There was a ton of money that changed hands just before the Major League Pickleball trade deadline this year.

The New Jersey 5s spent a rumored $400,000 to acquire Federico Staksrud and Milan Rane from the Orlando Squeeze, while the Los Angeles Mad Drops spent $125,000 to get Connor Garnett (me) from the Utah Black Diamonds.

Cash considerations were a piece of the puzzle in several other deals as well, although in many cases we don’t know the specific amount (that part is not released publicly in most cases). And before the season, the St. Louis Shock paid $1.2 million for the right to the first-overall pick in the free-agency draft, then selected Anna Bright for the record amount.

So, what is all this money going toward, and what is the long-term investment strategy for the teams who are spending that cash?

The Kitchen Pickleball Discounts.

The business of owning a Major League Pickleball franchise

SELLING SPONSORSHIPS

The teams that are spending the most money in the league are generally looking to drive sponsorship revenue from that investment. That can mean logos on uniforms, shoe deals, social media promotion, etc.

If you have some of the bigger names in the sport on your team — like Ben Johns, Anna Leigh Waters, Anna Bright and Federico Staksrud — you can command more money for those sponsorships. And you’re also more likely to be playing in the most important matches, which will increase that reach for your sponsors even further.

BUILDING A LEGACY

In every sport, there are a handful of legacy franchises — think Dallas Cowboys, Pittsburgh Steelers, Green Bay Packers, Los Angeles Lakers, Boston Celtics, New York Yankees, Los Angeles Dodgers, etc. Those franchises have the most fans, which means they sell a ton of merchandise, tickets and are generally promoted more in media and by their respective leagues. They also command a higher valuation if they were to sell, and can bring in more sponsorship dollars as a winning team.

Right now there are several Major League Pickleball teams trying to become pickleball’s version of the Dallas Cowboys as the league matures. Winning now can have a big impact on how your franchise is viewed years down the road.

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The three types of Major League Pickleball teams

A lot of teams are taking different approaches when it comes to positioning their franchises right now.

You have the teams spending a ton of money to get top-tier talent right now to build that legacy.

There are also others looking to find “undervalued players” that can help them become good, middle-of-the-road contenders without breaking the bank.

Then you have certain teams that are just in the league and waiting to see how things progress. As the value of the league as a whole increases, so too does the value of their franchise, whether they’re winning right now or not.

All three are fascinating approaches, and it will probably be several years before we know which approach was the right one.

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