A padel company backed by cricket legend Joe Root MBE has secured funding of £1.2m to open a second site.
Play Padel has secured the funding from NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II), and the South Yorkshire Debt Fund, which is managed by FW Capital on behalf of South Yorkshire Pensions Authority.
The company, which opened Sheffield’s first indoor padel courts last year at Abbeydale Tennis Club, has secured a site adjacent to Meadowhall Shopping Centre for its next venue. The loan will help to fund the fit-out and provide additional working capital.
The new club will have eight indoor courts, twice as many as the current site, and is expected to create around 12 jobs when it opens in October. The company is also looking at other sites across the North for expansion in future years.
Play Padel was founded by five childhood friends who all live locally and are keen padel players – entrepreneurs Alex Fleming, Chris Milland and Harry Bliss along with Cameron Dawson, the former Rotherham United goalkeeper, and Joe Root, the former England cricket captain and second highest run scorer of all time.
Since they launched the Abbeydale club, the four courts have been almost fully booked and have attracted players including Olympic champion Jessica Ennis Hill, who also lives locally and is a regular padel player. The site also includes an equipment shop while its café bar has become a popular for corporate networking events.
Alex Fleming, CEO and co-founder, said: “Padel is a great way to stay active and socialise and our club caters for all people, all ages and abilities. We want everyone to feel comfortable, even those who haven’t played sports since PE at school. People mix in, play together and stay on for a drink afterwards – there is a real community feel. We can’t wait to open the Meadowhall club and start a new community in North Sheffield.”
Paul Wainwright, Fund Manager at FW Capital said: “This is an exciting time for the team at Play Padel as they expand their presence at a prime location near Meadowhall. Padel is experiencing a real boom in the UK right now. In order to sustain that momentum, the sport needs infrastructure that matches the enthusiasm of its players. The funding we have provided is doing just that, positioning Play Padel as a key player in the market and investing in the health of our local community."
Ian Whitworth of Mercia Business Loans added: ““Padel has become the fastest growing sport because it is simple, sociable and fun. Play Padel’s first site at Abbeydale has quickly taken off. This funding package, which brings together two Yorkshire debt funds, will enable it to start expanding to other sites and create a welcome new facility in the Meadowhall area which is currently underserved in terms of sports provision.”
Jemima Jones, Investment Manager at the British Business Bank, said: “We’re proud to be backing community-focused businesses through the Northern Powerhouse Investment Fund II, ensuring they have the capital needed to both grow and bring people together. This is helping Play Padel to create new jobs and opportunities across the Northern economy, supporting regional economic growth while gaining the backing of some impressive sports stars.”
The South Yorkshire Debt Fund is managed by FW Capital, one of the UK’s largest regional fund managers with a strong record of supporting businesses in Yorkshire. The new fund is designed to support growing businesses across Barnsley, Sheffield, Doncaster and Rotherham with loans of up to £2million. Funding can be used for a variety of purposes, such as boosting working capital, purchasing equipment, recruitment, marketing and product development. It was launched by South Yorkshire Pensions Authority to support small to medium sized enterprises (SMEs) across the region after identifying funding gaps that are hindering growth.
Andrew Stone, Assistant Director – Investment Strategy at South Yorkshire Pensions Authority, said: “It’s great to see our investment helping local businesses like Play Padel grow whilst generating the returns we need to pay our pensioners. We look forward to following the company’s future developments and trying out the courts (if they’re not all booked up).”
Independent corporate finance advisory firm Castle Square Corporate Finance provided debt advisory services to Play Padel, supporting the shareholders throughout the dual-funding process.
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
