# Padel Hall — Question Bank & Gap Analysis

> **What this file is**: A structured question bank covering the full universe of questions a padel hall entrepreneur needs to answer — from concept to exit. It is **not** an article for publication.
>
> **Purpose**: Gap analysis — identify which questions Padelnomics already answers (planner, city articles, pipeline data, business plan PDF) and which are unanswered gaps we could fill to improve product value.
>
> **Coverage legend**:
> - `ANSWERED` — fully covered by the planner, city articles, or BP export
> - `PARTIAL` — partially addressed; notable gap or missing depth
> - `GAP` — not addressed at all; actionable opportunity

---

## Gap Analysis Summary

| Tier | Gap | Estimated Impact | Status |
|------|-----|-----------------|--------|
| 1 | Subsidies & grants (Germany) | High | Not in product; data exists in `research/padel-hall-economics.md` |
| 1 | Buyer segmentation (sports club / commercial / hotel / franchise) | High | Not in planner; segmentation table exists in research |
| 1 | Indoor vs outdoor decision framework | High | Planner models both; no comparison table or decision guide |
| 1 | OPEX benchmarks shown inline | Medium-High | Planner has inputs; defaults not visually benchmarked |
| 2 | Booking platform strategy (Playtomic vs Matchi vs custom) | Medium | Zero guidance; we scrape Playtomic so know it well |
| 2 | Depreciation & tax shield | Medium | All calcs pre-tax; Germany: 30% effective, 7yr courts |
| 2 | Legal & regulatory checklist (Germany) | Medium | Only permit cost line; Bauantrag, TA Lärm, GmbH etc. missing |
| 2 | Court supplier selection framework | Medium | Supplier directory exists; no evaluation criteria |
| 2 | Staffing plan template | Medium | BP has narrative field; no structured role × FTE × salary |
| 3 | Zero-court location pages (white-space pSEO) | High data value | `location_opportunity_profile` scores them; none published |
| 3 | Pre-opening / marketing playbook | Low-Medium | Out of scope; static article possible |
| 3 | Catchment area isochrones (drive-time) | Low | Heavy lift; `nearest_padel_court_km` is straight-line only |
| 3 | Trend/fad risk quantification | Low | Inherently speculative |

---

## Table of Contents

1. [Key Questions to Answer](#key-questions-to-answer)
2. [Steps — In Detail](#steps--in-detail)
3. [Plans You Need to Create](#plans-you-need-to-create)
4. [Expert Financial Calculation](#expert-financial-calculation)
5. [How to Decide Where to Build](#how-to-decide-where-to-build)
6. [Corporate Finance & Valuation Perspective](#corporate-finance--valuation-perspective)
7. [Risk Register](#risk-register)

---

## Key Questions to Answer

### Market & Demand

> **COVERAGE: PARTIAL** — Venue counts, density (venues/100K), Market Score, and Opportunity Score per city are all answered by pipeline data (`location_opportunity_profile`) and surfaced in city articles. Missing: actual player counts, competitor utilization rates, household income / age demographics for the catchment area. No drive-time isochrone analysis (Tier 3 gap).

- How many padel players are in your target area? Is the sport growing locally or are you betting on future adoption?
- What's the competitive landscape — how many existing courts within a 20–30 minute drive radius? Are they full? What are their peak/off-peak utilization rates?
- What's the demographic profile of your catchment area (income, age, sports participation)?
- Is there unmet demand (waitlists at existing facilities, people driving far to play)?

### Site & Location

> **COVERAGE: GAP** — The planner has a rent/land cost input and a `own` toggle for buy vs lease, but there is no guidance on site selection criteria (ceiling height, column spacing, zoning classification, parking ratios). A static article or checklist would cover this. See also Tier 2 gap: legal/regulatory checklist.

- Do you want to build new (greenfield), convert an existing building (warehouse, industrial hall), or add to an existing sports complex?
- What zoning and building regulations apply? Is a padel hall classified as sports, leisure, commercial?
- What's the required ceiling height? (Minimum ~8–10m for indoor padel, ideally 10m+)
- What parking capacity do you need?

### Product & Scope

> **COVERAGE: PARTIAL** — Court count is fully answered (planner supports 1–12 courts, sensitivity analysis included). Ancillary revenue streams (coaching, F&B, pro shop, events, memberships, corporate) are modelled. Indoor vs outdoor is modelled but there is no structured decision framework comparing CAPEX, revenue ceiling, seasonal risk, noise, and permits (Tier 1 gap #3). Quality level / positioning is not addressed.

- How many courts? (Typically 4–8 is the sweet spot for a standalone hall; fewer than 4 struggles with profitability, more than 8 requires very strong demand)
- Indoor only, outdoor, or hybrid with a retractable/seasonal structure?
- What ancillary offerings: pro shop, café/bar/lounge, fitness area, changing rooms, padel school/academy?
- What quality level are you targeting — premium/club feel or budget/volume play?

### Financial

> **COVERAGE: ANSWERED** — All four questions are directly answered by the planner: equity/debt split, rent/land cost, real peak/off-peak prices per city (from Playtomic via `planner_defaults`), utilization ramp curve (Year 1–5), and breakeven utilization (sensitivity grid).

- What's your total budget, and what's the split between equity and debt?
- What rental or land purchase cost can you sustain?
- What are realistic court booking prices in your market?
- What utilization rate is realistic in year 1, 2, 3?
- What's the breakeven point?

### Legal & Organizational

> **COVERAGE: GAP** — Only a permit cost line item exists in CAPEX. No entity guidance (GmbH vs UG vs Verein), no permit checklist, no license types, no insurance guidance. A Germany-first legal/regulatory checklist (Bauantrag, Nutzungsänderung, TA Lärm, Gewerbeerlaubnis, §4 Nr. 22 UStG sports VAT exemption) would be high-value static content (Tier 2 gap #7). Buyer segmentation (sports club vs. commercial) affects entity choice and grant eligibility (Tier 1 gap #2).

- What legal entity will you use?
- Do you need partners (operational, financial, franchise)?
- What permits, licenses, and insurance do you need?
- Do you need a liquor license (if serving alcohol in lounge)?

---

## Steps — In Detail

### Phase 1: Feasibility & Concept (Month 1–3)

> **COVERAGE: ANSWERED** — This phase is fully supported. Market research → city articles (venue density, Market Score, Opportunity Score). Concept development → planner inputs. Location scouting → city articles + planner. Preliminary financial model → planner. Go/no-go → planner output (EBITDA, IRR, NPV).
>
> Missing: Buyer segmentation (Tier 1 gap #2) — the planner treats all users identically. A "project type" selector (sports club / commercial / hotel / franchise) would adjust CAPEX defaults, grant eligibility, and entity guidance.

1. **Market research**: Survey local players, visit competing facilities, analyze demographics within a 15–20 minute drive radius. Talk to padel coaches and club organizers.
2. **Concept development**: Define your number of courts, target audience, service level, and ancillary revenue streams.
3. **Location scouting**: Identify 3–5 candidate sites. Evaluate each on accessibility, visibility, size, ceiling height (if conversion), zoning, and cost.
4. **Preliminary financial model**: Build a rough P&L and investment budget to test whether the concept is viable at all.
5. **Go/no-go decision**: Based on the above, decide whether to proceed.

### Phase 2: Planning & Design (Month 3–6)

> **COVERAGE: PARTIAL** — Detailed financial model (step 9) and financing (step 10) are fully answered by the planner (DSCR, covenants, sensitivity). Court supplier selection (step 8) has a partial answer: a supplier directory exists in the product but there is no evaluation framework (Tier 2 gap #8: origin, price/court, warranty, glass type, installation, lead time). Permit process (step 11) is a gap (Tier 2 gap #7). Site security and architect hiring are operational advice, out of scope.

6. **Secure the site**: Sign a letter of intent or option agreement for purchase or lease.
7. **Hire an architect** experienced in sports facilities. They'll produce floor plans, elevations, structural assessments (for conversions), and MEP (mechanical, electrical, plumbing) layouts.
8. **Padel court supplier selection**: Get quotes from manufacturers (e.g., Mondo, Padelcreations, MejorSet). Courts come as prefabricated modules — coordinate dimensions, drainage, lighting, and glass specifications with your architect.
9. **Detailed financial model**: Now that you have real cost quotes, refine your investment budget and operating projections.
10. **Secure financing**: Approach banks with your business plan and financial model. Typical leverage: 50–70% debt, 30–50% equity.
11. **Obtain permits**: Submit building permit applications, environmental assessments if required, and any change-of-use applications.

### Phase 3: Construction / Conversion (Month 6–12)

> **COVERAGE: PARTIAL** — Booking system (step 15) is partially addressed: booking system cost is a planner input, but there is no guidance on platform selection (Playtomic vs Matchi vs custom) despite this being a real decision with revenue and data implications (Tier 2 gap #5). Construction, installation, fit-out, and inspections are operational steps outside Padelnomics' scope.

12. **Tender and contract construction**: Either a general contractor or construction management approach. Key trades: structural/civil, flooring, HVAC (critical for indoor comfort), electrical (LED court lighting to specific lux standards), plumbing.
13. **Install padel courts**: Usually done after the building shell is complete. Courts take 2–4 weeks to install per batch.
14. **Fit-out ancillary areas**: Reception, changing rooms, lounge/bar, pro shop.
15. **IT & booking system**: Install a court booking system (e.g., Playtomic, Matchi, or custom), POS, access control.
16. **Inspections and certifications**: Fire safety, building code compliance, accessibility.

### Phase 4: Pre-Opening (Month 10–13)

> **COVERAGE: PARTIAL** — Staffing plan (step 17): the BP export has a `staffing_plan` narrative field, but there is no structured template with role × FTE × salary defaults. Research benchmarks (€9.9–14.2K/month for 2–3 FTE + manager) could pre-fill this based on court count (Tier 2 gap #9). Marketing playbook (step 18): not addressed; could be a static article (Tier 3 gap #11). Soft/grand opening: out of scope.

17. **Hire staff**: Manager, reception, coaches, cleaning, potentially F&B staff.
18. **Marketing launch**: Social media, local partnerships (sports clubs, corporate wellness), opening event, introductory pricing.
19. **Soft opening**: Invite local players, influencers, press for a trial period.
20. **Grand opening**.

### Phase 5: Operations & Optimization (Ongoing)

> **COVERAGE: PARTIAL** — Utilization monitoring and financial review are covered by the planner model. Upsell streams (coaching, equipment, F&B, memberships) are all revenue line items. Community building and dynamic pricing strategy are not addressed — these are operational, not data-driven, and are out of scope.

21. **Monitor utilization** by court, time slot, and day. Adjust pricing dynamically.
22. **Build community**: Leagues, tournaments, social events, corporate bookings.
23. **Upsell**: Coaching, equipment, food/beverage, memberships.
24. **Review financials** quarterly against your model. Adjust.

---

## Plans You Need to Create

> **COVERAGE: PARTIAL** — Business Plan and Financial Plan are both fully answered (planner + BP PDF export with 15+ narrative sections). Architectural Plans, Marketing Plan, and Legal/Permit Plan are outside the product's scope. Operational Plan is partial: staffing and booking system inputs exist but lack depth (Tier 2 gaps #5, #9).

- **Business Plan** — the master document covering market analysis, concept, operations plan, management team, and financials. This is what banks and investors want to see.
- **Architectural Plans** — floor plans, cross-sections, elevations, structural drawings, MEP plans. Required for permits and construction.
- **Financial Plan** — the core of your business plan. Includes investment budget, funding plan, P&L forecast (3–5 years), cash flow forecast, and sensitivity analysis.
- **Marketing Plan** — pre-launch, launch, and ongoing. Channel strategy, pricing strategy, partnership plan.
- **Operational Plan** — staffing plan, booking and pricing model, maintenance schedule, supplier contracts.
- **Legal/Permit Plan** — timeline of all required permits, licenses, insurance policies, and legal entity formation steps.

---

## Expert Financial Calculation

*Based on a 6-court indoor facility as a reference case.*

### Investment Budget (CAPEX)

> **COVERAGE: ANSWERED** — The planner covers all 15+ CAPEX line items for both lease (`rent`) and purchase (`own`) scenarios. Subsidies and grants are **not** modelled (Tier 1 gap #1): `research/padel-hall-economics.md` documents Landessportbund grants (35% for sports clubs), KfW 150 loans, and a real example of €258K → €167K net after grant (padel-court.de). A "Fördermittel" (grants) section in the BP or a callout in DE city articles would surface this.

| Item | Estimate |
|---|---|
| Building lease deposit or land | €50,000–€200,000 |
| Construction / conversion | €400,000–€800,000 |
| 6 padel courts (installed) | €180,000–€300,000 (€30k–€50k per court) |
| Lighting (LED, 500 lux per court) | €30,000–€60,000 |
| HVAC system | €50,000–€120,000 |
| Changing rooms, reception, lounge fit-out | €80,000–€150,000 |
| IT, booking system, access control | €15,000–€30,000 |
| Furniture, equipment, pro shop inventory | €20,000–€40,000 |
| Architect, permits, legal, consulting | €40,000–€80,000 |
| Marketing pre-launch | €15,000–€30,000 |
| Working capital reserve | €50,000–€100,000 |
| **Total** | **€930,000–€1,910,000** |

Realistic midpoint for a solid 6-court hall: **~€1.2–1.5M**.

### Revenue Model

> **COVERAGE: ANSWERED** — Court utilization × price per hour is the core model. Real peak/off-peak prices per city are pre-filled via `planner_defaults` from Playtomic data. Ramp curve (Year 1–5 utilization), 6 ancillary streams, and monthly seasonal curve are all modelled.

Core driver: **court utilization × price per hour**.

- 6 courts × 15 bookable hours/day × 365 days = **32,850 court-hours/year** (theoretical max)
- Realistic utilization: Year 1 ~45%, Year 2 ~60%, Year 3 ~70%
- Average price per court-hour: €40–€60 (varies by market, peak vs. off-peak)
- Blended average: ~€45/hour

| Revenue Stream | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Court rental (45%/60%/70% util.) | €665k | €887k | €1,035k |
| Coaching & academy | €60k | €90k | €120k |
| F&B / bar | €40k | €65k | €80k |
| Pro shop / equipment | €15k | €25k | €30k |
| Events & corporate | €20k | €40k | €60k |
| **Total Revenue** | **€800k** | **€1,107k** | **€1,325k** |

### Operating Costs (OPEX)

> **COVERAGE: PARTIAL** — All OPEX line items exist as planner inputs. The defaults are reasonable but are not visually benchmarked against market data (Tier 1 gap #4). Research benchmarks from `research/padel-hall-economics.md` §7: electricity €2.5–4.5K/month, staff €9.9–14.2K/month for 2–3 FTE + manager, rent €8–15K/month. Showing "typical range for your market" next to each OPEX input field would improve trust in the defaults.

| Cost Item | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Rent / lease | €120k | €123k | €127k |
| Staff (5–8 FTE) | €200k | €220k | €235k |
| Energy (lighting, HVAC) | €45k | €50k | €55k |
| Maintenance & repairs | €20k | €25k | €30k |
| Marketing | €40k | €30k | €25k |
| Insurance | €12k | €12k | €13k |
| Booking system / IT | €8k | €8k | €9k |
| COGS (F&B, shop) | €25k | €40k | €48k |
| Admin, accounting, legal | €20k | €22k | €24k |
| **Total OPEX** | **€490k** | **€530k** | **€566k** |

### Profitability

> **COVERAGE: ANSWERED** — EBITDA, EBITDA margin, debt service, and free cash flow after debt are all computed by the planner for all 60 months.

| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| **EBITDA** | €310k | €577k | €759k |
| EBITDA margin | 39% | 52% | 57% |
| Debt service (assuming €800k loan, 5%, 10yr) | ~€102k | ~€102k | ~€102k |
| **Free cash flow after debt** | ~€208k | ~€475k | ~€657k |

### Key Metrics to Track

> **COVERAGE: ANSWERED** — Payback period, IRR (equity + project), NPV, MOIC, DSCR per year, breakeven utilization, and revenue per available hour are all computed and displayed.

- **Payback period**: Typically 3–5 years for a well-run padel hall
- **ROI on equity**: If you put in €500k equity and generate €300k+ annual free cash flow by year 3, that's a 60%+ cash-on-cash return
- **Breakeven utilization**: Usually around 35–40% — below which you lose money
- **Revenue per court per year**: Target €150k+ at maturity

### Sensitivity Analysis

> **COVERAGE: ANSWERED** — 12-step utilization sensitivity and 8-step price sensitivity are both shown as grids, each including DSCR values.

Model what happens if utilization is 10% lower than planned, if the average price drops by €5, or if construction costs overrun by 20%. This is what banks want to see — that you survive the downside.

---

## How to Decide Where to Build

> **COVERAGE: PARTIAL overall** — The product answers competition mapping (venue density, Opportunity Score) and rent/cost considerations (planner input). Missing: drive-time catchment analysis (Tier 3 gap #12 — would need isochrone API), accessibility/visibility/building suitability assessment (static checklist possible), growth trajectory (no new-development data), and regulatory environment (Tier 2 gap #7).
>
> **Tier 3 opportunity**: `location_opportunity_profile` scores thousands of GeoNames locations including zero-court towns. Only venues with existing courts get a public article. Generating pSEO pages for top-scoring zero-court locations would surface "build here" recommendations (white-space pages).

1. **Catchment area analysis**: Draw a 15-minute and 30-minute drive-time radius around candidate sites. Analyze population density, household income, age distribution (25–55 is the core padel demographic), and existing sports participation rates.

2. **Competition mapping**: Map every existing padel facility within 30 minutes. Call them, check their booking systems — are courts booked out at peak? If competitors are running at 80%+ utilization, that's a strong signal of unmet demand.

3. **Accessibility**: Is the site easy to reach by car? Is there public transit access? Is there adequate parking (rule of thumb: 2–3 spaces per court minimum)?

4. **Visibility**: A location on a main road or near a commercial hub generates organic awareness. A hidden industrial estate requires more marketing spend.

5. **Building suitability**: For a conversion, check ceiling height (10m+), column-free spans (a standard padel court is 20m × 10m, so you need clear spans of at least 22m × 12m per court including safety zones), floor load capacity, and utility connections.

6. **Rent/cost level**: Balance the desire for a premium location against the need for affordable rent. Padel halls need large floor areas (1,500–3,000 sqm for 4–8 courts plus amenities), so rent per sqm matters enormously. Industrial or light commercial zones often offer the best cost-to-space ratio.

7. **Growth trajectory**: Is the area developing? Are there new residential or office developments planned nearby? Building ahead of growth can give you first-mover advantage.

8. **Regulatory environment**: Some municipalities are more supportive of sports facilities than others. Check zoning, noise regulations (especially if considering outdoor courts), and the speed of permit processes.

---

## Corporate Finance & Valuation Perspective

### NPV & IRR

> **COVERAGE: ANSWERED** — Both equity IRR and project IRR are computed. NPV is shown with the WACC input. Hurdle rate is a user input.

Discount your projected free cash flows at your WACC (or required return on equity if all-equity financed) to get a net present value. The IRR tells you whether the project clears your hurdle rate. For a padel hall, you'd typically want an unlevered IRR of 15–25% to justify the risk of a single-asset, operationally intensive business. Compare this against alternative uses of your capital.

### WACC & Cost of Capital

> **COVERAGE: ANSWERED** — WACC is a planner input used in NPV calculations. Debt cost and equity cost are separately configurable.

If you're blending debt and equity, calculate your weighted average cost of capital properly. Bank debt for a sports facility might run 4–7% depending on jurisdiction and collateral. Your equity cost should reflect the illiquidity premium and operational risk — this isn't a passive real estate investment, it's an operating business. A reasonable cost of equity might be 12–20%.

### Terminal Value

> **COVERAGE: ANSWERED** — Terminal value is computed as EBITDA × exit multiple at the end of the hold period. MOIC and value bridge are displayed.

If you model 5 years of explicit cash flows, you need a terminal value. You can use a perpetuity growth model (FCF year 5 × (1+g) / (WACC – g)) or an exit multiple. For the exit multiple approach, think about what a buyer would pay — likely 4–7x EBITDA for a mature, well-run single-location padel hall, potentially higher if it's part of a multi-site rollout story.

### Lease vs. Buy

> **COVERAGE: ANSWERED** — The `own` toggle in the planner changes the entire CAPEX/OPEX structure: land purchase replaces lease deposit, mortgage replaces rent, and property appreciation is modelled in terminal value.

A critical capital allocation decision. Buying the property ties up far more capital but gives you residual asset value and eliminates landlord risk. Leasing preserves capital for operations and expansion but exposes you to rent increases and lease termination risk. Model both scenarios and compare the risk-adjusted NPV. Also consider sale-and-leaseback if you build on owned land.

### Operating Leverage

> **COVERAGE: ANSWERED** — The sensitivity grids explicitly show how a 10% utilization swing affects EBITDA and DSCR.

A padel hall has high fixed costs (rent, staff base, debt service) and relatively low variable costs. This means profitability is extremely sensitive to utilization. Model the operating leverage explicitly — a 10% swing in utilization might cause a 25–30% swing in EBITDA. This is both the opportunity and the risk.

### Depreciation & Tax Shield

> **COVERAGE: GAP** — All planner calculations are pre-tax (Tier 2 gap #6). Adding a depreciation schedule and effective tax rate would materially improve the financial model for Germany: 7-year depreciation for courts/equipment, ~30% effective tax rate (15% KSt + 14% GewSt). This would require jurisdiction selection (start with Germany only). Non-trivial but the most common user geography.

Padel courts depreciate over 7–10 years, building fit-out over 10–15 years, equipment over 3–5 years. The depreciation tax shield is meaningful. Interest expense on debt is also tax-deductible. Model your effective tax rate and the present value of these shields — they improve your after-tax returns materially.

### Working Capital Cycle

> **COVERAGE: ANSWERED** — Pre-opening cash burn and ramp-up period are modelled in the 60-month cash flow. Working capital reserve is a CAPEX line item.

Padel halls are generally working-capital-light (customers pay at booking or on arrival, you pay suppliers on 30–60 day terms). But model the initial ramp-up period where you're carrying costs before revenue reaches steady state. The pre-opening cash burn and first 6–12 months of sub-breakeven operation is where most of your working capital risk sits.

### Scenario & Sensitivity Analysis

> **COVERAGE: ANSWERED** — Utilization sensitivity (12 steps) and price sensitivity (8 steps) grids are shown, both with DSCR. Bear/base/bull narrative is covered in the BP export.

Model three scenarios (bear/base/bull) varying utilization, pricing, and cost overruns simultaneously. Identify the breakeven utilization rate precisely. A Monte Carlo simulation on the key variables (utilization, average price, construction cost, ramp-up speed) gives you a probability distribution of outcomes rather than a single point estimate.

### Exit Strategy & Valuation

> **COVERAGE: ANSWERED** — Hold period, exit EBITDA multiple, terminal value, MOIC, and value bridge are all displayed in the planner.

Think about this upfront. Are you building to hold and cash-flow, or building to sell to a consolidator or franchise operator? The exit multiple depends heavily on whether you've built a transferable business (brand, systems, trained staff, long lease) or an owner-dependent operation. Multi-site operators and franchise groups trade at higher multiples (6–10x EBITDA) than single sites.

### Optionality Value

> **COVERAGE: GAP** — Real option value (second location, franchise, repurposing) is mentioned in the BP narrative but not quantified. Out of scope for the planner; noting as a caveat in the BP export text would be sufficient.

A successful first hall gives you the option to expand — second location, franchise model, or selling the playbook. This real option has value that a static DCF doesn't capture. Similarly, if you own the land/building, you have conversion optionality (the building could be repurposed if padel demand fades).

### Counterparty & Concentration Risk

> **COVERAGE: PARTIAL** — The planner models this implicitly (single-site, single-sport), and DSCR warnings flag over-leverage. No explicit counterparty risk section. Mentioning it in the BP risk narrative would be low-effort coverage.

You're exposed to a single landlord (lease risk), a single location (demand risk), and potentially a single sport (trend risk). A bank or sophisticated investor will flag all three. Mitigants include long lease terms with caps on escalation, diversified revenue streams (F&B, events, coaching), and contractual protections.

### Subsidies & Grants

> **COVERAGE: GAP — Tier 1 priority.** `research/padel-hall-economics.md` documents: Landessportbund grants (up to 35% CAPEX for registered sports clubs), KfW 150 low-interest loans, and a worked example: €258K gross → €167K net CAPEX after grant. The planner has no grants input. Quick wins: (a) add a "Fördermittel" accordion section to DE city articles; (b) add a grant percentage input to the planner CAPEX section (reduces total investment and boosts IRR). Note: grant eligibility depends on buyer type (Tier 1 gap #2) — sports clubs qualify, commercial operators typically do not.

Many municipalities and national sports bodies offer grants or subsidized loans for sports infrastructure. In some European countries, this can cover 10–30% of CAPEX. Factor this into your funding plan — it's essentially free equity that boosts your returns.

### VAT & Tax Structuring

> **COVERAGE: GAP** — Not modelled. Germany-specific: court rental may qualify for §4 Nr. 22 UStG sports VAT exemption (0% VAT) if operated by a non-commercial entity; commercial operators pay 19% VAT on court rental. F&B is 19% (or 7% eat-in). Getting this wrong materially affects revenue net-of-VAT. Worth a callout in the legal/regulatory article (Tier 2 gap #7).

Depending on your jurisdiction, court rental may be VAT-exempt or reduced-rate (sports exemption), while F&B is standard-rated. This affects pricing strategy and cash flow. The entity structure (single GmbH, holding structure, partnership) has implications for profit extraction, liability, and eventual exit taxation. Worth getting tax advice early.

### Insurance & Business Interruption

> **COVERAGE: PARTIAL** — Insurance is a planner OPEX line item. No guidance on coverage types or BI insurance sizing. Low priority to expand.

Price in comprehensive insurance — property, liability, business interruption. A fire or structural issue that shuts you down for 3 months could be existential without BI coverage. This is a real cost that's often underestimated.

### Covenant Compliance

> **COVERAGE: ANSWERED** — DSCR is computed for each of the 5 years and shown with a warning band. LTV warnings are also displayed.

If you take bank debt, you'll likely face covenants — DSCR (debt service coverage ratio) minimums of 1.2–1.5x, leverage caps, possibly revenue milestones. Model your covenant headroom explicitly. Breaching a covenant in year 1 during ramp-up is a real risk if you've over-leveraged.

### Inflation Sensitivity

> **COVERAGE: ANSWERED** — The planner has separate `revenue_growth_rate` and `opex_growth_rate` inputs, allowing asymmetric inflation scenarios.

Energy costs, staff wages, and maintenance all inflate. Can you pass these through via price increases without killing utilization? Model a scenario where costs inflate at 3–5% but you can only raise prices by 2–3%.

### Residual / Liquidation Value

> **COVERAGE: PARTIAL** — Terminal/exit value is modelled (EBITDA multiple). A true liquidation scenario (courts resale, lease termination penalties, building write-off) is not separately modelled. Sufficient for the current product.

In a downside scenario, what are your assets worth? Padel courts have some resale value. Building improvements are largely sunk. If you've leased, your downside is limited to equity invested plus any personal guarantees. If you've bought property, the real estate retains value but may take time to sell. Model the liquidation scenario honestly.

---

## Risk Register

### Existential Risks

> **COVERAGE: PARTIAL** — Trend/fad risk is acknowledged in the BP narrative but not quantified (Tier 3 gap #13). FIP/Playtomic data (7,187 new courts globally in 2024, +26% YoY new clubs) exists but long-term quantification is inherently speculative. Force majeure/pandemic risk is not addressed; a reserve fund input (CAPEX working capital) provides partial mitigation modelling.

- **Trend / Fad Risk**: Padel is booming now, but so did squash in the 1980s. You're locking in a 10–15 year investment thesis on a sport that may plateau or decline. The key question is whether padel reaches self-sustaining critical mass in your market or stays a novelty. If utilization drops from 65% to 35% in year 5 because the hype fades, your entire model breaks. This is largely unhedgeable.

- **Force Majeure / Pandemic Risk**: COVID shut down indoor sports facilities for months. Insurance may not cover it. Having enough cash reserves or credit facilities to survive 3–6 months of zero revenue is prudent.

### Construction & Development Risks

> **COVERAGE: PARTIAL** — A contingency/overrun percentage is a planner CAPEX input. Delay cost (carrying costs during construction) is not explicitly modelled.

- **Construction Cost Overruns & Delays**: Sports facility builds routinely overrun by 15–30%. Every month of delay is a month of carrying costs (rent, debt service, staff already hired) with zero revenue. Build a contingency buffer of 15–20% of CAPEX minimum and negotiate fixed-price construction contracts where possible.

### Property & Lease Risks

> **COVERAGE: GAP** — No lease-term inputs or landlord risk guidance. The `own` toggle handles the buy scenario. A callout in the BP template about minimum lease length (15+ years, renewal options) would be useful but is low priority.

- **Landlord Risk**: If you're leasing, you're spending €500k+ fitting out someone else's building. What happens if the landlord sells, goes bankrupt, or refuses to renew? You need a long lease (15+ years), with options to renew, and ideally a step-in right or compensation clause for tenant improvements.

### Competitive Risks

> **COVERAGE: PARTIAL** — City articles show existing venue density and Opportunity Score. The planner does not model a "competitor opens nearby" scenario. A simple sensitivity scenario (utilization drop) is the best proxy available in the current model.

- **Cannibalization from New Entrants**: Your success is visible — full courts, long waitlists. This attracts competitors. Someone opens a new hall 10 minutes away, and your utilization drops from 70% to 50%. There's no real moat in padel besides location, community loyalty, and service quality. Model what happens when a competitor opens nearby in year 3.

### Operational Risks

> **COVERAGE: PARTIAL** — Court maintenance OPEX and maintenance reserve are planner inputs. F&B, staffing, and booking platform risks are not addressed. See Tier 2 gaps #5 (booking platform strategy) and #9 (staffing plan). Seasonality is fully modelled (12-month outdoor seasonal curve; monthly cash flow).

- **Key Person Dependency**: If the whole operation depends on one founder-operator or one star coach who brings all the members, that's a fragility. Illness, burnout, or departure can crater the business.

- **Staff Retention & Labor Market**: Good facility managers, coaches, and front-desk staff with a hospitality mindset are hard to find and keep. Turnover is expensive and disruptive. In tight labor markets, wage pressure can erode margins.

- **Court Maintenance & Replacement Cycle**: Padel court surfaces, glass panels, and turf have a lifespan — typically 5–8 years for artificial turf, longer for glass and structure. Budget for a major refurbishment cycle. If you don't maintain court quality, players notice quickly and leave.

- **F&B Complexity**: Food and beverage is an entirely different business with its own regulatory requirements (health inspections, liquor licenses), spoilage, staffing challenges, and thin margins. It can easily become a distraction or loss-maker if not managed well. Consider outsourcing to a third-party operator.

- **Seasonality & Weather**: If you have outdoor courts or your market has strong seasonality, indoor utilization may swing significantly. Model monthly cash flows, not just annual averages — a bad quarter can create a liquidity crunch even if the annual numbers work.

### Financial Risks

> **COVERAGE: PARTIAL** — Energy volatility: energy OPEX is a modelled input with growth rate, but no locking/hedging guidance. Financing environment: debt rate is a planner input; stress-test at +2% is covered by the sensitivity grid indirectly. Personal guarantee and customer concentration: not addressed (out of scope for data-driven product). Inflation pass-through: answered (separate revenue vs OPEX growth rates).

- **Energy Price Volatility**: Indoor padel halls consume significant energy. Energy costs spiking can destroy margins. Consider locking in energy contracts, investing in solar panels, or using LED lighting and efficient HVAC to reduce exposure.

- **Financing Environment**: If interest rates rise between when you plan the project and when you draw down the loan, your debt service costs increase. Lock in rates where possible, or stress-test your model at rates 2% higher than current.

- **Personal Guarantee Exposure**: Banks lending to a single-asset sports facility will almost certainly require personal guarantees from the founders. This means your personal assets (house, savings) are at risk if the business fails.

- **Customer Concentration**: If 30% of your revenue comes from a few corporate clients or one large league, losing that client is painful. Diversify your revenue base.

- **Inflation Pass-Through**: Energy costs, staff wages, and maintenance all inflate. If you can't fully pass these through via price increases, margins erode over time.

### Regulatory & Legal Risks

> **COVERAGE: GAP — Tier 2 priority.** Noise complaints (TA Lärm), injury liability, and permit risks are all unaddressed. A Germany-first regulatory checklist article would cover: Bauantrag, Nutzungsänderung, TA Lärm compliance, GmbH vs UG formation, Gewerbeerlaubnis, §4 Nr. 22 UStG sports VAT, and Gaststättengesetz (liquor license). High value for Phase 1/2 users who are evaluating feasibility.

- **Noise Complaints**: Padel is loud — the ball hitting glass walls generates significant noise. Neighbors can complain and municipal authorities can impose operating hour restrictions or require expensive sound mitigation. Check local noise ordinances thoroughly before committing.

- **Injury Liability**: Padel involves glass walls, fast-moving balls, and quick lateral movement. Player injuries happen. Proper insurance, waiver systems, and court maintenance protocols are essential.

### Technology & Platform Risks

> **COVERAGE: GAP — Tier 2 priority.** Booking platform dependency is a real decision point for operators (Playtomic commission ~15–20%, data ownership implications, competitor steering risk). We scrape Playtomic and know it intimately. A standalone article "Playtomic vs Matchi vs eigenes System" or a section in the BP template would address this. The booking system commission rate is already a planner input — we could link to a decision guide from there.

- **Booking Platform Dependency**: If you rely on a third-party booking platform like Playtomic, you're giving them access to your customer relationships and paying commission. They could raise fees, change terms, or steer demand to competitors.

### Reputational Risks

> **COVERAGE: GAP** — Not addressed. Out of scope for a data-driven product; operational advice.

- **Brand / Reputation Risk**: One viral negative review, a hygiene issue, a safety incident, or a social media complaint can disproportionately hurt a local leisure business.

### Currency & External Risks

> **COVERAGE: GAP** — FX risk from Spanish/Italian manufacturers is not modelled. Minor; most German buyers pay in EUR. Note in BP template as a caveat if importing outside Eurozone.

- **Currency Risk**: Relevant if importing courts or equipment from another currency zone — padel court manufacturers are often Spanish or Italian, so FX moves can affect CAPEX if you're outside the Eurozone.

### Opportunity Cost

> **COVERAGE: PARTIAL** — IRR and NPV implicitly address opportunity cost (you enter the hurdle rate as WACC/cost of equity). No explicit comparison against passive investment alternatives is shown. Sufficient for current product.

The capital, time, and energy you put into this project could go elsewhere. If you could earn 8–10% passively in diversified investments, a padel hall needs to deliver meaningfully more on a risk-adjusted basis to justify the concentration, illiquidity, and personal time commitment.
