Investor Data Room
Your Local Padel Club
Coming soon to your neighborhood. Padel Spot is a unstaffed, technology-enabled chain of indoor padel microclubs in the U.S. We are currently in the process of securing SBA loans to develop our first microclub, Padel Spot Prime, and raising a limited amount of equity capital to support early operations and growth. Read our full business plan and investment prospectus below.
Executive Summary
The Opportunity:
Padel has surged to 30 million players worldwide—a 2.5x increase in popularity over the past ten years reflected in a 400% increase in google trends for Padel over the past 5 years. In the US, there are approximately 90,000 padel players—up 50% in three years—projected to grow to 15 million by 2030. Google trends for “padel” in the U.S. is up 800% in 5 years.
The Problem:
The current demographics of U.S. padel players–affluent jet-setters–and economics of full-service padel clubs offering a variety of amenities besides court rentals have forced clubs to offer a larger number of courts to cover overhead expenses, particularly labor costs. The lack of existing supply building large facilities with >26’ ceiling height able to house 8+ courts, as well as the cost of building them, has largely limited U.S. clubs to in urban areas as outdoor clubs.
The Solution: Padel Spot
Padel Spot is disrupting the current model of large, downtown, full-service, outdoor padel clubs in the U.S. We provide local access to professional-caliber indoor padel courts in two-court microclubs capable of being remotely operated by Regional Managers and strategically placed in 15-minute travel “micromarkets” not served by existing larger clubs or outdoor courts. Each Regional Manager will operate at least 10 Padel Spots, with the first Spot being managed on-site by the Founder. Our innovative technology-enabled microclub model gives us a powerful first-mover advantage in the suburbs and near outdoor clubs–and the opportunity to become the dominant padel club brand in the U.S.
Pilot: Padel Spot Prime
Padel Spot Prime will be located directly off IH-35 in Round Rock, Texas, an affluent Austin suburb with over 250,000 residents, 15 minutes from The upscale Domain shopping center and residential area in North Austin, and only 17 minutes from two padel clubs with twenty outdoor padel courts–and no indoor courts.
This positions us to be the only club serving the northern suburban Austin region, as well as within a short highway drive from two clubs from which only 10% court bookings would fill Padel Spot Prime on inclement weather days.
The projected $1,481,950 required to develop the facility will be funded via an SBA 504 loan with a 10% contingency. The initial operational expenses for the first year funded by a 7(a) loan that will be collateralized through the added equity value created by developing the facility–as well as by equity capital. Padel Spot Prime will be managed on-site by Padel Spot’s Founder.
Padel Spot: Your Local Padel Club
One year after opening Padel Spot Prime, Padel Spot will be able to open two clubs per year without raising any equity capital, accumulating 9 clubs by the end of year 5–more with the aid of venture capital. This will enable it to rapidly establish footprint both regionally and nationally.
With subsequent clubs after Padel Spot Prime operating without the salary of the Regional Manager, which is absorbed by the first club and then amortized across subsequent clubs, Padel Spot becomes increasingly profitable. Additionally, as Padel Spot’s’ model is to acquire land and develop its own clubs, it is a real estate play that will develop substantial equity value as it grows.
Investment Terms
Given that both the enterprise and investment risk go down substantially as more capital is raised, as this will enable Padel Spot to operate at a loss for an extended period if need be, while also making it less reliant on debt, Padel Spot is seeking to raise up to $500,000 in equity capital at a tiered valuation.
All investors will receive pari passu pro-rata first position in the capital stack after the lenders, with their investment secured by the finished real estate development. The projected increase in value for the completed development over the base land and improvement costs should secure most of the equity investors' capital.
Additionally, beginning Year 3, investors will receive pro-rata distributions of 10% of net profit until a full return of capital, which per the projections will happen in Year 5 . Thereafter, once in a mature state, Padel Spot will pay dividends to all shareholders at a rate to be decided by the Board of Directors.
Contact Us
We’re full steam ahead, and we’re interested in connecting with anyone interested in what we’re building.
Whether you want to play, invest, get more information, or just talk padel with the founder, Eli M Blatt, just fill out your info and smash that send button, and Eli will personally get back to you.
Play on!