Pickleball Clubs Face Financial Challenges After Rapid Expansion
Pickleball's popularity surge led to a rush of new clubs, but many are now struggling financially due to oversaturation and high operating costs. This shift may impact the sport's growth and investor confidence.
Original reporting · bisnow.com
Original: “From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After Betting Big On Retail Space”
Read “From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After…” at Bisnow →)
How this was written. Westchester Made wrote this article with a language model from Bisnow’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Bisnow’s report
- Pickleball's rapid expansion has led to financial difficulties for some operators due to oversaturation and high operating costs.
- The industry is experiencing a slowdown in growth, with the number of new courts increasing by only 4% in 2026.
- Despite the challenges, participation in the sport continues to rise, with over 24 million players in the US.
- The remaining pickleball businesses may prosper due to the increasing demand and player pool.
- Investors are likely to be more cautious when considering future pickleball-related projects.
Pickleball experienced a significant surge in popularity during the pandemic, prompting a wave of new clubs to open across the US. These clubs were often located in malls and former big-box stores, aiming to attract the growing number of players. However, the rapid expansion has led to financial difficulties for some operators.
The growth of pickleball courts has slowed down, with the number of new courts increasing by only 4% in 2026, compared to 14% in 2024. This slowdown is attributed to the increasing competition and saturation in the market. Despite this, participation in the sport continues to rise, with over 24 million players in the US.
The Picklr, a facility franchisor, recently filed for bankruptcy, highlighting the risks of aggressive expansion in the industry. The company had expanded rapidly, selling over 300 franchises, but its operating footprint grew more gradually than expected. This has led to a reevaluation of the business models and real estate deals in the industry.
Experts believe that the remaining pickleball businesses may prosper due to the increasing demand and player pool. However, the industry needs to adapt to the changing market conditions and find sustainable business models. The Sports & Fitness Industry Association's report shows that pickleball participation rose by nearly 23% last year, indicating a strong potential for growth.
The retail sector is expected to absorb the impact of pickleball club closures, with a low national vacancy rate of 4.3%. Cities like Austin, Seattle, and New York have become major pickleball hubs, and many operators are still thriving. However, investors are likely to be more cautious when considering future pickleball-related projects.
Some pickleball operators have found success by offering diverse amenities and services, such as restaurants, bars, and entertainment options. These establishments cater to a broader audience, including non-players, and are less vulnerable to economic downturns. Painted Hospitality's Pickled Pickle in Atlanta is an example of a successful concept that combines pickleball with social and entertainment options.
The future of the pickleball industry will depend on its ability to adapt to the changing market conditions and find sustainable business models. While some clubs may struggle, others are likely to thrive by offering unique experiences and amenities. Investors will be watching the industry closely, and future developments will be shaped by the lessons learned from the recent expansion and consolidation. This article is based on reporting by Bisnow.
Questions and answers
What is happening to the pickleball industry?
The industry is experiencing a slowdown in growth and some operators are facing financial difficulties due to oversaturation and high operating costs.
Why did The Picklr file for bankruptcy?
The Picklr's bankruptcy was due to its lease guarantees for early franchisees becoming too costly for the company, leading to significant financial losses.
What can pickleball operators do to succeed in the current market?
Operators can offer diverse amenities and services, such as restaurants, bars, and entertainment options, to cater to a broader audience and reduce their reliance on membership sales.
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