Sweden’s padel collapse offers a global lesson for the sport’s future

In just a few years, Sweden transformed from a padel hotspot into a cautionary tale. Between 2019 and 2022, the number of courts skyrocketed from a few hundred to over 4,000. In Uppsala alone, courts jumped from 14 to nearly 100 in just 12 months. For players, it was paradise—no waiting, courts everywhere. But the boom outpaced demand, and by 2024, over 100 facilities had shut down or been repurposed.

Three main factors drove the collapse: oversupply, soaring energy costs, and financial overreach. Electricity prices in southern Sweden averaged nearly five times higher than pre-2020 levels, making it unsustainable to heat and light large indoor venues. Many operators had expanded using borrowed capital. “We Are Padel” entered restructuring, while PDL United required a €24 million rescue. Some venues were converted into warehouses or discount supermarkets.

Survival through community building

Not all clubs disappeared. Some adapted and thrived. “We Are Padel,” part of the Lab Group, closed around 50 sites but retained 13. These surviving clubs shifted focus from simple bookings to building communities. They introduced coaching programs, junior sessions, leagues, and social events—creating spaces where players felt connected, not just scheduled.

The difference was clear: empty sheds with glass and nets failed. Clubs that offered a sense of belonging endured.

The UK’s steady rise and planning challenges

By mid-2025, the UK had around 900 courts across 300 venues. According to the Lawn Tennis Association (LTA), roughly 400,000 people played padel in 2024. Off-peak rates averaged £7 per person per hour, and demand remained strong.

However, growth has been slowed by planning objections, especially around noise and lighting. At Lee Valley Tennis Centre in London, plans to convert six indoor tennis courts were paused due to local resistance. The LTA now recommends noise surveys for courts within 50 meters of residential areas. Indoor builds are expensive, and suitable conversion sites are limited. The UK’s future in padel depends on careful pacing and early community engagement.

Global expansion with varied risks

Spain leads the world with over 16,000 courts. Italy and France have added thousands in recent years, driven by strong tennis cultures. In the Middle East, Dubai and Saudi Arabia are investing heavily in premium clubs and showcase events. South Africa’s Virgin Active is scaling from 65 to 100 courts, while the U.S. has around 200 courts with growing investor interest.

The Netherlands has integrated padel into its tennis ecosystem, with over 2,400 courts by 2023. Clubs like Conian have repurposed indoor tennis courts due to stronger returns per square meter.

Indonesia, meanwhile, represents a frontier market. Over 350 courts have opened in just two years, but unclear licensing and regulation make expansion risky. Jakarta alone now hosts more than 130 courts.

What sustainable growth looks like

Plonic and PwC forecast 70,000 padel courts globally by the end of 2026. But sustainability depends on learning from Sweden’s experience. Operators and investors should:

  • Validate local demand before building

  • Expand gradually

  • Diversify revenue through coaching, leagues, and social events

  • Engage communities early to manage noise and lighting concerns

  • Focus on building clubs, not just facilities

Markets with strong tennis traditions, warm climates, and strategic investment—like Italy, France, the UK, and the Gulf States—appear best positioned for long-term success. Smaller towns and colder regions with rapid overbuilding face greater risk.

Sweden’s story isn’t the end of padel. It’s the warning. The sport’s future will be shaped not by hype, but by planning, economics, and community.