Ben Johns of the Carolina Pickleball Club rallies the ball during a Major League Pickleball match at Wollman Rink in New York on Sept. 21, 2024.
Major League Pickleball is on the brink of profitability and is now looking to expand, a league source tells CNBC.
The MLP, which started in 2021, is targeting profitability at the league level by the fourth quarter of this year, according to the source, who spoke on the condition of anonymity to discuss nonpublic matters.
On a team-by-team basis, two of the league’s 22 clubs are profitable and one has reached the breakeven point, the person added. The league is targeting average profitability for individual teams by 2027.
As MLP looks to hit that important benchmark, expansion is now on the table.
For the first time in two years, the league is offering investors the opportunity to get in on America’s fastest-growing sport with the sale of up to two expansion franchises, the source said. As sports valuations have skyrocketed in recent years, the entry point in professional pickleball is more affordable for many investors.
It is unclear how much a new team would go for, but the league is targeting around $15 million per franchise, according to the league source. On Thursday, the Arizona Drive announced it was selling a controlling stake in the team in a deal valued at upward of $10 million.
If a deal for an expansion team does happen, the new owner would determine the team’s location. Franchise interest remains high with nearly two dozen parties expressing interest over the past two weeks, the source said.
New ownership would grow the league from 22 to up to 24 teams and would come with equity in parent company United Pickleball Association; 100% equity in the team; and equity in DUPR, pickleball’s rating system, according to the league source. The idea is to launch the new teams in time for the 2026 season.
In an investor presentation seen by CNBC, the league touts the opportunity to invest in an asset class of sports with double-digit annual growth and the ability to capture additional revenue opportunities across sponsorship, hosting events and local activations.
Major League Pickleball looks to add teams, reach profitability this year
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