How Much Money Does An Indoor Sports Facility Make? A Realistic Breakdown
If you’re thinking about opening a sports facility, one of your first questions is probably: How much money does an indoor sports facility make? The answer depends on your business model, location, and how you use your space. Some facilities will bring in half a million dollars a year, while others may struggle to cover their rent. In this post, we break down real-world revenue ranges and what separates the most profitable facilities from the rest.
Real-World Revenue Ranges
Your facility’s financial success depends on your mindset and your management model. Are you running it like a business, or is it more of a hobby? Both types lead to very different outcomes financially. Here’s a look at what indoor sports facilities can realistically make in annual revenue, not profit, based on your management model.
Rental / Membership Model
Facilities that focus primarily on rentals and memberships typically bring in between $90,000 to $200,000 per year in revenue. Many owners choose this model as a way to give back to the community or make passive income from a previously empty space. These models are often built around access control systems, with hourly rentals or monthly rental memberships. Generally, these facilities are simple to manage and require little staffing. However, they also come with lower revenue, even when the space is booked consistently.
Training / League Model
Facilities that offer more structured programming – such as private lessons, small group training, leagues, and memberships/packages – can earn significantly more than the rental mode. The training/league model can typically generate between $250,000 to $500,000. Although this model requires more staffing, the margins are usually higher for your facility.
Team Model
Team-based facilities often reach $500,000 to $600,000 in revenue. These facilities are dedicated to team organizations that use the space for practices and training sessions. With a built-in audience, the facility has a consistent demand for services and therefore can become highly profitable. However, it also comes with more complex scheduling needs and higher operating costs.
The Rent Trap: Why Location Can Make or Break You
One of the biggest expenses and risks is your facility’s location. We worked with a client who ran a successful team-based organization. They eventually decided to build their own indoor facility. The rent alone ended up being $21,000/month, and that didn’t include their utilities, insurance, or taxes. Even though the facility had a strong program with steady team participation, that kind of cost made it impossible to stay profitable. They came close to bankruptcy because of their rent. No matter how good your business model is, an expensive lease or mortgage can break it. Always run the numbers and make sure your rent fits with your revenue potential.
How Much Money Does An Indoor Sports Facility Make? Final Thoughts
So, how much money does an indoor sports facility make? The answer varies widely, from under $100,000 to over $500,000, depending on how the business is structured. The most profitable facilities tend to focus on training, especially group training. They also make efficient use of their space with varied programming. A well-run indoor sports facility can generate steady revenue, support the community, and create a sustainable business for the long term.
Need help planning or scaling your indoor sports facility? We can help you build a more sustainable business model, based on real-world data and hands-on experience. Contact us to get started.
