Major League Pickleball is on the verge of profitability and is now considering expansion, according to a league source speaking to CNBC.
The MLP, established in 2021, aims to achieve profitability at the league level by the fourth quarter of this year, as per the source who requested anonymity to discuss confidential matters.
At the team level, two out of the league’s 22 clubs are profitable, and one has broken even, the source added. The league aims for teams to reach average profitability by 2027.
As the MLP strives to reach this crucial milestone, expansion is now being considered.
For the first time in two years, the league is offering investors the chance to invest in America’s fastest-growing sport by selling up to two expansion franchises, the source revealed. With sports valuations soaring, the entry point into professional pickleball is more accessible for many investors.
The cost of a new team is uncertain, but the league is eyeing around $15 million per franchise, according to the source. Recently, the Arizona Drive announced the sale of a controlling stake valued at over $10 million.
If an expansion team deal materializes, the new owner would select the team’s location. Interest in franchises remains high, with nearly two dozen parties expressing interest in the past two weeks, the source noted.
New ownership would increase the league from 22 to potentially 24 teams and include equity in the parent company United Pickleball Association, full ownership of the team, and equity in DUPR, pickleball’s rating system. The plan is to launch the new teams by the 2026 season.
In an investor presentation reviewed by CNBC, the league highlights the opportunity to invest in a sports asset class with double-digit annual growth and the potential for additional revenue through sponsorships, events, and local activations.
“This is a unique opportunity to get involved early with a sport destined for success,” the presentation stated.
United Pickleball, the parent company of Major League Pickleball and the Professional Pickleball Association, was established in February following the merger of the once-competing leagues. The merger also involved $75 million in external investment from private equity, PPA Tour owners Tom Dundon and the Pardoe Family, and existing MLP team owners.
The UPA oversees 36 PPA and MLP events across three continents, offering year-round live content and events, making it the only pro sports league in America with such continuous coverage.
Since the merger, the league reports growth in attendance, sponsorships, and player salaries.
However, cash flow has been a concern. In January, CNBC obtained a league memo requesting a $10 million bridge loan to sustain growth while managing short-term cash requirements.
The league mentioned having $2 million to $4 million in cash on the balance sheet at the start of 2025 but sought the loan due to front-loaded player contracts with significant payments due in January and April 2025.
In December, the league announced that the average pay for over 60 women on the PPA Tour and in Major League Pickleball was $260,000 in 2024, surpassing more established leagues like the WNBA and NWSL.
The league has attracted high-profile celebrity investors such as Patrick Mahomes, LeBron James, Kevin Durant, and Heidi Klum.
Pickleball participation has surged by over 223% in the past three years, according to the Sports and Fitness Industry Association, with all age groups experiencing an increase in casual players.
