As padel’s momentum continues to accelerate, courts are being delivered in a wide range of settings, from purpose-built facilities to repurposed warehouses and shared-use community sites.
In this article, Lincoln Nelson (pictured below right), a Commercial Property Solicitor, and Richard Meehan (below left), a Commercial Law Partner at Myerson Solicitors, draw on their experience advising on sports, leisure and commercial developments to explain the legal and property issues that operators should consider at an early stage.
While the commercial opportunity is clear, setting up a padel venue involves several legal and property issues that should be addressed from the outset. Overlooking these can result in delays, unexpected costs or restrictions on how the venue can operate once it opens.
This guide outlines the key legal considerations to bear in mind when planning and delivering a padel court in the UK.
Planning permission and change of use
One of the first issues to address when developing a padel court is whether the correct planning permission is in place.
Installing a padel court will usually involve creating permanent fixtures, including the playing surface, glass walls, fencing, canopies and floodlighting. These elements will generally require planning permission.
Planning consent may also be needed where the proposed use of the site represents a material change of use. As a general position:
⦁ Outdoor padel courts fall within Class F2(c)
⦁ Indoor padel courts fall within Class E(d)
Where an existing commercial property already benefits from planning consent within Class E, it may be possible to repurpose the space for indoor padel without a formal change of use. However, this will depend on the specific planning history and the nature of the proposed works.
Given the potential for objections relating to noise, lighting or increased footfall, engaging a planning adviser at an early stage can help identify risks and ensure that the necessary permissions are secured before significant costs are incurred.
Title due diligence and property constraints
Whether developing a new site or converting an existing building, thorough title investigations are essential.
Land may be subject to restrictive covenants that limit noisy activities or prohibit any use that causes disturbance to neighbouring owners or occupiers. These restrictions can be particularly problematic for outdoor padel courts and, in some cases, may make a site unsuitable for padel use altogether.
Where the property is leasehold, additional checks are required. If the party granting the lease is itself a tenant, the headlease must be reviewed to confirm that it permits both underletting and the structural alterations required to install the courts. In many cases, consent from a superior landlord will be required. Where a headlease contains a total prohibition on underletting or alterations, a formal variation may be needed. This process can take time, so if the property is leasehold it is important to identify these issues at the outset to avoid delays later in the project.
Leasing a padel venue
An agreement for lease is often a useful tool for the development of padel court facilities. It allows a developer or operator to secure a site while ensuring they are not committed to taking a lease unless certain conditions are met.
These conditions commonly include obtaining satisfactory planning permission, securing funding and receiving any necessary third-party consents, such as approval from a superior landlord.
Leases for padel facilities require careful drafting to reflect how the venue will operate in practice. Key issues to consider include rent structure, permitted use, alienation rights and reinstatement obligations.
Rent may be fixed or linked to turnover. A turnover-based rent can be particularly attractive for new venues, allowing rent to reflect performance while the business establishes itself.
Many padel venues operate as hybrid spaces, combining sport with cafés, bars or retail areas selling equipment and clothing. The permitted use clause should therefore be drafted broadly enough to allow these activities, rather than being limited to sporting use alone.
Alienation provisions also require careful consideration. Operators may wish to grant underleases or concession arrangements to third parties operating cafés or retail spaces, and the lease should allow for this where required.
Where facilities such as access routes, car parking, changing rooms or clubhouses are shared with other occupiers, the lease must grant adequate rights to ensure the venue can operate effectively.
Given the significant investment involved in installing courts and associated infrastructure, tenants should also ensure that these items are treated as tenant’s fixtures and that there is a clear right to remove them at the end of the lease term.
When a licence may be more appropriate than a lease
In some situations, occupying land under a traditional lease may not be viable.
This is increasingly relevant where padel courts are installed on school sites. School land is often owned by local authorities rather than the school itself and granting a lease may require additional consents that are difficult to obtain.
In these cases, a licence or concession agreement may offer a more practical solution. A licence allows the operator to occupy and use the land for padel purposes without acquiring a legal interest in the land. This can avoid the need for certain approvals, including, in many cases, consent from the Secretary of State for Education.
Such arrangements are subject to negotiation with the relevant authority but can provide flexibility for both the operator and the landowner.
Installing the courts and fit-out works
Consent for fit-out works should be obtained from the landlord (and any superior landlord) at the same time as the lease is granted. Dealing with this upfront helps avoid delays in commencing works and opening the venue.
Landlord consent is typically documented through a licence to alter, which records approval for the works and sets out the tenant’s obligations, including reinstatement at the end of the lease.
As padel courts will not generate income during the installation phase, tenants may also wish to negotiate a rent-free period to reflect the time required to complete the fit-out works.
Booking systems and data protection
Online booking systems are central to the operation of most padel venues.
Using an established platform can improve visibility and customer experience, but access is usually governed by a software or platform agreement. These agreements should be reviewed carefully to ensure they are commercially appropriate and provide sufficient protections for the operator.
Venues must also comply with data protection laws. Personal data will be processed through booking systems, and many sites will operate CCTV for security purposes. Clear privacy notices, transparent processing information and properly identified lawful bases for data use are essential to meeting regulatory requirements.
Coaching arrangements
Offering coaching can help padel venues attract and retain players while generating additional income.
As many coaches operate on a self-employed basis, it is important for venue operators to put clear contractual arrangements in place. Coaching agreements should set out the commercial terms of the relationship, define responsibilities and address how facilities can be used. These agreements often require negotiation to reflect the practical realities of the venue.
Quick checklist: setting up a padel court in the UK
Before moving ahead with a padel project, operators and developers should make sure they have:
⦁ Confirmed whether planning permission is required for the courts and any associated structures
⦁ Identified the correct planning use class and checked whether the proposal involves a material change of use
⦁ Reviewed the title documents for restrictive covenants or other title matters that limit how the land can be used
⦁ Established whether any headlease restrictions apply and if superior landlord consent is needed
⦁ Considered an agreement for lease to secure the site while key conditions, such as planning, are satisfied
⦁ Ensured the lease allows for mixed use, including cafés, bars or retail space where relevant
⦁ Reviewed alienation provisions to allow concession operators or third-party occupiers if required
⦁ Confirmed that courts and infrastructure are treated as tenant’s fixtures, with clear removal rights
⦁ Put the right documentation in place for fit-out works, including a licence to alter and any rent-free period
⦁ Addressed day-to-day operational issues, including booking platforms, data protection compliance and coaching arrangements
Key takeaway
Installing a padel court is not just a construction project. Early attention to planning, property rights and contractual arrangements can help avoid delays, reduce risk and ensure the venue can operate as intended once play begins.
This article is for general information only and does not constitute legal advice.
Main pic: Game4Padel
