you're planning your first facility, optimizing an existing one, or expanding your portfolio, JDC helps facility owners:
Choose the right business model for their market
Develop sustainable revenue streams
Plan for long-term growth and profitability
Create communities, not just facilities
Take the next step in turning your passion for pickleball into a profitable venture! Contact JDC today to discuss your vision.
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