Major League Pickleball: A Game Changer in the Sports Investment Landscape
Ben Johns lit up the court during a thrilling Major League Pickleball (MLP) match at New York’s iconic Wollman Rink on September 21, 2024. As the vibrant energy of the crowd filled the air, it became clear that this isn’t just another professional sport; it’s a burgeoning phenomenon on the brink of profitability and poised for expansion.
The Ride to Profitability
Since its inception in 2021, MLP has made significant strides towards financial viability. According to an insider source, the league is targeting a profitable outcome at the league level by the end of Q4 2024. As it stands, two out of the 22 teams within the league are already seeing profits, while another has reached the breakeven point. The goal is ambitious yet achievable: average profitability for teams by 2027.
Opening the Door for Investors
Perhaps the most exciting development in the world of pickleball is the league’s decision to sell up to two new expansion franchises. This is a once-in-a-lifetime investment opportunity in what is rapidly becoming America’s fastest-growing sport. With professional sports valuations skyrocketing, now is a time when investing in pickleball is surprisingly accessible, with the league estimating the entry cost for new teams to be around $15 million.
Just recently, the Arizona Drive announced its sale of a controlling stake with an estimated valuation exceeding $10 million, indicating that interest and value in the league are undeniably on the rise.
The Future of Pickleball
The potential for new franchises isn’t just about expanding the league from 22 to 24 teams; it signifies the evolution of a sport that has captured the attention of nearly two dozen interested parties in just the last few weeks. New owners will have the autonomy to choose their team’s location and will gain 100% equity in their franchise, shares in the United Pickleball Association, and a stake in DUPR, the official pickleball rating system. The league aims to launch these new teams in time for the highly anticipated 2026 season.
Capitalizing on Growth Trends
In a recent presentation, MLP illustrated the investment opportunity in an asset class enjoying double-digit annual growth and vast revenue potential through sponsorships and local events. "This is a once-in-a-generation moment to get involved early with a sport that is bound for success," the presentation boldly declared.
Moreover, the merger of Major League Pickleball and the Professional Pickleball Association has led to the creation of United Pickleball, a powerful entity hosting 36 major events across three continents. As the only professional sports league in America that offers year-round live content and events, it stands apart in an increasingly competitive marketplace.
Navigating Challenges
Despite the positive growth and budding opportunities, it hasn’t been without its hurdles. Cash flow issues have lingered, leading the league to seek a $10 million bridge loan to maintain its growth trajectory and manage short-term cash needs. A memo revealed that the league had only $2 million to $4 million on the balance sheet heading into 2025 while needing to fulfill players’ contract obligations due in early 2025.
However, the salaries offer a bright outlook. On average, women competing in the Major League Pickleball earn $260,000 per year, surpassing those in more established women’s sports leagues like the WNBA and NWSL, indicating a burgeoning market for lucrative player contracts.
Star-Studded Support
Adding to the credibility and allure of Major League Pickleball is the involvement of high-profile celebrity investors, including sports icons Patrick Mahomes, LeBron James, and Kevin Durant, along with fashion mogul Heidi Klum. Their participation could potentially enhance the league’s visibility and open doors to new marketing avenues.
The sport itself has witnessed an astonishing increase in participation—over 223% in just three years—according to the Sports and Fitness Industry Association, with players of all ages jumping in on the action.
Conclusion
At Extreme Investor Network, we recognize that the landscape of professional sports is evolving, and Major League Pickleball is at the forefront of this change. As the league inches toward profitability and prepares for expansion, savvy investors stand to gain immensely from this unparalleled opportunity. If you’re looking for the next big investment in the world of sports, now is the time to explore the dynamic arena of pickleball—before the game truly takes off. Don’t just watch the action; be a part of it!