Are you looking for an investor or VC to create a successful Padel club? Join me, Julian and Magnus, and we'll show you how. Welcome Magnus. Thank you for coming on the show. Uh, why don't you tell us a little bit about how you got into Padel? Thank you for having me.
Um, so I um got involved in Padel just recently actually about a year and a half ago through my co founder and agent lombus who Got some interesting contacts in New Mexico that were looking to create a whole new concept Um in Padel as everyone knows Padel was is the the home of Padel is in Mexico So it seemed quite fitting for us to uh to get involved there.
So um, we um had a meeting and found that there was some very nice, um synergy between our Uh, to companies and, uh, decided to go forward with the project myself. I've played Padel badly for, uh, for a period of time. I'm more of a. I'm more of a tennis guy originally. So, um, uh, the, the crossover has been frustrating for the first couple of months, so I'm starting to learn the tactic a little bit better now. So it's, uh, it's, it's work in progress. Let's just leave it at that.
So now in your company, what other sports did you work with prior to, to, to battle? So originally, um, I'm, my background is from, uh, football, soccer in America and, uh, Olympic handball. And my, my, um, co founder is also a. Current handball professional.
And just recently, you know, we've, um, um, Patrick has joined us, uh, who is, uh, uh, quite a prominent, um, handball, um, executive from a professional handball as well, so he's led clubs and, and, uh, done quite a lot in Padel as well on the various tours. So, um, we're, we're an eclectic bunch. Great, great. So why don't you talk to us a little bit about your company and what you, what services you guys provide. So we're as a 9 1 o'clock is pretty new.
We've, we've focused on sports and investment in sports. And, um, for the last two or three years, we've been working on, we're helping players find new clubs, especially in handball and, uh, venture done over into football as well, but now in the recent years, our main, primary, primary focus is going into Padel, um, Padelrs is as exploded as you guys know. perfectly well across the world and it's, uh, it's not very often you get the chance to participate in growing a sport.
Um, I think it's pretty much a once in a lifetime opportunity and especially such a great sport with so many, um, aspects to it. So it just felt like a very natural transition for us to get involved and the opportunities are there. Both from a business perspective, but also from a sporting and community As perspective as well. We think that community is the vital Component for the success of Padel. So, uh, we want to bring that community feeling to every Arena that we we set up.
Um, but not to forget it's a business as well. So it's it's a tricky. Uh, It's a tricky combination The balance, right? So can you elaborate on that when it comes to community and what are your tactics or models, you know, when you're consulting or putting together a club? So for us, it's very, very important that we have a economic sustainability model, but also an environmental and sports model. Um, model.
So while that we mean that, uh, for a arena and for a sport to succeed, you need participation from the community. If the community are involved, they will help drive the sport forward. Grassroots is where it is at. Professional sports is, is, is fantastic. It's a great sticker, but if you don't have the grassroots, the sports will fail pretty quickly. So, um, coming from living in Sweden, we we've seen. The, the, the quote unquote rise and fall of, of Padel.
Padel, what we have, um, seen is that the amount of players has been quite, um, increasing quite significantly, even though the amount of arenas have decreased. So what we've done is we've taken a lot of, uh, knowledge from that, transferred that over into our, uh, And the focus there is that it's gone from local to corporate back to local. So we want to focus on the local, incorporate the business side of it and create a model that is sustainable outside of sports as well.
So our model involves restaurants, it involves, uh, physiotherapy, coaching, bars, um, and, and these, The leasing of these venues then generates income to the, to the venue. So then we're not completely dependent on bringing money and bookings for the, for the arena. And then the final piece of assistance is my, my co founder who's French would say. Is that we're also installing spots as well. So that's the, the money generated from that also comes back into the business.
Let's talk a little bit more about that. Those verticals. Right? Um, so how many verticals are there? And and how many of them will. In a pie will produce money and what are what? Which other ones are investment in time?
Let's just say to bring the community together Well, so for us the the the restaurant and the container area are the two main community ones for us they're going to be open completely open to the public and and anyone from uh, From outside can come in watch a game while they eat or drink and then Hopefully begin to play puddle as well because that's right. So that's really important because the restaurant industry is a difficult industry, right? Managing that is a whole nother business. Right?
So your best route based on your experience is just sub leasing that out and having a professional to correct. Correct. And I think if you do it yourself and you have a background in restaurant airing, that's fantastic. If you don't, I think the safest model is just to lease it out and then set the ground rules for that. And the same applies for the containers as well. If you're going to do that, rent out, excuse me, how about beers and wine? How about beers and wine and spirits?
Is that something you leave to the restaurant or is that something you. You hold on to them, because I know the profit margins are pretty high. And do you usually do that? Because mixing, you know, that with sports sometimes is not the best thing. Agreed, agreed. And I think that's a bit of a balancing act to be had.
And I think that's pretty much down to each individual, um, Arena to decide which ones they want to go for um in in the one that we're building in MetaPack Mexico at the moment we will have a bar area in addition to the restaurant which will be run by the arena and not leased out. There is going to be restrictions in what's available there. But we also are very keen to be able to bring in outside people to participate as well. So it's, it is a balancing act and it is a complex place.
You VC investor, angel investor, um, obviously you're not seeing money, right? Um, at what point, you know, you want to look at, at companies already come proven to what they can do or the potential that they can do, like how far off does. A, a business, uh, need to be for you guys to invest into. So, um, I'll give you the example of the Mexico project that we have there.
They, they came with a concept and, uh, we facilitated the finance there, and then we developed a concept further on from that as a consulting partner. So, um, we found a angel investor who was very interested in going into the Miami district actually, but, um, to, to be part of the Miami expansion, you would have to then invest in. Uh, facilities. So that's in this instance, there's a, there's an angel, um, investor from that.
We are pretty open in, in talking to both venture capitalists and, um, angel investors going forward in our other sites. So in, we're looking both in, in America and the UK as our primary to, um, expansion areas. Obviously the U S, um, land becomes a huge issue and, and finding an investor Land already is is ideal for us either through that we can lease it from them.
We can purchase Or they can use the land as they see fit and then we can build But the added advantage of our concept is we can also retrofit buildings so if you have a Um, an old building that you can just be renovated our, um, architect from, uh, from Barcelona. He is very on board in, in, in retrofitting a whole, um, factory, for example, an old factory, which can be repurposed.
Um, so again, the, Let's just say you have a partner in a business and they have an idea and have a good business plan. How far did they have to get before you guys consider them? Uh, consider some best and then do they have to have a piece of property 1st? Um, you know, how far do they have to get or is it pretty much the idea of the business plan and you're buying into the people? We buy into the people. I think that's the best way to do it because property can be purchased. It can be leased.
Uh, that's becomes a secondary problem. However, if, if a person isn't dedicated and driven enough to, to run that business, we're not interested in cooperating with these people because it'll end up to be a failure, unfortunately, or less successful at least. So for us, it's the person number one. And then after the initial conversation that we have with the potential business owner or investor, then we move forward a stage where we say, okay, where are you thinking of expanding to?
So it could be anywhere in the world. We've got contacts and, and, uh, ability to, to, to go anywhere in the world. And then we find out, okay, do we work well together? If that happens to be a yes, then we move forward and then we start the planning phase of how a center wants to be looked at. So is it shared the responsibility of acquiring a piece of land or is it based mostly on the that small business? It's a it it really does depend on the location.
Um us as a company We we're more than willing to invest in in the project ourselves as well If it seems to if it's a project that we are passionate about and the location really makes sense. Otherwise we can find, um, investors to invest in the land and purchase that and have a loan agreement based on that. And then you can expand, uh, using that facility. I got, I got a tough question for you, Magnus.
So what, what are the terms, what, what are the basic terms in, in this Padel thing, going in from business, getting investors or VC or angel, what are the typical terms here? So I can only speak, uh, very broadly, obviously. Um, so with the two models that we have, the loan and the investment model. So we typically find businesses and match them with investors that we have. Um, then we negotiate a loan, um, percentage.
So an interest rates that that goes through and the, and the time of period that that is going to be run on, which is what we are currently doing in Mexico. Our other version is that we. Um, either as a business investor in the project or the project is invested, uh, through several different investors so that that can be, uh, expanded upon and then it becomes an equity model where we early on decide who is the primary driver of this business. And then we execute accordingly.
So if somebody is good at, um, the property part of it, obviously that has a huge impact on, on the project. Okay. So determining on what, what their value is or what they're putting into the business is going to determine the equity split or the way you're saying, yeah, it's a, it's a Scandinavian company. I mean, we're very transparent and very honest about how we want to do things. So we try to keep it transparent. Right. And how do you determine if you're going with a loan?
Uh, you know, a model or an investment model, location, location, location, I guess, I suppose is the, is the main thing. I mean, if we're going to build in, in downtown London or downtown Tokyo, but obviously a property prices becomes, uh, an, an interesting concept. Um, but, um, it really does just depends on the, uh, the location, really. And the equity part, it's, it's variable too, or you always have a set equity that you want to go into. Thank you. It's always based on project by project.
We don't want to exclude anyone. So if somebody wants to have a hundred percent equity on that, we'll obviously facilitate that and take a consulting role. Um, but in, in most cases we will end up with a 10 percent equity stake in the company just to make sure that we're part of the project going forward, mainly because we've got the experience from Europe, um, to drive this kind of business, both from a sporting aspect, but also from a business aspect as well.
So, and how do you adapt, um, you know, one thing is to do business in Sweden or Spain or France. And then when you jump into this side of the, you know, the world, it's, it's a complete different thing, you know, Mexico and the United States. So, how do you learn that locally that the permits and the whole process, how it goes, you know, Miami with the hurricanes, Mexico with the earthquakes, um, or the different, you know, loss and permits, how, how do you deal with that? Um, we cry a lot.
Um, we not sleepless night nights. ? No. We, we, we, as, as a company, we've done business pretty much across the world, across the globe. So we have an idea of the cultural differences between say, America and, and Mexico or even the West Coast and East coast, uh, of America. There are differences there as well. So I think for us it's, it's important just to understand that. Okay. As foreigners, we're going into a new market in terms of Mexico. We've learned so much.
I mean, probably Mexico as a market is completely different to most other markets across the globe in, on an investment point of view. So I think from, from that point of view, if we were able to do well in Mexico, then we can do well pretty much anywhere I firmly believe. But the fact that we are Scandinavian and you've seen lots of projects across the world that have been driven by, by Swedes, especially, um, the, the business. Model fits very nicely to the culture as well.
So as, as the people were very open, we're very straightforward and we're very direct in the way we approach business. And I think that is pretty much transferable to any culture. That's fantastic. So let's, now let's go back to the projects where, how many current projects you have, how many projects that you have done already, give us a little bit of feedback to our listeners and viewers. Sure. So Mexico is our first one. So that's our proof of concept.
Um, we're in discussions at the moment for three locations in the U S and two in the UK and one in Australia. We've got a, quite a firm option in the mid, uh, in the middle of the States, but that that's going to be coming in at the end of next year probably. But, um, our focus at the moment is the U S and the UK. Okay. And the U S are you East coast? You know, West Coast where the projects come in. So 2 of them are on the, um, in the California district and 1, sorry, there's 4.
So there's 1 in Miami, 1 in Texas and 2 in California. We're in Miami. We haven't decided. We're looking for some, we're looking for a sugar daddy with a bit of land. We'll have to have a 2nd, uh, you know, interview there and talk about that. That's exciting. No, I think it's great. Uh, uh, the West coast really need some, some more Padel. Uh, and there's so many projects. So how is this sweet experience right now? You know, you guys reach that peak you bottom down now where you guys that.
And then compared to the United States, where do you see it? So I think, um, obviously Sweden is very much more mature than, uh, than most mosques, Spain and Sweden are probably the most advanced markets, uh, in the world at the moment. So at the moment in Sweden, there's about 450, 000 huddle players, which is the same as golf. Um, so I think, yeah, and, and it's, it's quite an impressive number as well.
So, but the, what we've, the interesting part is that we've seen the amount of clubs go down. So the concentration of clubs has gone down and they become better clubs that become better, uh, run clubs. So what happened at the beginning, everyone had a puddle called everyone, especially during COVID. And that was one of the oddly strange, uh, one of the biggest, um, explosion sports in Sweden. Obviously, you know, that we didn't have a full lockdown like the rest of the world.
We, we, we did things a little bit differently. Um, but the sport just exploded. So everyone had a court. What happened then was that a big corporation came in, bought them and they weren't, uh, there was no sense of community. There was no sense of pride in the clubs. So what ended up happening there that they got given back to the original owners and are now driven very successfully because they have that passion. They have that connection to the community and that connection is priceless.
And I think a lot of the time it gets ignored or. Um, it doesn't get taken seriously, which is what we want to avoid with our, uh, arenas. So what are your tactics to do that? I mean, it's easier said than done, right? So do you get into politically? Do you talk with businesses, corporations? Why don't you talk to reviewers, uh, how they can, they can start doing that. So the foundation is all about money.
Unfortunately, any sport is, is, uh, driven by the economic benefits, but the health benefits as well. So a healthy, um, a healthy people and the better it is for, for, for local government. So what we've started to do now is we've started to have conversations with local government to see if we can play into their, um, agendas. locally.
We talk to local community leaders, we talk to local businesses to find out, engage with them to see, so how can they get involved in the sport in terms of advertising, in terms of events at the venue, and what's missing in the local community, is there a specific kind of school that is, that needs help getting more interested? Kids more into sports, uh, the elderly, the disabled.
So we'd like to talk to as many people as we possibly can to form that specific venue, according to the local community, then with the containers and the restaurant, we don't want chains. We don't want these big McDonald's. We don't want to have any, um, uh, big, two big corporations for this because we. It is a community based sport. So we want local artists, we want local, um, companies to have the the coffee shop there.
We want, um, whoever is in the local community and has the ability to to run a shop there, help them get in, get into it. Uh, so maybe even after school programs. Okay. And that exactly. So we're working quite a lot with a few charities in Mexico as well. And we're going to be giving away quite a few, um, scholarships to local talents and, and through bull puddle and a few other, and Novato is also pitching in here as well.
Definitely a focus on, on giving young talent the chance to actually do well. Okay. So let's talk to a future, you know, Padel club owners or inspiring ones. What, what boxes do, do they need to have to check check mark off for you guys to be like, Hey, this is a good candidate to invest in. So first passion, you have to have a passion, um, and you have to have the drive and willingness to put in the long hours. It's been, it's been at times painful, um, to, to do the Mexican thing.
It's been frustrating. Uh, there have been tears. There's been quite a lot of drama. Um, but um, If you don't have that drive, you're not going to succeed So what we'll do as as a as a consultancy, we'll we'll sit with with the potential Owners or investors and understand so from an investor point of view. This is what's required and from a An owner point of view, this is what is required. And then we try and match the people that work together that well.
So if somebody's really experienced in business, but no sports, we try to pair them with somebody who has a background in sports and vice versa, obviously, because, uh, it, it'll only benefit whoever is running the, the place to have the opposite counterpart running it. And then we also obviously pitch in with the marketing. We pitch in with, um, anything that we can do as a company. To make them succeed.
And this is why we try and retain a 10 percent ownership in that because it gives us the motivation to also do that. And we don't want to take away the money from the, the venue and the owner either, because that money can go back into community programs. So we'll go, we'll sit with the community, help them build community programs, outreach programs, um, training programs, school programs, whatever's required. But we mustn't forget this is. It's a money game. They have to make a profit.
So in terms of Sorry, go ahead. No, not finish. I'm sorry. So in terms of an angel investor, for example, our investor There is a return on investment within three to five years and that is with very very realistic booking numbers at about 40 to 50 Uh, sorry 30 to 40 Looking and the rest of the money comes from all of the other streams in business like sponsorship rentals restaurants Everything so, um, you said 10 percent agrees that to the agency. I'm assuming. No, that's their company.
Yes. Okay. So what, what services do you provide for that 10 percent equity? So we'll, we'll, um, put, um, obviously we'll help them with negotiations with sponsors. We'll help them negotiation with finding, um, what kind of courts they want. So we were in initial conversations with quite a few of the major court manufacturers to, to be, to choose one that will go into all of our centers that will then obviously, um, equate into a cheaper courts. Uh, and lower prices.
So the investment becomes lower. We try and keep, um, sponsors on boards that are big enough. So if we had a, um, Coca Cola, for example, we would approach them and say, listen, we've got centers in America, Mexico, UK, we would like for you to sponsor all of these venues and we will, then we would distribute that sponsorship money to all the centers. And then obviously have an agreement in place so that they can generate extra revenue from that. So we're basically facilitating them.
We'll, we'll help them with coaching. We'll help them finding professionals. We'll do anything that's required effectively to make them a success. So compare the, the, tell us how far you're in advance with the Mexican. Is the Mexican club already operational? We're in the final stages of, uh, Lawyers are involved. Let's just put it that way. So are you guys in Mexico City or where are you? Where are you looking? Metapec. So about an hour outside. Toluca is the closest city.
And how many courts do you have there? We will have nine standard, standard courts and two championship courts with an arena so that people can watch the tournaments, et cetera. Indoors or outdoors? Uh, that is optional. So at the moment we'll, we're going to have a form of roof, but it's not really closed because of obviously the, the temperatures in Mexico are very beneficial compared to, you have to have a roof in Sweden. Otherwise.
It's not an option, but in Mexico, you have the option of not doing that. And that's the benefit of our model as well. And you can choose without Ruth, you can choose with Ruth. You can basically mix and match according to the requirements of the local venue. And then here in the United States, are you trying to do something similar? We are, we want to take the concept and move it to, to, to the United States.
Uh, and ideally we would, uh, then look to, to go for areas that are not fully developed yet. Um, California, as you said, there, there is a lot of things going on there, but there's nothing community based in the same way we are doing. And I also think actually Miami is, is a fantastic location for that ability in a community. There is such a passion for the sport there, but, and again, most of the venues there are prime. Um, pricing wise and also, uh, it's a very high end establishment.
We're looking for the mid markets to to to really capture the imagination. Now, um, in your model, is there an exit plan at certain point or not? No, we have no plans of exiting. Um, so. I'm not naive enough to think that somebody's not gonna try and buy us, uh, at some point if there is a success and we'll cross that, uh, bridge when we get to it, but we have no plans of, of, uh, a jumping ship. This is, this is our passion. This is what we love to do. We love sports and we love puddle.
So for us, it's, it's, we're in the long haul. I'm not necessarily in your agency, but I mean in the clubs that you're putting together. So that, again, I think that depends. I mean, if, for any club that we have an ownership on, we would prefer that the same owner sticks with it for a while. However, considering they have a 90 percent stake in it, then we will support a sale should that happen down the line. That's it. That's interesting. So let me ask one thing.
Uh, you're originally from Sweden, correct? I'm actually half English, half Norwegian, and I temporarily live in Sweden. So you live in Sweden? I do, yes. So let me ask you something very interesting that happened. Um, Sweden was not, not even closing the map in the world championships of battle. You know, the seniors, they opened on the, the juniors. The, you guys ended up, Third or the Swedes ended up third on the last junior world cup. Do you think what what do you think happened there?
From being nowhere in the top 20 to ended up, you know, the on the best top three on in the world We're trying to make friends here, man. Not enemies. Come on. Yeah So my norwegian part wants to uh, really say something bad about sweden, but my english part is stopping me. So No, I'm going back to what you were saying that. Uh You You know, you guys have the peak on the bottoms and then the clubs that survive focus really in community and programming and things like that.
And I believe that 1 of the things that the suites really focus on is in junior development. And that was the result of, you know, that junior development the last, you know, 4 or 5 years that you guys created a top notch junior teams. That that's my belief. No, I would have to agree with you there. I think the grassroots as we've spoken about is the key to success in any sport. So if you have a strong grassroots movement, then you will see progress down the line.
I think what happened in Sweden was that because there were so many Padel arenas. Um, it wasn't developing in the way that they wanted to. And it was primarily focused on the money side of it. When COVID ended and the sport really, uh, took its, um, um, place in, in the market. I think that's when you started to see the youth really getting involved in this. Um, and because it's, it's a smaller court, it's more explosive. It's more, um, It's more complex.
I think that pretty much, um, sold it to the Swedes, um, from that perspective. You talked a little bit about business, uh, and, and sports. How do you relate both of them together and how do you create a balance? So Deloitte came out with a, uh, uh, a survey and they found that the Padel market by 2028 is going to be worth approximately 4. 3 billion US dollars. While the meetings and facilities industry. Is valued at 1. 2 trillion by that same year.
So for us, it seemed like a very logical, um, connection to put the two together because what we've seen from the explosion in golf is that golf and business go hand in hand. We want to steal from golf effectively. We want to recreate that model and, and make it a business friendly, but also a competitive environment so that, um, it can, it can, it can flourish in both the corporate world, but also in the professional world. Wow. That's genius.
Yeah. I mean, focus on something that already works, you know? Yeah. Going back to the business world, I live that every day that, uh, uh, at our club ultra where People are telling me that, you know, they come to the club, not only just to play Padel, but they have nice local rooms where they can shower and then they can spend time a couple hours. They're doing some work, you know, you know, sitting on the tables and having a cup of coffee and all that and creating that community.
It goes with your. Your vision as, as you know, as an investor, I mean, I think that's the key creating the whole 360 synergy. It's crucial for the success of the club. Is that also part of your model, creating like a business, um, location where people could do their work and stay there, do their work and play Padel and so forth, or even rent spaces out. Um, is that also an option or something you guys focus on? So we have a business center. Um, that will be available to members as well.
Uh, we're, we're debating a little bit, depending on location, whether it won't, we could at least that out to it, kind of a, we work version, um, just, uh, uh, a successful one and, or that, that we're good to rent it out by the hour, either way, members of the club and even non members, cause we don't want. We don't want to lock it to members. We want the community, everyone to get involved in, in the sport.
So if you, if you start off in the business center and you watch it, you might get involved or vice versa. You'll see that when you're playing, you'll see people going into a meeting room. You'll inquire about that and you can say, okay, well, I can do a little bit of business here either before or after I've played a game. And then you can enjoy the bar and then you keep them.
On the venue and and that's I think is how you how you develop that community and how you get people involved in the sport As well. It doesn't have to be sports only it could be business And then we see intra entrepreneurs that will be setting up there as well and I think business meetings and bringing external people in So for us it kind of made sense to try and marry the two. Yeah That I truly believe that the secret of success, you know, and to invest in a club.
Um How many courts do they have to be? Do they have to be indoor? Can some of it be outdoor? Um, what are you guys really looking for? So, for the, for the courts, I think it's very important. Again, it depends on where it's located. So, if it's in Toronto, outside courts is not going to work, right?
So, if it's in Miami, Probably more likely to have outdoor courts, majority and the majority outside courts, but also have indoor courts for schools, especially, and for that security aspect of for kids to come into the venue and feel safe in, in, in, in that environment. Um, if it's raining, you can still play if it's, if you have a few indoor courts so that you'll, you'll always have that revenue flow in Mexico, even though it is an extremely warm country, we've, we've put a. semi roof on.
So as I said, it'll cover everything and stop the sun, but the wind flow and the air flow will be constant there. So there, you will have an outdoor feel to it. Um, and again, it depends on the location. If you're on the coast, on the cliffs, obviously having some sort of wind deterrent would make sense, but if you're inland, you might have some other issues. So, what's the minimum core and minimum, like, uh, square footage or acreage of the property has to be for you guys to invest in the club.
So, in terms of size, I think what we've recommended is that we have a minimum of 989. Seven courts as a bare minimum, because otherwise from a financial sustainability model, it becomes a bit complicated. Um, you need that many to drive the restaurant, uh, and you need that many to drive people in engagement into the container shops as well, and also to the business center. Too small, people won't look at it as a serious venture.
But if you have a decent size of seven, eight, nine, then people will come up. I don't think it should be too big either. So you need to have a cap and we haven't quite worked out the best cap for that yet, but it's something that will be coming pretty soon. I think. How about in areas that people want to build clubs, but, uh, you know, there's no exposure there yet and you get time. You have to educate people.
Are you still looking for that many courts or, uh, you're, you're going to invest in a company and maybe that puts up four courts with a option of potential putting in another four or, or, or six. I think, um, we would probably not go into the areas where anything less than seven or eight would go in. I think it would be unfair for us to go in there and unfair for the investor to go in there as well. So we wouldn't be able to support them at the same level. So we would probably, uh, advise them.
We can easily advise them from a consultancy point of view, but from, from our investors, I don't think it's, it's, uh, the best way to, to go forward. Even in an area that there's no exposure, you need to educate people about. Uh, uh, Padel or you won't, you won't really, you'll, you'll avoid those areas. Um, we won't avoid them, but we, we would, we would prefer to attack that from a consultancy point of view.
However, we have investors that also are from home, have hometowns in, in small areas that want to get, um, really go for it. Obviously we're not going to say no to them either. So let's talk a little bit, something very, very interesting that you mentioned before, sustainability. Um, how's the whole process works and what is exactly so for our viewers and listeners to, to learn more. So we have three sustainability models, which is based on economics, sport and environmental.
So for us, that is the, the, the pillar to success as well as the, uh, as everything else. So from a environmental point of view, we install sun cells on top of, uh, the, all of our venues. So that's the place is then self sufficient and they can then obviously sell then any access energy to the grid back in various countries. So I know here in Sweden, for example, that is a very successful model because we generate, even though the two months that we do get sun, um, it's a lot of sun.
So we, they. That energy can get sold back to the grid and then, um, they, they can get a decent income from that as well. So that filters back in then to the economic sustainability. We want the, the venue to be sustainable, not only based on sport, but also from business and local community. If you can get everyone involved, um, you, we, we estimate that 70 percent of the income of the center could be non sports related.
And I think from that point of view, the stress of running a club becomes a lot less, you can focus on the sports instead of focusing on the money part. And then you can really, really drive, uh, the game home with, with every aspect of the community. That's amazing. That's genius, to be honest with you. Let's talk about something exciting. Paquito Navarro. What is the link between you, the company, and the super mega Padel star, Paquito Navarro?
Yes, we're lucky enough for Patrick, our co partner, to know a few people in Padel. And we reached out to him, and he loved our idea. He thought it was a really good way for him to get involved into Mexico as well. So we're, we're currently talking to him about, uh, having an exclusive deal with his platform on, uh, at our venues so that people can then learn the sport a lot better. And then the, his program could then. help develop the next generation of Mexican stars into battle.
So it's a great marriage for us. We're incredibly lucky to even be considered by him. We're very eternally grateful for that. But I think I think it's a testament to the project. All right, Magnus, let's talk about the North American expansion. And what are your goals there? Well, we want, uh, our biggest goal is to ensure that Padel is entered into the Olympics in 2032. For us, I think that's the, that's, uh, the lofty goal that we have.
And to do that, you need a considerable amount of players. Any sport to get into the Olympics, that is the holy grail, I think. And if we can do it through America, and I think, considering that, what's it, 90 percent of all sponsorships into the Olympics are American or Chinese, I It is a market that needs to be strong. Um, and with the financial muscle in the, in the U S as well, and the, uh, and the interest in sport in the sport, uh, in the U S it makes sense.
So for us, the U S is our next frontier. We've proven the concept we've got interested, um, backers in Mexico. Now we want to bring, bring it over to America in all its glory and further develop. The concept there. Okay, Magnus, thank you for coming on the show. We want to welcome you, uh, wish you all the luck. All the luck. very much. We are All Things Battle.