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.
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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.
“This is a once in a generation moment to get involved early with a sport that is bound for success,” the presentation said.
Anna Leigh Waters of the New Jersey Fives rallies the ball during a Major League Pickleball match at Wollman Rink in New York on Sept. 21, 2024.
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United Pickleball, the parent company of Major League Pickleball and the Professional Pickleball Association, was formed in February after the once-rival leagues merged. The deal also included $75 million of outside investment from private equity, PPA Tour owners Tom Dundon and the Pardoe Family, as well as existing MLP team owners.
The UPA consists of 36 PPA and MLP events across three continents. It is the only pro sports league in America with year-round live content and events.
Since the merger, the league says it has grown attendance, sponsorship and even player salaries.
Yet, cash flow has been an issue. In January, CNBC obtained a memo from the league requesting a $10 million bridge loan to “maintain their growth trajectory while managing short term cash needs.”
In the memo, the league said it had $2 million to $4 million of cash on the balance sheet heading into 2025, but was seeking the loan because of the way player contracts are front-loaded with larger shares due in January and April 2025.
The average pay of the more than 60 women on the PPA Tour and in Major League Pickleball was $260,000 in 2024, the league announced in December. That is higher than more established leagues such as the WNBA and NWSL.
The league has attracted A-list celebrity investors such as Patrick Mahomes, LeBron James, Kevin Durant and Heidi Klum.
Pickleball has grown more than 223% in participation over the past three years, according to the Sports and Fitness Industry Association, with every age group seeing an uptick in casual players.
