How Pickleball Became One Massive Private-Equity Rollup

Key Players and Rollup Momentum

Dallas-based **Dundon Capital Partners**, led by entrepreneur Tom Dundon, exemplifies the trend as chairman of **Major League Pickleball (MLP)**. Dundon, known for sports investments like the NHL’s Carolina Hurricanes, has funneled capital into professionalizing pickleball through MLP, which features top players and media deals, creating a platform for facility rollups. This positions pickleball as a **private equity sports investment opportunity**, blending league ownership with venue consolidation.

• Facility Operators: Chains like YouFit Gyms are integrating pickleball courts to diversify offerings, with recent expansions in Florida signaling broader gym-pickleball hybrids as rollup targets[1].
• League and Pro Ecosystem: MLP’s growth under Dundon Capital attracts co-investors eyeing **sports franchise rollups**, similar to PE plays in minor league baseball or esports.
• International Expansion: In Asia, figures like Malaysia’s “prince of pickleball” Jimmy Liong partner with global brands like Franklin Sports, hinting at **cross-border pickleball investments** ripe for PE aggregation[6].

Financial Rationale: Why PE Loves Pickleball Rollups

Pickleball venues boast high margins—up to 40% EBITDA—due to low capex (indoor conversions cost $50,000-$100,000 per court) and recurring fees averaging $50-$100 monthly per member. Rollups follow the playbook of **private equity consolidation in fitness and recreation**, akin to Planet Fitness or OrangeTheory, where PE firms like TSG Consumer Partners or Roark Capital have scaled platforms to $1B+ valuations. McKinsey notes recreational sports rollups yield 3-5x returns via operational synergies, such as centralized procurement and digital booking tech.

Risks and Regulatory Horizons

While momentum builds, **pickleball private equity investments** face hurdles: zoning battles for court conversions, competition from tennis clubs, and antitrust scrutiny in league consolidation, echoing Epic Systems’ health tech monopoly challenges[4]. Bain & Company highlights regulatory risks in **sports infrastructure rollups**, urging diversified revenue like pro tours and e-commerce. Grants for recreational equipment underscore public-private synergies, with funding for pickleball nets and paddles signaling community buy-in[7].

Outlook: Next Wave of Deals

By 2026, expect **pickleball M&A activity** to accelerate, with PE firms targeting 500+ court operators for national chains. Dundon’s MLP could anchor a $500M+ platform sale, per BCG’s **recreational sector M&A trends 2025**. For C-suite dealmakers, pickleball rollups offer a **high-growth private equity play** in a fragmented $4B addressable market, blending lifestyle branding with scalable ops.