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Hey Padel enthusiasts welcome to Padel Smash Academy, I am Cesc and I am here with Julian and we're all about Padel! Whether you're new to the sport or an experienced player, you've come to the right place. Our goal is to provide you with the best tips & tricks, news, and weekly lessons to help you improve your game and take your Padel to the next level. So grab your Padel Racket and let's get started with all things Padel on Padel Smash Academy.
Are you looking for an investor or VC
to create a successful Padel club?
Join me, Julian and Magnus,
and we'll show you how.
Welcome Magnus.
Thank you for coming on the show.
Uh, why don't you tell us a little
bit about how you got into Padel?
Thank you for having me.
Um, so I um got involved in Padel just
recently actually about a year and a half
ago through my co founder and agent lombus
who Got some interesting contacts in
New Mexico that were looking to create a
whole new concept Um in Padel as everyone
knows Padel was is the the home of Padel
is in Mexico So it seemed quite fitting
for us to uh to get involved there.
So um, we um had a meeting and
found that there was some very
nice, um synergy between our Uh,
to companies and, uh, decided to
go forward with the project myself.
I've played Padel badly for,
uh, for a period of time.
I'm more of a.
I'm more of a tennis guy originally.
So, um, uh, the, the crossover has
been frustrating for the first couple
of months, so I'm starting to learn
the tactic a little bit better now.
So it's, uh, it's, it's work in progress.
Let's just leave it at that.
So now in your company, what other sports
did you work with prior to, to, to battle?
So originally, um, I'm, my background
is from, uh, football, soccer in
America and, uh, Olympic handball.
And my, my, um, co founder is also a.
Current handball professional.
And just recently, you know, we've,
um, um, Patrick has joined us, uh,
who is, uh, uh, quite a prominent,
um, handball, um, executive from a
professional handball as well, so he's
led clubs and, and, uh, done quite a lot
in Padel as well on the various tours.
So, um, we're, we're an eclectic bunch.
Great, great.
So why don't you talk to us a little
bit about your company and what
you, what services you guys provide.
So we're as a 9 1 o'clock is pretty new.
We've, we've focused on sports
and investment in sports.
And, um, for the last two or three years,
we've been working on, we're helping
players find new clubs, especially in
handball and, uh, venture done over
into football as well, but now in
the recent years, our main, primary,
primary focus is going into Padel, um,
Padelrs is as exploded as you guys know.
perfectly well across the world and
it's, uh, it's not very often you get the
chance to participate in growing a sport.
Um, I think it's pretty much a
once in a lifetime opportunity
and especially such a great sport
with so many, um, aspects to it.
So it just felt like a very natural
transition for us to get involved
and the opportunities are there.
Both from a business perspective,
but also from a sporting and
community As perspective as well.
We think that community is the vital
Component for the success of Padel.
So, uh, we want to bring that community
feeling to every Arena that we we set up.
Um, but not to forget
it's a business as well.
So it's it's a tricky.
Uh, It's a tricky combination
The balance, right?
So can you elaborate on that when it
comes to community and what are your
tactics or models, you know, when you're
consulting or putting together a club?
So for us, it's very, very
important that we have a economic
sustainability model, but also an
environmental and sports model.
Um, model.
So while that we mean that, uh, for a
arena and for a sport to succeed, you
need participation from the community.
If the community are involved, they
will help drive the sport forward.
Grassroots is where it is at.
Professional sports is, is, is fantastic.
It's a great sticker, but if you
don't have the grassroots, the
sports will fail pretty quickly.
So, um, coming from living
in Sweden, we we've seen.
The, the, the quote unquote
rise and fall of, of Padel.
Padel, what we have, um, seen
is that the amount of players has
been quite, um, increasing quite
significantly, even though the
amount of arenas have decreased.
So what we've done is we've taken
a lot of, uh, knowledge from that,
transferred that over into our, uh,
And the focus there is that it's gone
from local to corporate back to local.
So we want to focus on the local,
incorporate the business side
of it and create a model that is
sustainable outside of sports as well.
So our model involves restaurants,
it involves, uh, physiotherapy,
coaching, bars, um, and, and these,
The leasing of these venues then
generates income to the, to the venue.
So then we're not completely
dependent on bringing money and
bookings for the, for the arena.
And then the final piece of assistance is
my, my co founder who's French would say.
Is that we're also
installing spots as well.
So that's the, the money generated from
that also comes back into the business.
Let's talk a little bit more about that.
Those verticals.
Right?
Um, so how many verticals are there?
And and how many of them will.
In a pie will produce
money and what are what?
Which other ones are investment in time?
Let's just say to bring the community
together Well, so for us the the the
restaurant and the container area are
the two main community ones for us
they're going to be open completely
open to the public and and anyone
from uh, From outside can come in
watch a game while they eat or drink
and then Hopefully begin to play
puddle as well because that's right.
So that's really important
because the restaurant industry
is a difficult industry, right?
Managing that is a whole nother business.
Right?
So your best route based on your
experience is just sub leasing that out
and having a professional to correct.
Correct.
And I think if you do it yourself
and you have a background in
restaurant airing, that's fantastic.
If you don't, I think the safest
model is just to lease it out and
then set the ground rules for that.
And the same applies for
the containers as well.
If you're going to do that, rent out,
excuse me, how about beers and wine?
How about beers and wine and spirits?
Is that something you leave to the
restaurant or is that something you.
You hold on to them, because I know
the profit margins are pretty high.
And do you usually do that?
Because mixing, you know, that with
sports sometimes is not the best thing.
Agreed, agreed.
And I think that's a bit of
a balancing act to be had.
And I think that's pretty much down to
each individual, um, Arena to decide which
ones they want to go for um in in the one
that we're building in MetaPack Mexico
at the moment we will have a bar area
in addition to the restaurant which will
be run by the arena and not leased out.
There is going to be restrictions
in what's available there.
But we also are very keen to
be able to bring in outside
people to participate as well.
So it's, it is a balancing
act and it is a complex place.
You VC investor, angel investor, um,
obviously you're not seeing money, right?
Um, at what point, you know, you want to
look at, at companies already come proven
to what they can do or the potential
that they can do, like how far off does.
A, a business, uh, need to be
for you guys to invest into.
So, um, I'll give you the example of
the Mexico project that we have there.
They, they came with a concept and,
uh, we facilitated the finance there,
and then we developed a concept further
on from that as a consulting partner.
So, um, we found a angel investor who
was very interested in going into the
Miami district actually, but, um, to,
to be part of the Miami expansion,
you would have to then invest in.
Uh, facilities.
So that's in this instance, there's a,
there's an angel, um, investor from that.
We are pretty open in, in talking
to both venture capitalists
and, um, angel investors going
forward in our other sites.
So in, we're looking both in,
in America and the UK as our
primary to, um, expansion areas.
Obviously the U S, um, land becomes a
huge issue and, and finding an investor
Land already is is ideal for us either
through that we can lease it from them.
We can purchase Or they can use the land
as they see fit and then we can build
But the added advantage of our concept
is we can also retrofit buildings so
if you have a Um, an old building that
you can just be renovated our, um,
architect from, uh, from Barcelona.
He is very on board in, in,
in retrofitting a whole, um,
factory, for example, an old
factory, which can be repurposed.
Um, so again, the, Let's just say you
have a partner in a business and they have
an idea and have a good business plan.
How far did they have to get
before you guys consider them?
Uh, consider some best and then do they
have to have a piece of property 1st?
Um, you know, how far do they
have to get or is it pretty much
the idea of the business plan and
you're buying into the people?
We buy into the people.
I think that's the best way to do it
because property can be purchased.
It can be leased.
Uh, that's becomes a secondary problem.
However, if, if a person isn't
dedicated and driven enough to,
to run that business, we're not
interested in cooperating with
these people because it'll end up
to be a failure, unfortunately,
or less successful at least.
So for us, it's the person number one.
And then after the initial conversation
that we have with the potential business
owner or investor, then we move forward
a stage where we say, okay, where
are you thinking of expanding to?
So it could be anywhere in the world.
We've got contacts and, and, uh, ability
to, to, to go anywhere in the world.
And then we find out, okay,
do we work well together?
If that happens to be a yes,
then we move forward and then we
start the planning phase of how
a center wants to be looked at.
So is it shared the responsibility
of acquiring a piece of land or is it
based mostly on the that small business?
It's a it it really does
depend on the location.
Um us as a company We we're more than
willing to invest in in the project
ourselves as well If it seems to if it's
a project that we are passionate about
and the location really makes sense.
Otherwise we can find, um, investors
to invest in the land and purchase that
and have a loan agreement based on that.
And then you can expand,
uh, using that facility.
I got, I got a tough
question for you, Magnus.
So what, what are the terms, what,
what are the basic terms in, in this
Padel thing, going in from business,
getting investors or VC or angel,
what are the typical terms here?
So I can only speak, uh,
very broadly, obviously.
Um, so with the two models that we
have, the loan and the investment model.
So we typically find businesses and
match them with investors that we have.
Um, then we negotiate
a loan, um, percentage.
So an interest rates that that goes
through and the, and the time of period
that that is going to be run on, which
is what we are currently doing in Mexico.
Our other version is that we.
Um, either as a business investor in
the project or the project is invested,
uh, through several different investors
so that that can be, uh, expanded
upon and then it becomes an equity
model where we early on decide who is
the primary driver of this business.
And then we execute accordingly.
So if somebody is good at, um, the
property part of it, obviously that
has a huge impact on, on the project.
Okay.
So determining on what, what their value
is or what they're putting into the
business is going to determine the equity
split or the way you're saying, yeah,
it's a, it's a Scandinavian company.
I mean, we're very transparent and very
honest about how we want to do things.
So we try to keep it transparent.
Right.
And how do you determine if
you're going with a loan?
Uh, you know, a model or an
investment model, location,
location, location, I guess, I
suppose is the, is the main thing.
I mean, if we're going to build in, in
downtown London or downtown Tokyo, but
obviously a property prices becomes,
uh, an, an interesting concept.
Um, but, um, it really does just depends
on the, uh, the location, really.
And the equity part, it's, it's
variable too, or you always have a
set equity that you want to go into.
Thank you.
It's always based on project by project.
We don't want to exclude anyone.
So if somebody wants to have a
hundred percent equity on that,
we'll obviously facilitate that
and take a consulting role.
Um, but in, in most cases we will end
up with a 10 percent equity stake in
the company just to make sure that
we're part of the project going forward,
mainly because we've got the experience
from Europe, um, to drive this kind of
business, both from a sporting aspect,
but also from a business aspect as well.
So, and how do you adapt, um, you
know, one thing is to do business
in Sweden or Spain or France.
And then when you jump into this side
of the, you know, the world, it's,
it's a complete different thing, you
know, Mexico and the United States.
So, how do you learn that locally that
the permits and the whole process,
how it goes, you know, Miami with the
hurricanes, Mexico with the earthquakes,
um, or the different, you know, loss and
permits, how, how do you deal with that?
Um, we cry a lot.
Um, we not sleepless night nights.
? No.
We, we, we, as, as a company,
we've done business pretty much
across the world, across the globe.
So we have an idea of the cultural
differences between say, America
and, and Mexico or even the West
Coast and East coast, uh, of America.
There are differences there as well.
So I think for us it's, it's
important just to understand that.
Okay.
As foreigners, we're going into
a new market in terms of Mexico.
We've learned so much.
I mean, probably Mexico as a market
is completely different to most
other markets across the globe in,
on an investment point of view.
So I think from, from that point of
view, if we were able to do well in
Mexico, then we can do well pretty
much anywhere I firmly believe.
But the fact that we are Scandinavian
and you've seen lots of projects across
the world that have been driven by, by
Swedes, especially, um, the, the business.
Model fits very nicely
to the culture as well.
So as, as the people were very open,
we're very straightforward and we're very
direct in the way we approach business.
And I think that is pretty much
transferable to any culture.
That's fantastic.
So let's, now let's go back to the
projects where, how many current projects
you have, how many projects that you have
done already, give us a little bit of
feedback to our listeners and viewers.
Sure.
So Mexico is our first one.
So that's our proof of concept.
Um, we're in discussions at the moment
for three locations in the U S and
two in the UK and one in Australia.
We've got a, quite a firm option in the
mid, uh, in the middle of the States,
but that that's going to be coming
in at the end of next year probably.
But, um, our focus at the
moment is the U S and the UK.
Okay.
And the U S are you East coast?
You know, West Coast where
the projects come in.
So 2 of them are on the, um,
in the California district
and 1, sorry, there's 4.
So there's 1 in Miami, 1 in
Texas and 2 in California.
We're in Miami.
We haven't decided.
We're looking for some, we're looking
for a sugar daddy with a bit of land.
We'll have to have a 2nd, uh, you know,
interview there and talk about that.
That's exciting.
No, I think it's great.
Uh, uh, the West coast really
need some, some more Padel.
Uh, and there's so many projects.
So how is this sweet experience right now?
You know, you guys reach that peak you
bottom down now where you guys that.
And then compared to the United
States, where do you see it?
So I think, um, obviously Sweden is
very much more mature than, uh, than
most mosques, Spain and Sweden are
probably the most advanced markets,
uh, in the world at the moment.
So at the moment in Sweden,
there's about 450, 000 huddle
players, which is the same as golf.
Um, so I think, yeah, and, and it's,
it's quite an impressive number as well.
So, but the, what we've, the
interesting part is that we've
seen the amount of clubs go down.
So the concentration of clubs has
gone down and they become better clubs
that become better, uh, run clubs.
So what happened at the beginning,
everyone had a puddle called
everyone, especially during COVID.
And that was one of the oddly
strange, uh, one of the biggest,
um, explosion sports in Sweden.
Obviously, you know, that we didn't have a
full lockdown like the rest of the world.
We, we, we did things a
little bit differently.
Um, but the sport just exploded.
So everyone had a court.
What happened then was that a
big corporation came in, bought
them and they weren't, uh,
there was no sense of community.
There was no sense of pride in the clubs.
So what ended up happening there that
they got given back to the original owners
and are now driven very successfully
because they have that passion.
They have that connection to the community
and that connection is priceless.
And I think a lot of the
time it gets ignored or.
Um, it doesn't get taken
seriously, which is what we want
to avoid with our, uh, arenas.
So what are your tactics to do that?
I mean, it's easier said than done, right?
So do you get into politically?
Do you talk with businesses, corporations?
Why don't you talk to reviewers, uh,
how they can, they can start doing that.
So the foundation is all about money.
Unfortunately, any sport is, is,
uh, driven by the economic benefits,
but the health benefits as well.
So a healthy, um, a healthy
people and the better it is
for, for, for local government.
So what we've started to do now is
we've started to have conversations
with local government to see if we
can play into their, um, agendas.
locally.
We talk to local community leaders,
we talk to local businesses to find
out, engage with them to see, so how
can they get involved in the sport
in terms of advertising, in terms of
events at the venue, and what's missing
in the local community, is there a
specific kind of school that is, that
needs help getting more interested?
Kids more into sports, uh,
the elderly, the disabled.
So we'd like to talk to as many
people as we possibly can to form that
specific venue, according to the local
community, then with the containers and
the restaurant, we don't want chains.
We don't want these big McDonald's.
We don't want to have any, um, uh, big,
two big corporations for this because we.
It is a community based sport.
So we want local artists, we
want local, um, companies to
have the the coffee shop there.
We want, um, whoever is in the local
community and has the ability to to run a
shop there, help them get in, get into it.
Uh, so maybe even after school programs.
Okay.
And that exactly.
So we're working quite a lot with
a few charities in Mexico as well.
And we're going to be giving away
quite a few, um, scholarships to
local talents and, and through bull
puddle and a few other, and Novato
is also pitching in here as well.
Definitely a focus on, on giving young
talent the chance to actually do well.
Okay.
So let's talk to a future, you know,
Padel club owners or inspiring ones.
What, what boxes do, do they need
to have to check check mark off
for you guys to be like, Hey, this
is a good candidate to invest in.
So first passion, you have to
have a passion, um, and you have
to have the drive and willingness
to put in the long hours.
It's been, it's been at times painful,
um, to, to do the Mexican thing.
It's been frustrating.
Uh, there have been tears.
There's been quite a lot of drama.
Um, but um, If you don't have that
drive, you're not going to succeed So
what we'll do as as a as a consultancy,
we'll we'll sit with with the potential
Owners or investors and understand
so from an investor point of view.
This is what's required and
from a An owner point of view,
this is what is required.
And then we try and match the
people that work together that well.
So if somebody's really experienced in
business, but no sports, we try to pair
them with somebody who has a background
in sports and vice versa, obviously,
because, uh, it, it'll only benefit
whoever is running the, the place to
have the opposite counterpart running it.
And then we also obviously
pitch in with the marketing.
We pitch in with, um, anything
that we can do as a company.
To make them succeed.
And this is why we try and retain a 10
percent ownership in that because it
gives us the motivation to also do that.
And we don't want to take away the
money from the, the venue and the
owner either, because that money
can go back into community programs.
So we'll go, we'll sit with the community,
help them build community programs,
outreach programs, um, training programs,
school programs, whatever's required.
But we mustn't forget this is.
It's a money game.
They have to make a profit.
So in terms of Sorry, go ahead.
No, not finish.
I'm sorry.
So in terms of an angel investor, for
example, our investor There is a return
on investment within three to five years
and that is with very very realistic
booking numbers at about 40 to 50 Uh,
sorry 30 to 40 Looking and the rest of the
money comes from all of the other streams
in business like sponsorship rentals
restaurants Everything so, um, you said
10 percent agrees that to the agency.
I'm assuming.
No, that's their company.
Yes.
Okay.
So what, what services do you
provide for that 10 percent equity?
So we'll, we'll, um, put, um,
obviously we'll help them with
negotiations with sponsors.
We'll help them negotiation with finding,
um, what kind of courts they want.
So we were in initial conversations
with quite a few of the major court
manufacturers to, to be, to choose
one that will go into all of our
centers that will then obviously,
um, equate into a cheaper courts.
Uh, and lower prices.
So the investment becomes lower.
We try and keep, um, sponsors
on boards that are big enough.
So if we had a, um, Coca Cola, for
example, we would approach them and
say, listen, we've got centers in
America, Mexico, UK, we would like for
you to sponsor all of these venues and
we will, then we would distribute that
sponsorship money to all the centers.
And then obviously have an
agreement in place so that they can
generate extra revenue from that.
So we're basically facilitating them.
We'll, we'll help them with coaching.
We'll help them finding professionals.
We'll do anything that's required
effectively to make them a success.
So compare the, the, tell us how far
you're in advance with the Mexican.
Is the Mexican club already operational?
We're in the final stages
of, uh, Lawyers are involved.
Let's just put it that way.
So are you guys in Mexico
City or where are you?
Where are you looking?
Metapec.
So about an hour outside.
Toluca is the closest city.
And how many courts do you have there?
We will have nine standard, standard
courts and two championship courts
with an arena so that people can
watch the tournaments, et cetera.
Indoors or outdoors?
Uh, that is optional.
So at the moment we'll, we're going
to have a form of roof, but it's not
really closed because of obviously
the, the temperatures in Mexico
are very beneficial compared to,
you have to have a roof in Sweden.
Otherwise.
It's not an option, but in Mexico,
you have the option of not doing that.
And that's the benefit
of our model as well.
And you can choose without
Ruth, you can choose with Ruth.
You can basically mix and match according
to the requirements of the local venue.
And then here in the United States,
are you trying to do something similar?
We are, we want to take the concept and
move it to, to, to the United States.
Uh, and ideally we would, uh,
then look to, to go for areas
that are not fully developed yet.
Um, California, as you said, there,
there is a lot of things going on
there, but there's nothing community
based in the same way we are doing.
And I also think actually Miami
is, is a fantastic location for
that ability in a community.
There is such a passion for the
sport there, but, and again, most
of the venues there are prime.
Um, pricing wise and also, uh,
it's a very high end establishment.
We're looking for the mid markets to
to to really capture the imagination.
Now, um, in your model, is there an
exit plan at certain point or not?
No, we have no plans of exiting.
Um, so.
I'm not naive enough to think that
somebody's not gonna try and buy
us, uh, at some point if there is
a success and we'll cross that, uh,
bridge when we get to it, but we have
no plans of, of, uh, a jumping ship.
This is, this is our passion.
This is what we love to do.
We love sports and we love puddle.
So for us, it's, it's,
we're in the long haul.
I'm not necessarily in your
agency, but I mean in the clubs
that you're putting together.
So that, again, I think that depends.
I mean, if, for any club that we have an
ownership on, we would prefer that the
same owner sticks with it for a while.
However, considering they have a 90
percent stake in it, then we will support
a sale should that happen down the line.
That's it.
That's interesting.
So let me ask one thing.
Uh, you're originally
from Sweden, correct?
I'm actually half English, half Norwegian,
and I temporarily live in Sweden.
So you live in Sweden?
I do, yes.
So let me ask you something
very interesting that happened.
Um, Sweden was not, not even closing the
map in the world championships of battle.
You know, the seniors, they
opened on the, the juniors.
The, you guys ended up, Third
or the Swedes ended up third
on the last junior world cup.
Do you think what what do
you think happened there?
From being nowhere in the top 20
to ended up, you know, the on the
best top three on in the world We're
trying to make friends here, man.
Not enemies.
Come on.
Yeah So my norwegian part wants to uh,
really say something bad about sweden,
but my english part is stopping me.
So No, I'm going back to
what you were saying that.
Uh You You know, you guys have the
peak on the bottoms and then the clubs
that survive focus really in community
and programming and things like that.
And I believe that 1 of the things
that the suites really focus
on is in junior development.
And that was the result of, you know,
that junior development the last,
you know, 4 or 5 years that you guys
created a top notch junior teams.
That that's my belief.
No, I would have to agree with you there.
I think the grassroots as we've spoken
about is the key to success in any sport.
So if you have a strong
grassroots movement, then you
will see progress down the line.
I think what happened in Sweden was that
because there were so many Padel arenas.
Um, it wasn't developing in
the way that they wanted to.
And it was primarily focused
on the money side of it.
When COVID ended and the sport really, uh,
took its, um, um, place in, in the market.
I think that's when you started to see
the youth really getting involved in this.
Um, and because it's, it's a
smaller court, it's more explosive.
It's more, um, It's more complex.
I think that pretty much, um, sold it to
the Swedes, um, from that perspective.
You talked a little bit about
business, uh, and, and sports.
How do you relate both of them together
and how do you create a balance?
So Deloitte came out with a, uh,
uh, a survey and they found that
the Padel market by 2028 is
going to be worth approximately 4.
3 billion US dollars.
While the meetings and
facilities industry.
Is valued at 1.
2 trillion by that same year.
So for us, it seemed like a very
logical, um, connection to put the
two together because what we've seen
from the explosion in golf is that
golf and business go hand in hand.
We want to steal from golf effectively.
We want to recreate that model and,
and make it a business friendly,
but also a competitive environment
so that, um, it can, it can, it can
flourish in both the corporate world,
but also in the professional world.
Wow.
That's genius.
Yeah.
I mean, focus on something
that already works, you know?
Yeah.
Going back to the business world, I live
that every day that, uh, uh, at our club
ultra where People are telling me that,
you know, they come to the club, not only
just to play Padel, but they have nice
local rooms where they can shower and
then they can spend time a couple hours.
They're doing some work, you know,
you know, sitting on the tables
and having a cup of coffee and all
that and creating that community.
It goes with your.
Your vision as, as you know, as an
investor, I mean, I think that's the
key creating the whole 360 synergy.
It's crucial for the success of the club.
Is that also part of your model, creating
like a business, um, location where
people could do their work and stay
there, do their work and play Padel
and so forth, or even rent spaces out.
Um, is that also an option or
something you guys focus on?
So we have a business center.
Um, that will be available
to members as well.
Uh, we're, we're debating a little bit,
depending on location, whether it won't,
we could at least that out to it, kind
of a, we work version, um, just, uh,
uh, a successful one and, or that, that
we're good to rent it out by the hour,
either way, members of the club and
even non members, cause we don't want.
We don't want to lock it to members.
We want the community, everyone
to get involved in, in the sport.
So if you, if you start off in the
business center and you watch it,
you might get involved or vice versa.
You'll see that when you're
playing, you'll see people
going into a meeting room.
You'll inquire about that and you
can say, okay, well, I can do a
little bit of business here either
before or after I've played a game.
And then you can enjoy the
bar and then you keep them.
On the venue and and that's I think
is how you how you develop that
community and how you get people
involved in the sport As well.
It doesn't have to be sports only
it could be business And then we
see intra entrepreneurs that will
be setting up there as well and I
think business meetings and bringing
external people in So for us it kind
of made sense to try and marry the two.
Yeah That I truly believe that
the secret of success, you
know, and to invest in a club.
Um How many courts do they have to be?
Do they have to be indoor?
Can some of it be outdoor?
Um, what are you guys really looking for?
So, for the, for the courts,
I think it's very important.
Again, it depends on where it's located.
So, if it's in Toronto, outside
courts is not going to work, right?
So, if it's in Miami, Probably more likely
to have outdoor courts, majority and the
majority outside courts, but also have
indoor courts for schools, especially,
and for that security aspect of for
kids to come into the venue and feel
safe in, in, in, in that environment.
Um, if it's raining, you can still
play if it's, if you have a few
indoor courts so that you'll, you'll
always have that revenue flow in
Mexico, even though it is an extremely
warm country, we've, we've put a.
semi roof on.
So as I said, it'll cover everything
and stop the sun, but the wind flow and
the air flow will be constant there.
So there, you will have
an outdoor feel to it.
Um, and again, it depends on the location.
If you're on the coast, on the cliffs,
obviously having some sort of wind
deterrent would make sense, but if you're
inland, you might have some other issues.
So, what's the minimum core and
minimum, like, uh, square footage
or acreage of the property has to be
for you guys to invest in the club.
So, in terms of size, I think
what we've recommended is
that we have a minimum of 989.
Seven courts as a bare minimum, because
otherwise from a financial sustainability
model, it becomes a bit complicated.
Um, you need that many to drive the
restaurant, uh, and you need that
many to drive people in engagement
into the container shops as well,
and also to the business center.
Too small, people won't look
at it as a serious venture.
But if you have a decent size of seven,
eight, nine, then people will come up.
I don't think it should be too big either.
So you need to have a cap and we
haven't quite worked out the best
cap for that yet, but it's something
that will be coming pretty soon.
I think.
How about in areas that people want to
build clubs, but, uh, you know, there's
no exposure there yet and you get time.
You have to educate people.
Are you still looking for that many
courts or, uh, you're, you're going to
invest in a company and maybe that puts
up four courts with a option of potential
putting in another four or, or, or six.
I think, um, we would probably not
go into the areas where anything
less than seven or eight would go in.
I think it would be unfair for us
to go in there and unfair for the
investor to go in there as well.
So we wouldn't be able to
support them at the same level.
So we would probably, uh, advise them.
We can easily advise them from a
consultancy point of view, but from,
from our investors, I don't think it's,
it's, uh, the best way to, to go forward.
Even in an area that there's no exposure,
you need to educate people about.
Uh, uh, Padel or you won't, you won't
really, you'll, you'll avoid those areas.
Um, we won't avoid them, but we, we
would, we would prefer to attack that
from a consultancy point of view.
However, we have investors that
also are from home, have hometowns
in, in small areas that want
to get, um, really go for it.
Obviously we're not going
to say no to them either.
So let's talk a little bit, something
very, very interesting that you
mentioned before, sustainability.
Um, how's the whole process works and
what is exactly so for our viewers
and listeners to, to learn more.
So we have three sustainability
models, which is based on
economics, sport and environmental.
So for us, that is the, the,
the pillar to success as well
as the, uh, as everything else.
So from a environmental point of
view, we install sun cells on top
of, uh, the, all of our venues.
So that's the place is then self
sufficient and they can then obviously
sell then any access energy to the
grid back in various countries.
So I know here in Sweden, for example,
that is a very successful model because
we generate, even though the two months
that we do get sun, um, it's a lot of sun.
So we, they.
That energy can get sold back to the
grid and then, um, they, they can get
a decent income from that as well.
So that filters back in then
to the economic sustainability.
We want the, the venue to be sustainable,
not only based on sport, but also
from business and local community.
If you can get everyone involved,
um, you, we, we estimate that
70 percent of the income of the
center could be non sports related.
And I think from that point of view,
the stress of running a club becomes a
lot less, you can focus on the sports
instead of focusing on the money part.
And then you can really, really
drive, uh, the game home with,
with every aspect of the community.
That's amazing.
That's genius, to be honest with you.
Let's talk about something exciting.
Paquito Navarro.
What is the link between you,
the company, and the super mega
Padel star, Paquito Navarro?
Yes, we're lucky enough for
Patrick, our co partner, to
know a few people in Padel.
And we reached out to him,
and he loved our idea.
He thought it was a really good way for
him to get involved into Mexico as well.
So we're, we're currently talking to
him about, uh, having an exclusive
deal with his platform on, uh,
at our venues so that people can
then learn the sport a lot better.
And then the, his program could then.
help develop the next generation
of Mexican stars into battle.
So it's a great marriage for us.
We're incredibly lucky to
even be considered by him.
We're very eternally grateful for that.
But I think I think it's a
testament to the project.
All right, Magnus, let's talk
about the North American expansion.
And what are your goals there?
Well, we want, uh, our biggest
goal is to ensure that Padel is
entered into the Olympics in 2032.
For us, I think that's the, that's,
uh, the lofty goal that we have.
And to do that, you need a
considerable amount of players.
Any sport to get into the Olympics,
that is the holy grail, I think.
And if we can do it through America,
and I think, considering that, what's
it, 90 percent of all sponsorships into
the Olympics are American or Chinese, I
It is a market that needs to be strong.
Um, and with the financial muscle
in the, in the U S as well, and the,
uh, and the interest in sport in the
sport, uh, in the U S it makes sense.
So for us, the U S is our next frontier.
We've proven the concept we've got
interested, um, backers in Mexico.
Now we want to bring, bring
it over to America in all its
glory and further develop.
The concept there.
Okay, Magnus, thank you
for coming on the show.
We want to welcome you,
uh, wish you all the luck.
All the luck.
very much.
We are All Things Battle.