Padel has become one of the most talked-about growth areas in UK sport. For entrepreneurs, existing sports clubs, leisure operators and property owners, that growth is creating opportunities to develop new padel clubs, add courts to existing facilities and create larger multi-sport destinations.

But opening a successful sports venue involves considerably more than buying a few rackets and finding somewhere to play.

A new facility could require investment in: Courts. Premises. Groundworks. Lighting. Changing rooms. Equipment. Technology. Furniture. A café or bar. Marketing. Staff. And working capital.

Depending on the size and specification of the project, the total investment can quickly become substantial.

At Principal Business Finance, we can help new and established leisure businesses explore funding through our panel of commercial lenders, including Business Loans, Asset Finance, Commercial Mortgages, secured funding and working capital facilities.

So, how could finance be used to turn a padel or sports club concept into a trading business – or help an established venue expand?

Why Padel Is Creating New Business Opportunities

Padel combines elements of tennis and squash and is generally played as doubles on an enclosed court.

The sport has grown rapidly in Great Britain. The Lawn Tennis Association reported in February 2026 that there were over 1,000 padel courts across Britain and more than 400,000 people playing the sport, compared with just 50,000 players in 2020.

That growth is encouraging investment from:

• Independent entrepreneurs
• Tennis clubs
• Health and fitness operators
• Leisure businesses
• Property owners
• Existing padel operators
• Hotels and resorts
• Multi-sport facilities

But growing demand doesn’t remove the need for careful financial planning.

Before the first court booking is taken, a significant amount of money may already have been invested.

What Does It Cost to Start a Padel Club?

There isn’t one standard cost for opening a padel venue.

A small outdoor operation on an existing sports site will have a very different capital requirement from a large indoor club created inside a converted warehouse.

Costs could include:

• Court structures
• Artificial playing surfaces
• Groundworks
• Drainage
• Foundations
• Steelwork
• Canopies
• Lighting
• Electrical work
• Property deposits
• Refurbishment
• Reception areas
• Changing rooms
• Toilets and showers
• Furniture
• Lockers
• Rackets and balls
• EPOS systems
• Booking software
• Security and CCTV
• Signage and branding
• Café or bar equipment
• Staff recruitment
• Launch marketing
• Working capital

This means the real funding question isn’t simply:

“How much do the courts cost?”

It is:

“How much capital do we need to get the entire venue open, operational and generating sufficient revenue?”

Finance for Padel Courts

The courts themselves can represent one of the largest elements of the project.

A new venue might initially open with:

4 courts

then expand to:

6, 8 or 10+ courts

as utilisation grows.

Depending on the equipment, supplier and lender criteria, eligible court structures and associated equipment may potentially be considered for Asset Finance.

Rather than paying the entire cost upfront, the business could potentially spread the expenditure over an agreed term.

That can preserve cash for the many other costs involved in launching the venue.

Asset Finance for Sports Club Equipment

Asset Finance isn’t limited to the courts.

A padel or wider sports facility could require substantial equipment.

Depending on the venue, this could include:

• Gym equipment
• Fitness machines
• Sports equipment
• Commercial kitchen equipment
• Coffee machines
• Refrigeration
• Furniture
• EPOS systems
• Access-control systems
• Security equipment
• Maintenance equipment
• Lighting systems

Eligible equipment could potentially be funded through Hire Purchase, Finance Lease or another suitable Asset Finance structure, depending on the asset and lender.

Why Preserve Cash When Starting a Sports Club?

Imagine an entrepreneur has:

£300,000 available for a new padel venue.

The courts and eligible equipment require:

£200,000.

The business could potentially pay for everything in cash.

But that would leave just:

£100,000.

The remaining money may still need to cover:

Premises + groundworks + staff + utilities + marketing + insurance + stock + working capital.

Using finance for eligible assets could potentially allow the business to retain a larger cash reserve for the costs that are more difficult to finance.

A venue can have excellent courts and still experience problems if it runs out of working capital before memberships and bookings reach the required level.

Business Loans for Padel Clubs

A Business Loan can potentially provide greater flexibility where expenditure isn’t tied to one particular asset.

This could include funding for:

• Groundworks
• Premises refurbishment
• Changing facilities
• Launch marketing
• Recruitment
• Initial wages
• Professional costs
• General working capital
• Expansion costs

A Business Loan could therefore potentially sit alongside Asset Finance as part of the overall project.

Example: Funding a £500,000 Padel Club

Consider an illustrative new padel venue requiring:

£500,000 of total investment.

The project could look something like:

• £200,000 courts and equipment
• £100,000 property works and fit-out
• £50,000 café, reception and furniture
• £25,000 technology and security
• £25,000 launch marketing and recruitment
• £100,000 working capital

Rather than seeking one £500,000 loan, the business could potentially explore a combination of funding.

For example:

Asset Finance for eligible courts and equipment.

Business Loan for fit-out, launch expenditure and working capital.

And potentially secured or property finance where appropriate.

The exact structure would depend on the project, borrower and lender criteria.

But separating the project into different funding categories can create a clearer commercial proposition.

Funding Indoor Padel Venues

Indoor padel clubs can create different funding requirements.

Operators may take a lease on a:

• Warehouse
• Industrial unit
• Former retail property
• Leisure building
• Existing sports facility

The property may then require significant conversion before it is suitable.

Costs might include:

Court installation.

Flooring.

Lighting.

Electrical infrastructure.

Heating and ventilation.

Changing rooms.

Reception.

Café facilities.

Signage.

Fire and security systems.

The business may therefore need funding for both physical assets and property improvements.

A combination of Asset Finance and Business Loans could potentially be considered.

Finance for Outdoor Padel Clubs

Outdoor venues can have their own costs.

The site may require:

• Ground preparation
• Concrete foundations
• Drainage
• Court installation
• Floodlighting
• Fencing
• Access
• Parking
• Landscaping
• Utilities
• Canopies

Planning permission may also be required depending on the project.

Sport England notes that planning permission is generally required for new sports facilities and certain changes of use, while local planning authorities determine individual applications.

Businesses should therefore understand the planning position before committing substantial capital to a development.

Commercial Mortgages for Sports Facilities

Some operators may choose to purchase the property or land rather than lease it.

In that situation, a Commercial Mortgage could potentially form a major part of the funding structure.

For example, a company might purchase:

An industrial building

and convert it into:

An indoor padel and fitness facility.

The property purchase could potentially be funded through a Commercial Mortgage, while separate finance supports the courts, equipment, fit-out and working capital.

For larger projects, structuring the property and operating finance separately can sometimes provide greater flexibility.

Secured Finance for Larger Projects

Where suitable property security is available, Secured Business Finance may also potentially support larger leisure developments.

This could be relevant where an established business wants to:

• Build additional courts
• Extend existing premises
• Acquire another venue
• Complete major refurbishment
• Invest in multiple sites

Secured facilities can potentially provide larger funding amounts or longer terms than some unsecured products, depending on the lender and circumstances.

Don’t Forget Working Capital

This can be one of the most overlooked areas of a new sports club.

The venue may be finished.

The courts may look fantastic.

The booking system may be live.

But the business still has ongoing expenditure.

That could include:

• Rent or mortgage payments
• Wages
• Utilities
• Marketing
• Insurance
• Cleaning
• Maintenance
• Software
• Business rates
• Stock
• Finance repayments

Revenue may take time to build.

A new venue may need several months to establish:

Membership numbers.

Court utilisation.

Coaching programmes.

Corporate bookings.

Leagues and competitions.

Working capital can therefore be just as important as funding the physical development.

Building Multiple Revenue Streams

A padel club doesn’t necessarily have to rely solely on court hire.

A strong business model could potentially generate revenue from several areas.

These might include:

Court Hire

Customers pay to book courts by the hour.

Memberships

Recurring monthly or annual membership revenue.

Coaching

Individual lessons, group coaching and development programmes.

Leagues and Tournaments

Organised competitions and events.

Corporate Events

Team-building days and company tournaments.

Equipment Sales and Hire

Rackets, balls, clothing and accessories.

Food and Drink

Coffee, refreshments, meals or licensed bar sales where appropriate.

Sponsorship

Local or national commercial partnerships.

Gym or Fitness Membership

Where the venue includes wider fitness facilities.

The more diverse the revenue model, the less reliant the business may be on one particular income stream.

Why Court Utilisation Matters

For a padel business, one of the most important numbers is likely to be:

How often are the courts actually booked?

Consider a simple illustrative example.

A venue has:

6 courts

available:

14 hours per day

for:

360 days per year.

That creates:

30,240 available court hours annually.

At 50% utilisation:

15,120 court hours are sold.

At an illustrative average of £35 per court hour, that would represent:

£529,200 of annual court-hire revenue.

At 70% utilisation, the same calculation would produce:

£740,880.

These figures are purely illustrative and do not account for discounts, peak/off-peak pricing, VAT, downtime or other factors.

But they demonstrate why utilisation can have such a major impact on the commercial model.

Location Can Make or Break the Project

A high-quality facility still needs enough customers within its catchment area.

Before investing, operators may consider:

• Local population
• Competitor venues
• Parking
• Public transport
• Nearby businesses
• Schools and universities
• Local sports participation
• Household demographics
• Peak-time demand
• Visibility
• Accessibility

For indoor venues, ceiling height, floor space and building layout can also determine whether a property is suitable.

A cheaper building isn’t necessarily better if it restricts the number of courts or makes the customer experience less attractive.

Funding an Existing Sports Club to Add Padel

Not every padel finance project involves creating a new business.

An existing:

Tennis club

Golf club

Gym

Hotel

Leisure centre

or:

Sports complex

might decide to add padel courts.

This can create a different funding proposition because the organisation may already have:

• Trading history
• Existing members
• Established revenue
• Premises
• Employees
• Bank statements
• Accounts
• Customer demand

Finance could potentially allow the operator to add new facilities without using all of its existing cash reserves.

From 4 Courts to 8 Courts

Expansion can also become relevant once a padel venue establishes demand.

Imagine a four-court venue regularly operates close to capacity during peak periods.

Customers struggle to find available slots.

Membership continues growing.

Coaching demand is strong.

The operator might decide to add another four courts.

Rather than waiting several years to accumulate the cash required, commercial finance could potentially allow the business to increase capacity sooner.

The existing venue’s trading performance can also provide lenders with evidence of demand and utilisation.

Finance for a Second Padel Location

Once an operator has established one successful venue, the next opportunity may be a second site.

The business can potentially demonstrate:

• Historic accounts
• Court utilisation
• Membership numbers
• Average revenue per court
• Coaching income
• Customer retention
• Operating costs
• Management experience

That can create a very different funding proposition from the first site.

A multi-site operator could potentially use commercial finance to support expansion while retaining cash within the original business.

Acquisition Finance for Existing Sports Clubs

Expansion doesn’t always mean building a venue from scratch.

An operator might instead purchase:

An existing padel club

A tennis centre

A gym

or:

Another leisure business.

Depending on the transaction, Acquisition Finance, Business Loans or secured funding could potentially support the purchase.

The lender may assess the historic financial performance of both the acquiring business and the company being purchased.

Finance for Other Sports Club Businesses

The same principles extend beyond padel.

Principal Business Finance can potentially explore funding for businesses including:

• Tennis clubs
• Pickleball venues
• Gyms
• Fitness studios
• Football centres
• Golf facilities
• Climbing centres
• Indoor cricket facilities
• Martial arts gyms
• Swimming facilities
• Multi-sport centres
• Children’s sports facilities

These businesses often share similar funding requirements:

Premises + equipment + fit-out + staff + marketing + working capital.

What Might Lenders Want to See?

For a new padel or sports venue, lenders may request:

• Business plan
• Financial forecasts
• Director experience
• Personal investment
• Property or lease details
• Court quotations
• Equipment quotations
• Planning information
• Fit-out budget
• Expected pricing
• Membership assumptions
• Expected utilisation
• Working capital requirement
• Personal credit profile

For an established business, lenders may also consider:

• Annual accounts
• Management accounts
• Business bank statements
• Existing borrowing
• Historic turnover
• Profitability
• Current membership
• Existing venue performance

A clear project budget and realistic assumptions can make it easier for lenders to understand exactly what is being funded.

New-Start Padel Finance

A new padel company may technically be a startup.

That does not automatically mean commercial finance is unavailable.

However, without historic accounts, lenders may place greater emphasis on:

Director experience.

Personal investment.

Credit profile.

Business plan.

Location.

Forecasts.

Assets being purchased.

Planning and lease arrangements.

A management team with experience in leisure, hospitality, property, sport or operating multi-site businesses may also provide useful context to the application.

How Principal Business Finance Can Help

At Principal Business Finance, we work with a wide panel of commercial lenders and can help entrepreneurs and established operators explore finance for new and expanding sports businesses.

Depending on the requirement, we can potentially arrange:

Padel Court Asset Finance

For eligible courts and associated equipment.

Sports Equipment Finance

For gym, leisure, catering and other eligible equipment.

Business Loans

For fit-out, groundworks, launch costs, marketing, recruitment and working capital.

Commercial Mortgages

For purchasing suitable commercial property.

Secured Business Loans

For larger projects where appropriate security is available.

Acquisition Finance

For purchasing an existing sports or leisure business.

Working Capital Finance

Helping established venues manage ongoing or expansion-related cash requirements.

Rather than looking only at the cost of the courts, we can consider the entire project and explore how different elements could potentially be financed.

Funding the Whole Padel Club – Not Just the Courts

Starting a padel club involves far more than installing the playing surface.

A successful venue needs:

The right property.

The courts.

Lighting and infrastructure.

Changing facilities.

Equipment.

Technology.

Staff.

Marketing.

And enough working capital to build utilisation.

For existing operators, commercial finance can also provide a route to add more courts, expand facilities, acquire another club or open a second location.

With padel participation continuing to grow across Britain, the opportunity is attracting increasing interest – but turning an opportunity into a sustainable business requires the right capital structure.

At Principal Business Finance, we can help explore our lender panel and arrange Asset Finance, Business Loans, Commercial Mortgages, secured funding and other commercial finance solutions for suitable padel and sports club projects.

Whether you’re considering your first four-court venue or planning the next location in a growing portfolio, contact Principal Business Finance to discuss the project and explore the finance options that may be available.Contact us on 01604217998, email info@principalbusinessfinance.co.uk, or enquire here.

All finance is subject to application, status, lender criteria and approval. Examples and revenue calculations are illustrative only and do not represent forecasts or guaranteed returns.